PetroSun, Inc. reported its 2008 domestic oil and gas exploration and development program that will be directed by Executive Vice-President Dr. John Templin.
PetroSun and its working interest partner Holbrook Energy, LLC will drill basement exploration test wells on the Manuel Seep and Little Colorado prospects. The Permian, Pennsylvanian and Devonian formations will be evaluated for crude oil, natural gas and helium.
The Holbrook Basin contains promising indications of crude oil, natural gas and helium from previous exploration wells, geological studies and prior producing helium fields. The similarities of age, rock characteristics, salt and reefs found in the prolific Permian Basin of West Texas and the Holbrook Basin enhances the potential value of the PetroSun exploration program. North of the Holbrook Basin in Apache County lies the Dineh-bi-Keyah Field. The Dineh-bi-Keyah has produced in excess of 18,300,000 barrels of oil since its discovery. The initial production rate of individual wells was as high as 3,300 barrels of oil per day. The number 4 Navajo well has produced more than 3.5 million barrels of oil from a depth of less than 3,000 feet.
The Manuel Seep and Little Colorado prospects are located within the 985,000-acre NZOG lease obtained by PetroSun that includes oil and gas rights contained within the Holbrook Basin of Arizona and the San Juan Basin of New Mexico. The lease provides for a net revenue interest of eighty-one and one quarter percent. A map detailing the NZOG leasehold may be viewed at www.petrosuninc.com.
PetroSun has been advised by Vanterra Energy of Denver, Colorado that the Basin and Range test well has been modified to evaluate hydrocarbon potential to a depth of 10,000 feet. The well is scheduled for the fourth quarter of 2008.
The agreement grants PetroSun a twenty-five percent carried working interest through casing point on the initial test well. The Company will maintain its twenty-five percent working interest on the 12,783-acre lease on all future wells drilled under the agreement. The Mohave County prospect is part of the 985,000-acre NZOG lease and provides for an 81.25% net revenue interest to the working interest owners.
The Company will be announcing its first and second quarter exploration and development plans for North Louisiana in the near future. The development of proven undeveloped oil and gas zones located within the Sibley Field of Webster Parish will be the cornerstone of the program.
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