Virtus Oil and Gas Announces Signing of Drilling Contract and Updates Timing for the First Well
HOUSTON, April 21, 2015 /PRNewswire/ -- Virtus Oil and Gas Corporation (OTCBB: VOIL) ("Virtus" or the "Company") today announced that a drilling contract has been signed with Energy Drilling LLC to drill the Virtus Lone Pine 34-11-5 Well.
Energy Drilling will initiate operations this summer with plans to reach total depth on the 7,000 foot well on or before July 31, 2015. They will be utilizing Energy Drilling's Rig 8 for this particular Test Well. An additional 12 to 15 days will be needed to complete the well after reaching total depth. The time it takes to complete the well is dependent on results of the cuttings and potential oil shows from the Jurassic-age zones.
Downhole tests and geologic findings gathered from the Virtus Lone Pine 34-11-5 Well will be used in conjunction with the Company's existing seismic resources to mitigate dry hole risk for the second well planned for the next calendar year. The second planned well will be drilled to a depth of approximately 12,000 feet to test additional zones.
Management Comments
Rupert Ireland, CEO of Virtus, said, "This partnership with Energy Drilling to drill our first vertical test well at Parowan is very exciting. Gary Smith, CEO of Energy Drilling has more than 38 years of drilling experience with over 30 years in Utah alone. We believe this contract and partnership ensures a highly capable and efficient rig to execute on our 2015 goals."
Brett Murray, COO of Virtus, said, "Drilling this first well will satisfy the BLM's Federal Well Obligation for holding leases within the federal unit beyond their primary terms. The importance of drilling a shallower well as part of the Federal Unit puts Virtus in a position to weather the current energy markets while retaining our entire interests beyond their primary terms."
Gary Smith, CEO of Energy Drilling LLC, said, "Rig 8 is a 1,000 horsepower rig capable of drilling total depths up to 10,000 feet. It is in excellent condition as it was completely reconditioned in 2012 and has drilled over five wells since its upgrade."
Submission of Application for Permit to Drill
Additionally, on March 23, 2015, Virtus submitted its Application for Permit to Drill (APD) to the Utah Bureau of Land Management (BLM). Upon approval of the APD, Virtus will begin building the well pad and getting all necessary requirements to spud the well this summer as the Lone Pine 34-11-5 will be the company's Federal Unit Well Obligation. Interested parties can view new pictures of the Virtus Lone Pine 34-11-05 pad site by visiting http://www.virtusoilandgas.com/virtus-lone-pine.
About Energy Drilling LLC
Energy Drilling LLC (http://www.energydrillingllc.com) is a privately owned drilling company operating in the Rocky Mountain region as well as Arizona and Nevada. The company owns multiple rigs in the area and is experienced in Utah knowing all the State Regulations and requirements. The Company is known for excellence in oil and gas exploration, water well drilling, site location excavation, single well jobs or complex, multi-faceted, high profile projects. Energy Drilling is focused on safety, innovation, dependability and professionalism.
About Virtus Oil and Gas Corporation
Virtus Oil and Gas Corp. (OTCBB: VOIL) is a Houston-based oil and gas exploration and production company currently focused on the Parowan Project, a 55,477+/- Acre prospect targeting the Central Utah Thrust Belt. The prospect is situated near recent Utah discoveries, including Wolverine Gas and Oil's Covenant Oil Field, which is consistent with Virtus' strategy to acquire and develop oil and gas resources in proven, onshore basins in the United States.
Forward-looking Statements
This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in the Company's SEC reports. The company will need to raise additional financing in order to advance its exploration and drilling program. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Cautionary Note to Investors Concerning Prospective Resources
This news release uses the term "prospective resources." Virtus Oil and Gas advises investors that the U. S. Securities and Exchange Commission ("SEC") does not recognize this term, and the SEC permits oil and gas companies, in their filings, to disclose only "reserves." In addition, prospective resources have a great amount of uncertainty as to their existence and economic and legal feasibility. Investors are cautioned not to assume that estimates of prospective resources are economically drillable, or will ever be upgraded into reserves.
Contact:
Virtus Oil and Gas Corporation
1517 San Jacinto Street
Houston, TX 77002
IR Phone: (855) 733-VOIL
[email protected]
SOURCE Virtus Oil and Gas Corporation
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