DENVER, April 9, 2012 /PRNewswire/ -- Grid Petroleum Corp. (OTCBB: GRPR) (Corrected): The Board of Directors are pleased to announce that Grid Petroleum has received an updated drilling timeline for the first well to be drilled, of Phase One, (Phase 1-A) of the Joint Venture Development Agreement the company recently announced.
The Anticipated Start Date for the Drilling to Commence on the Garcia #3 shall be from April 21, 2012 to April 30, 2012.
The delay has been due to the inability of a third party joint venture investor in the Garcia #3 well to meet its cash call to retain it's participation interest.
Grid Petroleum Corp is currently in negotiations to acquire an interest in the Garcia #3 well due to its recent availability.
The company has determined that this participation will enable the further development of the Mutual Area of Interest in a timely basis.
The Joint Venture Agreement is for the development of a Mutual Area of Interest in the Northwest Premont Field in Jim Wells County, Texas. The Field covers 4,500 acres and is part of the Gulf Coast Trend in South Texas.
The first well to be drilled, the Guerra #3, has been permitted for drilling down to a total depth of 4,000 feet with the Frio Sands identified as the targeted formations.
Drill site access roads and the initial drill pad are under construction, anticipating the d arrival of the drill rig to commence the initial well. It is anticipated that the Guerra #3 will begin drilling on or before March 15. The field operator has indicated that the drilling and rig contract has been negotiated for an initial 20 well drilling program, which is classified as Phase One for the field development.
Drilling, completion and testing the well prior to initial production will take approximately 30 days, subject to mechanical failures or acts of God. As soon as the Guerra #3 has been completed, the drilling contractor will move the rig onto the next drill pad currently under construction, to begin the drilling of the second well. This well is currently being permitted. The operator will continue this ongoing process until all the planned 20 wells have been drilled and completed.
This initial well is an offset to the Guerra #2 which was drilled to 4,000 feet and tested positively for oil and gas in 12 potentially productive pay sand zones encountering 118 net feet of pay.
The number of wells to be drilled in Phase 1 will be 20 in total. 15 wells in Phase 1-A and 5 wells in phase 1-B. All 20 wells drilled will be strategically located to exploit the maximum number of potential zones of production, with the intent of accomplishing dual production of oil and/or gas based on substructure mapping of the most recent, previously drilled wells.
Legal Notice Regarding Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in the Company's periodic filings filed from time to time with US Securities and Exchange Commission at www.sec.gov.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). They may not be offered or sold in the United States (as defined in Regulation S under the Securities Act), except pursuant to an exemption from the registration requirements of the Securities Act.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms such as estimates of a mean of undiscovered natural gas and estimates of a mean of undiscovered oil that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports filed by us from time to time with the SEC, available from us at www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
SOURCE Grid Petroleum Corp.