U.S. Petroleum Drills 2nd Successful Well on Senora Prospect
U.S. Petroleum Corporation has successfully drilled the second gas well (Rivera #1) on its Senora prospect in Oklahoma. Drilling of the third well on the Senora prospect is expected to commence later this year.
The Senora and Redfork prospects already have been farmed out to industry operators with the Company retaining overriding royalty interests of up to 7.5% in the various leases and a total of up to nine wells are expected on these two prospects. However, in view of rising energy prices, the Company now intends directly to develop its 100% working interests in the six other oil and gas prospects which it owns in Oklahoma.
The Company's first such project will be the South Brook Gas prospect, which is situated in an area of prolific production in Okfuskee County - oil and gas production within just a one mile radius of the proposed initial drill site on the South Brook Gas prospect exceeds $35 million to date at current prices. Quotes are being obtained from contractors to drill the first well on this acreage.
The remaining five Oklahoma prospects, all of which offer considerable potential, will be developed in due course. The Company also intends to acquire further promising oil and gas prospects in the State of Oklahoma, with a principal focus on Muskogee, Okfuskee and Okmulgee counties.
Leasing activity in San Saba County, Texas is expected to commence this month. As announced on Feb. 10, 2003, the Company has been appointed Managing Joint Venture Partner of San Saba Exploration Joint Venture ("the joint venture"), which plans to drill a deep test well to prove a potential major oil field. The Company expects to earn a $500,000 project management fee plus a 25% carried working interest in the joint venture.