HOUSTON, Jan. 19, 2015 PRNewswire/ -- Virtus Oil and Gas Corporation (OTCBB: VOIL) ("Virtus" or the "Company") today announced the completion of its required onsite well staking for the first #1 well pad and ancillary facilities.
A Notice of Staking (NOS) has been sent to Bureau of Land Management (BLM) which serves as the Company's request to schedule an on-site inspection. Upon completion of the on-site inspection, last Wednesday January 14, 2015, Virtus can now submit its Application for Permit to Drill (APD) to Utah's Cedar City District Field Office of the BLM.
Concurrently, Virtus is in the process of establishing its Federal Unit, which covers approximately 25,000 net acres within the Parowan Prospect. Federal Units allow operators such as Virtus the ability to explore large acreage blocks, operate the area as a single leasehold, and extend lease terms on the acreage for an additional five years. The Parowan Federal Unit will have a single well drilling commitment within six months of the unit being approved.
Virtus Lone Pine #1 Well
The Virtus Lone Pine# 1 well (Named after the single Pine tree situated at this location), is the Company's first exploration well on the Parowan Prospect. The well will be drilled to a total vertical depth of approximately 7,000 feet to test Jurassic age Navajo Sandstone and the Permian age Kaibab Limestone. Additional secondary targets with intervals both shallower and deeper show potential for future exploration. The primary prospect is a large anticline that is created by the thrust fault system in the area. The Lone Tree #1 is a traditional vertical well that will not require a hydraulic fracturing completion process.
Rupert Ireland, CEO of Virtus, commented, "The staking and survey process of our first well, and onsite BLM inspections are needed before we can submit our APD to the state. All of the steps taken over the past twelve months including the acquisition of 18,000 additional acres in June 2014, reinterpretation of the 2D seismic completed in October 2014, and the updated resource evaluation report from Gustavson associates in November 2014, give us confidence as we move closer to drilling our first well."
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.
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.
Virtus Oil and Gas Corporation
1517 San Jacinto Street
Houston, TX 77002
IR Phone: (855) 733-VOIL
SOURCE Virtus Oil and Gas Corporation