LAS VEGAS, May 29, 2013 /PRNewswire/ -- Bayport International Holdings, Inc. (OTCPINK: BAYP). Today we are pleased to announce the signing of a Contract to purchase an interest in 2 oil wells to be drilled in the Milford Lease, Forest County, Pennsylvania. Drilling Permit numbers 38 and 39 have been issued as per Pennsylvania Department of Environmental Protection (PA DEP).
The interest is for 5.0% Working Interest and 3.75% Net Revenue Interest to be acquired in each of the two wells. This is the net revenue that the company is seeking and will compound on. The aggressive oil and gas program that has been instituted in 2013 is already starting to see a new company vitalized and diversity brought to shareholders. Spud date and production logs will be available shortly.
The location Forest County, Pennsylvania is east of the town of Titusville, Pa. This area has always been prolific in the production of oil and natural gas. The preliminary target zones for wells on this lease will be the 1st Sands, 2nd Sands, 3rd Sands, and Red Valley Formations. These oils and gas bearing formations are found throughout this immediate area and historically have been good producers. All zones should be encountered at drilling depths of approximately 1100-1300 ft., depending upon the elevation. Well records found in the vicinity show the presence of these formations on and near the lease. This lease is off-set on all sides by operating oil and gas wells, owned and operated by various independent operators.
Pennsylvania has been acknowledged as the birth-place of the oil and gas industry since Edwin Drake drilled the first commercial oil well near Titusville in 1859. Prior to the invention of the internal combustion engine the primary usage for crude oil was as lamp oil and medicines. Soon after the finds in the Forest County area early drillers moved out into the surrounding counties of Butler, Bradford, Venango, and Warren of northwestern and central Pa. With the early technology available these drillers searched and found oil in the relatively shallow sandstone formations of the Venango Sands groups.
Some of these early wells blew out at over 10,000 bopd of oil per day. The drive that forced this oil out at such high rates was the natural gas that was also present. Before a market was found and pipelines were built much of this natural gas was wasted, being vented or flared to atmosphere. The intense market demand for crude oil created a boomtown history that rivaled anything in the gold fields of California. Spin-off industries such as transportation, refining and paraffin extraction created a job basis that lasts today. Up until the mid-1930's this region of Pa. was the world's leading exporter of oil. The majority of these early wells were drilled to a depth less that 3000 ft. Success rate of wells drilled in this known region of Pa. has been approximately 95%.
It is the best appraisal that wells drilled on the Forest Co. Milford Lease have an excellent chance of being economically productive. These leases give a drilling program a nice balance of oil and natural gas production. Ideally we will see 20 barrels of oil per day, initial production. Shallow wells go through a decline curve after a short period of flush production and settle down to a rate that may be maintained for many years. An old oil field axiom states that a well will give up half its overall production within the first year of production. With modern techniques of operating the overall production rates can be greatly increased. It is quite common for wells in this region to continue to operate economically for (20) years or more after drilling. Of course this economical life span is a factor to the price of being received for the oil and natural gas.
The acquisition of Interest is through Downhole Energy, LLC. in Rockwall Texas.
Bayport CEO Jim Porter said, "We are excited about our direction and new partnerships in the Oil & Gas industry. As we go forward we are adding to our ever growing producing properties portfolio including such properties in Jones County Texas, Nacogdoches Texas, and Pike Mississippi."
The details on the permits can be found at:
Click on permits issued detail reports.
About Bayport International Holdings, Inc.
Bayport International Holdings, Inc. is a company formed to exploit the various precious minerals in the U.S. to acquaint the public with practical investment opportunities in strategic metals and minerals. Bayport International Holdings, Inc. is primarily focused on precious metals, rare earth, and oil and gas ventures. Bayport International Holdings, Inc. is developing mining and oil and gas properties with economic potential with the aim of bringing such properties to commercial production. The company's portfolio of properties is primarily located in the prolific western USA in Utah and Texas.
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