BEDFORD, Texas, September 25, 2013 /PRNewswire/ --
PetroTech Oil and Gas Inc. (the "Company" or Petrotech") (OTC: PTOG) is pleased to announce the following updates:
We wanted to update our shareholders on the progress on the Navarro County leases and the positive test for oil in well number 11 of the knox lease. Our machine shop has completed all the special fabrication necessary and put together all the material and parts so that we can begin moving the rigs and equipment in and resume the process of production on our first well. We are excited by the results thus far. With the recent high oil prices and high quality oil that is produced in this area we should be able to bring in 5 to 10 BOPD on this first well.
Charles Stevenson Operations Manager commented that, "We hope to increase that amount after major treatment and using our technology to 20 to 25 BOPD, with prices at 108 a barrel, we are very excited about this.
We wanted to release a second update on the progress of our recent LOI to acquire the property in Oklahoma. We have begun title work and have started drafting a final agreement for purchase, which we will be presenting soon. We have had favorable discussions in regard to obtaining our financing for the acquisition, and we are planning another trip next week to Oklahoma to keep the acquisition moving forward to closing. We have been advised that we should obtain the following production rates based on a three level work and production plan:
Vice President Ayo Obetunmibi commented that, " Once we achieve and implement this plan, we should will self fund much of our future development on our other leases as well as cover our corporate operating cost of business".
PetroTech Oil and Gas, Inc. uses multiple patent technologies for Enhanced Oil Recovery and in some cases will use their new pumping system co developed by PetroTech. We will use this patented technology with other proven technologies currently used in the industry to drill, complete equip new drill wells and older wells with secondary production opportunities. Throughout the United States there are primary depleted oil reservoirs representing billions of barrels of oil that lend themselves to the use and exploitation of Enhanced Oil Recovery and PetroTech Oil and Gas, Inc.'s proven patented technology. Without EOR technology, these reservoirs will produce only about 20% of their Original Oil in Place. Gas injection EOR is a proven method that has been in use over the last 50 years in the oil fields of West Texas, Kansas, Oklahoma, Michigan, Wyoming and Oklahoma. Starting in the late 1990's we started researching various EOR methods and sources of gases and mixtures of gases to find an alternative gas to pure CO2 for EOR. In doing so, we found that a N2-CO2 mixture was 2-3 times more efficient than CO2 in the recovery of stranded oil. Recently we have been introduced to a patented exhaust unit that was more efficient than regular CO2. A new prototype of that equipment was then built for injection purposes; and is in the process of being further developed for commercial use.
We have analyzed the different types of oil producing reservoirs in most of the major geological basins in the United States and have determined that the use of our process and method will enhanced the recovery of stranded oil reserves in these areas that otherwise may never be produced. The pinnacle reefs, other reefs in Texas make excellent reservoirs for EOR because they are compact, have consistent reservoir properties, thick pay columns, and are overlain by an impermeable cap seal. However other formations have responded favorably as well. These reservoirs represent over 300 million barrels of recoverable stranded oil using our patented method and technology. CO2 floods have been successful on the reefs in the US with rates as high as 1000 BOPD. Our process will have a major impact on the recovery of stranded oil in U.S. basins. This statement is based on the fact that we have an unlimited source of gas and we do not need an expensive infrastructure to transport the gas, plus the fact that it is proven that a mixture of CO2 and N2 is more efficient than CO2 in some trials.
The cost and recovery of a project will be dependent on size of structure and depth; the cost will range depending on type of formation and type of treatment design. Hopefully, per project we will capture an additional 20% to 40% of oil in place. Attempting to do this in a period of 5 years as opposed to the original 20% of oil that has already been produced; which may have taken ten to twenty years. Each successful project is estimated to have a six to twelve month payout.
For more information please go to our websites, which can be found at: http://petrotechog.com
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
SOURCE PetroTech Oil and Gas, Inc.