Doral announced that its independent reserve engineering firm, Joe C. Neal and Associates of Midland, Texas, is nearing completion on a complete review of oil reserves of the Company's recently acquired assets in Chaves County, New Mexico. The reserve report is expected to be completed within the next two weeks. The report is necessary in order to put together a complete development plan for the field including an infill drilling program. Additional information from the report will be used to evaluate PDNP (Proved developed non-producing) reserves that are easily converted to PDP (Proved developed producing) through low cost workovers.
While awaiting the completion of the report, the Company is exploring several options for financing this development and additional property acquisitions that are currently targeted by management. These options include traditional bank financing, bringing in an industry partner or creating a joint venture with a financial partner.
E. Will Gray II, President and CEO of Doral Energy, said, "Although we have not put out much news since the sale of the Hansen assets, we have been very busy examining potential acquisitions as well as considering all possible financing options for making those acquisitions and initiating a complete development program. The first step is to have a complete reserve report which allows us to move forward on all other fronts."
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