HOUSTON, April 25, 2011 /PRNewswire/ -- Bionic Products, Inc. (OTC: BNPD.PK) announced today that Texas Oil and Minerals, Inc., the Company's only wholly-owned subsidiary, is completing the final phase of its due diligence on the Damon Field Project. This project will include the purchase of a 25% working interest in four wells in the Damon Mount Field located in Brazoria County, Texas.
Revenue streams related to the Damon Mound Field project will generate the following numbers to BNPD's income statement: Recent production income reflects two of the subject wells had a gross income of $73,347 in the first quarter of 2011. These numbers would yield $58,677 to the working interest or $14,670 for a 25% working interest for just two of the wells. The other two wells are not currently producing. As part of the overall project plan, Texas Oil and Minerals, Inc. will spear head well work- over efforts, to ensure all four wells are producing at maximum efficiency. The management feels that based on these numbers; this project will yield at least an additional $112,000 annually, including expenses to the Company's income statement. The Company's current CEO, Mr. Tom Gouger, through his vast knowledge of the area, has tested numerous approaches and verified what works. The due diligence efforts lead by Mr. Gouger includes a refined a strategy that, with proper capitalization, will maximize profitable production from existing wells.
In addition to the work-over wells, the Texas Oil and Minerals geologists are exploring the possibilities of drilling at least one new well located within the lease.
About Damon Mound Field
As part of the South East Texas Salt Dome, the Damon Mound field of South East Texas is known for consistent production after initial production. Oil production in the upper Gulf Coast area was boosted by numerous discoveries, one of the most prolific of which was the Damon Mound Field. A limestone formation that rises 146 feet above the surrounding terrain is just west of Damon and State Highway 36 in northwestern Brazoria County (at 29 degrees 17' N, 95 degrees 45' W). The mile-long mound runs east-west and is 600 to 800 yards wide; it covers 3,000 acres. This field has had financial significance for some of the energy sector giants. One such company was Sinclair oil. In its earliest stages of development, the leases the Company obtained in this field helped Sinclair carve its name in history.
Safe Harbor Statement
Some of the statements made by the Company in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. The Company believes that its primary risk factors include, but are not limited to: production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others. Additional information concerning these and other important factors can be found within the Company's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.
SOURCE Bionic Products, Inc.