PetroSun Advances Arizona Exploration Program
PetroSun, Inc. said that the final remaining details of its Arizona exploration program have been completed and the scheduling of the Holbrook Basin drilling operations has commenced. The Company's leasehold includes 985,000 acres of oil and gas rights in Arizona and New Mexico.
The Holbrook Basin of Apache County, Arizona has been targeted for a minimum of four exploration wells to be drilled during 2007. The initial test wells will be drilled to the basement on each structure to determine the hydrocarbon potential of the Permian, Pennsylvanian and Devonian age formations.
The Holbrook Basin contains promising indications of oil, natural gas, helium and CO2 from prior producing fields, exploration wells and other geological studies. The basin contains the former helium producing fields Pinta Dome, Navajo Springs and East Navajo Springs and a CO2 field currently being developed near St. Johns, Arizona. The current U.S. market price for crude oil is $64.00 per barrel and natural gas is above $7.00 per thousand cubic feet. Helium reserves are in decline worldwide and the Holbrook Basin structures contain potential recoverable helium reserves in excess of 10 billion cubic feet. The current domestic market price for helium exceeds $54.00 per thousand cubic feet.
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 that is located on the Navajo Nation. The Dineh-bi-Keyah has produced in excess of 18,300,000 barrels of oil since 1969. The initial production rate of individual wells was as high as 3,300 barrels of oil per day. The #4 Navajo well has produced more than 3.5 million barrels of oil since it was drilled in 1967.
The Company plans to provide live feeds of drilling operations on its website that will enable our shareholders to view the exploration process from start to finish.
PetroSun's current oil and gas operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona and Australia in 2007. Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae. The Company's cutting-edge technologies, combined with a proven ability to apply them effectively and safely within a disciplined framework, create long-term value for PetroSun shareholders and partners. PetroSun is headquartered in Phoenix, Arizona with field offices in Shreveport, Louisiana and Opelika, Alabama.
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