LAS VEGAS, Feb. 26, 2013 /PRNewswire/ -- Bayport International Holdings, Inc. (OTCPINK: EXTO). Today they are pleased to announce the signing of a Letter of Intent to purchase an interest in 2 oil wells located in the Milford Lease, Forest County, Pennsylvania.
The interest is for 5.0% WI and 3.75%to be acquired in each of the two wells, the location Forest County, Pennsylvania is located 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, Vanango, 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 bbl. 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 reviled anything in the gold fields of California. Spin-off industries such as transportation, refining and paraffin extraction created a job bases 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 a 20 bbl. oil per day (bopd), initial production, can return in approximately 3000 bbl. of oil in the first 24 months. A 20 MCF per day gas well can produce approximately 10 MMCF over a similar period of time. 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.
At the time of this report oil is $90/barrel on the world market and natural gas is approx. $3.50/MCF. When feasible a natural gas contact can be obtained through industrial buyers that enhance the price paid.
It is imperative that all prudent oil field operations as to drilling, completing, and operating of these wells be observed. All potential producing formations should be evaluated, not only for the presence of oil and gas but also to avoid any excess bring production. It is my opinion that with the nature of off-set drilling success rates, known production zones, relatively low cost to drill and operate, and the high price being currently paid for the end product of oil and gas, wells drilled on the Milford Lease have an excellent change of being financially successful.
Drilling Operator: Coastal Petroleum Corporation "CPC" an independent producer of crude oil and natural gas, licensed by the State of Pennsylvania as an oil and gas operator and Turnkey Driller. CPC is actively involved in drilling activities within the state of Pennsylvania, USA. CPC has over 50 years of experience in the oil and Gas business
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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