HOUSTON, Oct. 27 /PRNewswire/ -- Bering Exploration, Inc., (Pink Sheets: OCOLD) announced today that it has successfully drilled its first well on its South Texas prospect which has potential gross reserves of 5,000,000 barrels of oil and 46 BCF of natural gas. The initial well was drilled to a total depth of approximately 10,000 feet to test the Oligocene Frio trend. The company expects to announce the results of the electric log, which will indicate which zones are productive, within the next few weeks. Bering's interest is a 5% working interest after pay out in this prospect.
Based upon the estimates by the originating geologist, it is estimated that this prospect could have potential reserves of 5,000,000 barrels of oil and 46 BCF of gas, which equates to a total of $560,000,000 in future gross revenue at today's prices of $81.00 per barrel of oil and $3.35 per Mcf of gas. There is no guarantee that this prospect will be successful or that these numbers will be achieved due to production and/or price fluctuations. Bering's net revenue interest would equate to approximately 4% of the gross revenue and production figures discussed in this release, or approximately $22M.
"The successful drilling of this well is a crucial step in realizing revenues from this project," stated Steven Plumb, VP of Finance of Bering. "We are looking forward to adding additional projects in order to increase shareholder value."
About Bering Exploration, Inc.
Headquartered in Houston, Texas, Bering Exploration, Inc. is an independent oil and natural gas company that focuses on indentifying, evaluating, developing and acquiring potential natural gas and oil wells in the Gulf Coast onshore region. Additional information about Bering can be found on the web at www.beringexplore.com.
Safe Harbor Statement
This press release contains statements that may constitute forward-looking statements and are based upon assumptions that management believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of exploration efforts and the timeliness of development activities, leasing of the target acreage, fluctuations in oil and gas prices, access to acquisition and development capital, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. For additional information about Bering's future business and financial results, refer to Bering's Quarterly Reports on Form 10-QSB and Annual Report on Form 10-KSB and other reports, which are on file with the Securities and Exchange Commission. Bering undertakes no obligation to update any forward-looking statement that may be made from time to time by or on behalf of the company, whether as a result of new information, future events or otherwise.
SOURCE Bering Exploration, Inc.