Grid Petroleum Corp. announced Tuesday the completion of the acquisition of Joaquin Basin Resources Inc. The Company has determined the primary asset of the company, the 4,000 acre Kreyenhagen Trend leases, contain the same target zones of production as the neighboring Kreyenhagen Ranch.
These target zones consist of the heavy oil in the upper Temblor and the Unconventional Shales, of the Kreyenhagen and the Monterey that continue to trend North and South from the Kreyenhagen Ranch Field.
Initial estimates indicate that there exists 82,000,000 BOOIP (Eighty Two Million Barrels Oil In Place). The Company currently holds a 50% Working Interest in the 4,000 acres providing an estimated 41,000,000 BOOIP to the Company's Interest.
Using a P10 valuation of the Oil in Place reserve calculation and assuming a recovery rate of 10% indicating the volume of recoverable oil at an estimated 4,100,000 Barrels of Oil.
Using a conservative value for oil at $100.00 per barrel and a cost of production at a very conservative $45.00 per barrel of oil providing for a valuation of the Company's Interest of the Kreyenhagen trend lease at $225,000,000.00 as determined by the company's geologists.
Grid Petroleum Corp. is a development stage company focused on the acquisition and development of low cost high reward oil and gas prospects with infield drilling for proven potential reserves in the United States and Canada.
The company anticipates the initiation of a development plan with its joint venture partners for the purpose of establishing suitable drill sites for the Kreyenhagen Trend leases in the near future. Upon completion the company will have established a time line for the development of its significant Oil and Gas assets.
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