The Company's wholly owned subsidiary Production Resources Inc. has hired a contract pumping service to help inject AMEP HOA-800 into a select number of the 193 Olmos heavy oil wells operated on its leases. Due to the heavy rainstorms of the past few months PRI was unable to inject AMEP HOA-800 on a regular time basis. PRI is pleased to report that well injections are now back on pace to treat four to five oil wells per day.
The potential proven producible oil reserves on the lease are approximately 62,000,000 barrels, and the Company believes only about 2% to 4% of these oil reserves have been recovered over the last 20 years. PRI plans to eventually treat all 193 of the oil wells with the goal of producing 400 to 800 barrels of oil a day. At today's oil price of $36.00 per barrel, the lease could potentially produce $4,500,000, in revenue annually.
Charles Bitters, President of AMEP said, "This new heavy oil additive is very exciting and has the potential to radically change secondary recovery of heavy oil." Mr. Bitters also stated, "The purchase of the PRI properties along with the opportunity to use the AMEP HOA-800 treatment on these properties will allow the Company to add tremendous value to AMEP in a very short time."
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