Petrol Oil and Gas Sees 57% Increase in Proved Reserves
Petrol Oil and Gas announced the results of an independent analysis of its oil and gas reserves for the year ended December 31, 2005. The reserve data was analyzed and reported on by McCune Engineering, an independent licensed petroleum engineering firm based in Baldwin City, Kansas.
Highlight's of Petrol's 2005 year end Reserve Report include:
- $53.4 Million Pre-Tax PV 10% for Proved Reserves
- 18.7% Increase in Pre-Tax PV 10% value during 2005
- 15.87 Bcfe in Proved Reserves for year End 2005
- 57.3% Increase in Proved Reserves during 2005
Petrol holds a 100% working interest (WI) and an average 80% Net Revenue Interest (NRI) in approximately 165,000 gross acres covering coal bed methane (CBM) and other oil and gas reserves located in eastern Kansas and western Missouri.
"Obviously we are pleased with the results of the 2005 year end independent reserve report, particularly the fact that our Proved Reserves increased by just over 57% to 15.87 Bcfe, which further demonstrates the potential of our properties," said Paul Branagan, Petrol's President and CEO. "Most of our Proved Reserves are currently located in our Petrol Neodesha Project, a 10,000 gross acre producing unit that contributed about 81% of our $6.04 Million in revenues for 2005. Although we intend to continue development of Petrol Neodesha, our focus for 2006 turns to proving up the large reserves in our other acreage, particularly our 92,000 acre Coal Creek project. We are very excited by our other prospects and the effect they will have on Petrol's Net Asset Value as we begin to produce and then prove up these new project areas."
As reported by Petrol, in December 2005, Petrol began the development of its 92,000-acre Coal Creek project by allocating approximately $10 million towards the completion of activities that now has roughly 46 new gas production wells, 3 saltwater disposal wells and two gas gathering pipeline systems being connected into the Enbridge Interstate sales pipeline. Management expects Petrol's proven reserves to develop rapidly as Coal Creek gas production comes on line and drilling activities continue.
About Petrol Oil and Gas, Inc.
Petrol Oil and Gas, Inc. is an oil and gas exploration and
development company currently involved in the development of natural
gas from leases encompassing approximately 165,000 gross acres in
Kansas and Missouri.
- Petrol Names Steve Littell Chief Operating Officer (Aug 22)
- Petrol Welcomes New Board Members (Dec 14)
- Petrol Closes on Additional Financing for Coal Creek Project (Jun 07)