CARSON CITY, Nev., April 18, 2012 /PRNewswire/ -- Drake Gold Resources (OTC Markets: DKGR) is pleased to announce it has acquired 1,500 acres of producing oil & gas assets in Venango County, Pennsylvania that contains 299 wells.
The majority of these wells are production capable but were shut in due to financial constraints of the previous owners and severe drop in oil prices in 2008. However, they can now easily be pumped and produce between 1 and 5 BOPD (barrels oil per day). Some wells will require a work over which includes replacing pumps, fixing down hole casings etc. while others will only require treatment to remove the mineralization and paraffin build up. Drake's experienced management team and consultants will provide state-of-the-art know how to facilitate these reworks and treatments.
The work over / treatment of each well is considered both low risk and low cost considering that these are shallow wells averaging 800-1000 feet in depth. Each well is estimated to require a $2,000-8,000 investment to bring production up to its maximum capability.
Drake's financial partner, Real Resource Fund, has already advanced funds to initiate the work program on this project. As such, this will allow minor improvements to currently producing wells to begin by increasing the pumping frequency followed by the treatment of the wells to improve overall production flow. Currently 10 wells on the first lease have been worked over, are producing and scheduled for treatment. The other 8 wells on the first lease have been scheduled for a work over. The company will include ongoing website and press release updates as wells come online and production is improved.
"Drake is very excited to have acquired its first producing asset and that the work program is already underway to expand production. This is an important milestone for the company and management is looking forward to producing results and expanding through acquisitions," stated CEO Robert Jackson.
In addition to the work program, there are considerable targets for in-field drilling which will be implemented in conjunction with the reworks of the existing wells. The leases currently produce out of the Red Valley and Second Sand formations. There is down hole production potential in the Speechley Sand and Marcellus Shale.
For any inquires please contact Drake's Investor Relations at phone: 530-405-3547 or email:IR@Drakegold.com.
Please read the Forward Looking Statements & Risk Factors: http://DrakeGold.com/Risk_Factors
SOURCE Drake Gold Resources