Bering Exploration, formerly Oncolin Therapeutics, has begun drilling on its South Texas oil and gas prospect that has potential gross reserves of 5,000,000 barrels of oil and 46BCF of natural gas. The initial well will be drilled to approximately 10,000 feet to test the Oligocene Frio trend in South Chambers County, Texas. Bering's interest is a 5% working interest after pay out in this prospect.
Based upon the estimates by the originating geologist, it is estimated that this prospect could have potential reserves of 5,000,000 barrels of oil and 46 BCF of gas, which equates to a total of $558,000,000 in future gross revenue at today's prices of $76.00 per barrel of oil and $3.88 per Mcf of gas. There is no guarantee that this prospect will be successful or that these numbers will be achieved due to production and/or price fluctuations. Bering's net revenue interest would equate to approximately 4% of the gross revenue and production figures discussed in this release, or approximately $22M.
"We are very excited that our first oil & gas acquisition is one that has a tremendous amount of upside for our company with very low risk to our shareholders," stated Steven Plumb, VP of Finance of Bering. "We look forward to continuing to grow Bering through acquisitions of drilling and production opportunities."
Oncolin has recently announced that its board and majority shareholders have approved a name change to Bering Exploration, Inc. and that the company expects the name change to occur within the next 45 days.
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