Bering has identified its initial West Texas prospect in the Permian Basin which has potential gross reserves of 600,000 barrels of oil or $60 million based upon current prices. This prospect is approximately 640 acres and will target the Sprayberry formation at a depth of approximately 9,000 feet. Bering is currently conducting its technical assessment and once satisfactorily completed will begin leasing the mineral rights. Bering expects to initially retain a100% working interest.
This prospect was the first identified as a result of its recently announced three year exclusive exploration agreement with Glaux Oil & Gas, LLC (Glaux) for the development of numerous leads and prospects in approximately 500,000 gross acres in West Texas using a proprietary aeromagnetic survey. Once leased, Bering will use other advanced oil finding technologies such as telluric and seismic to identify well locations.
The Permian Basin is one of the largest and most active oil basins in the United States, with the entire basin accounting for approximately 19 percent of total U.S. oil production. The Permian Basin remains a significant oil-producing province and contains an estimated 30 Billion barrels of remaining mobile oil and has the biggest potential for additional oil production in the country, containing 29% of estimated future oil reserve growth. Through increased use of enhanced-recovery practices the Permian Basin can have a substantial impact on U.S. oil production.
"We are excited to have our initial prospect selected and expect to begin the leasing phase later this month," stated Steven Plumb, Chief Financial Officer of Bering. "Our exclusive relationship with Glaux is providing us with quality prospects that have been identified using very unique and exciting technologies."
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