According to Murray Conradie, South Texas Oil Company's President, "The addition of these rigs will provide significant cost savings over the next several months while simultaneously allowing us to undertake comprehensive drilling and well maintenance programs. We currently operate and own working interests in approximately 570 bopd and 1,220,000 cubic feet of gas per day and anticipate a significant increase in production resulting from the utilization of these rigs," added Mr. Conradie.
"Acquiring these rigs with experienced crews to operate them represents a very significant advance for the Company and its shareholders, particularly during this prevailing period of widespread rig shortages and escalating costs," said Mr. Conradie.
"Furthermore, the results of the first well in the new find acquired by the company and which has the potential for over 100 additional wells, have been very positive. The well has flowed approximately 5,000 BBLs over the past 30 days with a further pay zone identified behind the pipe which we feel will produce similar or greater production rates," concluded Mr. Conradie.
South Texas Oil Company has mineral interests in 43,244 acres of oil and gas properties made up of approximately 20,000 acres in the DJ basin in Northeast Colorado, 18,000 acres in South-central Texas and 5,244 acres in Southwest Texas.
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