American Oil & Gas, Inc. reports that the preliminary December 31, 2007 estimated ultimate gross proved reserves for three wells drilled during 2007 at American's Fetter project yielded a combined 8.188 Bcfe of natural gas equivalent, 252,490 Bbls of oil, and 5,121,234 Bcf of natural gas.
The estimates presented are based on production history and/or reservoir data available through February 14, 2008 and are subject to future revisions as additional production history becomes available. The current reserve evaluation did not result in value being assigned yet to proved undeveloped locations offsetting these initial wells due to the high costs associated with drilling and completion operations to date. This was not unexpected as considerable time and capital was expended on these early wells to obtain geological and reservoir data that will not likely recur as additional drilling and field development continues. Final results will be provided in American's Annual Report on Form 10-K for the year ended December 31, 2007 to be filed with the SEC in March 2008.
Andrew Calerich, President of American commented, "the reserve estimates for the wells drilled at our Fetter project firmly support moving to the next phase of drilling that will focus on drilling efficiencies, maximizing production and reserve enhancement. We applaud Red Technology Alliance for the capital resources assigned and Halliburton Energy Services, Inc. and RTA for the human and technology resources deployed. Without this commitment, the Fetter Project could not have advanced to this level."
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