HOUSTON, Dec. 17, 2010 /PRNewswire-FirstCall/ -- Pole Perfect Studios, Inc. (OTC Bulletin Board: PPFT) has announced information about its oil and gas activities. See "Oil and Gas Activities" below for details. In addition, Pole Perfect has announced that it anticipates changing the name of the Company and obtaining a new ticker symbol to more accurately reflect its business operations. Pole Perfect is in the process of drafting documentation to effect the name change, which should be finalized sometime in early 2011.
Oil and Gas Activities
Pole Perfect, through its operating subsidiary Torchlight Energy, Inc., is an exploration stage energy company, incorporated under the laws of Nevada. It is engaged in the acquisition, exploration, exploitation and/or development of oil and natural gas properties in the United States. In November 2010, Pole Perfect entered into a share exchange agreement, whereby Torchlight became a wholly owned subsidiary and the shareholders of Torchlight received stock in Pole Perfect in exchange for their stock in Torchlight. Upon the acquisition of Torchlight, Pole Perfect abandoned all of its previous business plans within the health and fitness industries. Pole Perfect's business model is to focus on drilling and working interest programs that have a short window of payback, a high internal rate of return and proven and bookable reserves.
The company currently has only one interest in an oil and gas project, the Marcelina Creek Field Development in Wilson County, Texas. Torchlight is obligated according to a contract with Bayshore Operating Corporation, LLC to fund a total of four wells in order to earn a working interest position. Torchlight has funded the first well, which was drilled as a re-entry of the Johnson #1 horizontal well into the Buda formation. The well was drilled to a total depth of approximately 8300 feet and then approximately 1700 feet horizontally. During the process, the well incurred a major fracture zone which required the injection of nearly 23,000 barrels of water in order to continue drilling. This technique, though successful, now requires the well to be de-watered. Torchlight is currently de-watering and completing the well. It is estimated that it will take several more weeks to complete this process. In 2011, the company intends to complete its contractual obligation to fund an additional three vertical wells in the acreage area. It is presently contemplated that these three wells will be drilled into the Buda formation and engineered for horizontals at a later date. Once completed, Torchlight will earn its working interest position, including a 75% working interest in 770 acres and a 50% working interest in 280 acres. The three main pay zones of interest in this field are the Austin Chalk, the Eagle Ford, and the Buda.
Torchlight recently signed an agreement with Fossil Energy, Inc., providing for the terms under which Torchlight may participate in a ten well drilling program in Southwest Nebraska. The project will target the D and J sands in the Denver-Julesberg Basin. The Basin area has been a known oil and gas producer for many years. Currently Torchlight is completing a geo-chemical survey to aid in selecting the best possible drilling locations. Due to weather and road bans, drilling will likely not begin until early second quarter, 2011. It is anticipated that Torchlight will require financing from an outside entity in order to fulfill its drilling commitments in both of its projects. This financing, if available, may be in the form of debt or equity.
You can view more information on the company website at www.torchlightenergy.com.
FORWARD LOOKING STATEMENTS
The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including risks associated with our ability to obtain additional capital in the future to fund our planned expansion, the demand for oil and natural gas, general economic factors, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Pole Perfect is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE Pole Perfect Studios, Inc.