Powder River Acquires Proven Oil and Gas Reserves
Powder River Basin Gas Corp.has completed the purchase of an Oil and Gas project in Goliad County, Texas, containing approximately 2500 acres of proven reserves.
An independent engineering report completed on November 21, 2005 shows proven reserves of 776,000 barrels of oil and 17.4 BCF of gas.
This property immediately adds proven reserves Discounted at P.V. 10% of $77,389,500 to Powder River Basin Gas Corp.'s holdings.
The Company plans to drill 14 wells in the Gulf Coast Frio sand, which is under 4000 feet.
The Frio wells traditionally produce approximately 1,000,000 MCF per day, however operations will choke back each well to between 300 and 450 MCF per day to maximize recovery and the economic life of the project.
One well is planned, after completion of the 14 Frio wells in the deeper Wilcox formation. This is a location which offsets a well completed in the Wilcox on an adjacent property that produced 3500 MCF per day gas, and 300 BOPD.
The project has additional probable reserves and drilling locations which will be studied after the 15 wells are completed.
Drilling on the project will commence immediately following the holiday season, with the first wells expected to be in production by the end of January, 2006. Gas infrastructure is in place.
Due to confidentiality agreements between all parties the price and terms of the purchase will not be disclosed at this time, however it is a cash purchase with no stock in PRVB involved.
"Drilling and development costs will be funded through the Company's marketing agreement, which allows Powder River Basin Gas Corp. to maintain the major interest in the project without debt financing. I'm very excited about the purchase of this property, and I am looking forward to continuing our expansion and increasing our holdings in the end of 2005, and into the New Year," stated Powder River Basin Gas Corp. CEO Brian Fox.
Estimated Net Reserves and Income As Of November 21, 2005 Proved Probable Possible Total Oil 776,440 3,384,334 0 4,161,340 Gas 17,404,000,000 38,099,330,000 0 55,503,340,000 Future (in USD) $139,314,270 $381,372,820 0 $520,687,000 Deduct $ 9,831,510 $ 10,645,550 0 $ 20,477,080 FNI $129,482,760 $370,727,270 0 $500,210,030 Discounted 10% $ 77,389,500 $196,791,170 0 $274,189,670
Powder River Basin Gas Corp. is active in production and acquisition of crude oil and natural gas.
Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.
- Powder River to Complete Waller County, TX Well End of Feb. (Feb 26)
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- Powder River Completes First Well on Biamante Project (Oct 11)