Petrol Oil & Gas Projects $9.6 Million Revenue From New Gas Acquisition
LAS VEGAS, NV -- 11/11/2004 -- Petrol Oil and Gas Inc. (OTC BB: POIG) has completed the acquisition of the leasehold rights to 71 gas wells, producing approximately 3 million cubic feet per day on approximately 10,000 acres in the Thayer Gas Field, Southeast Kansas. The property will see additional wells drilled next year.
Based upon current gas prices and production levels on the new Petrol-Neodesa property, it is expected to generate gross revenues of about $9.6 million for Petrol in 2005, which would equate to $0.15 operating cash flow per share based on today’s shares issued and outstanding.
“We are very pleased to acquire such an attractive gas property at about $1.14 per Mcf of proved net reserves, given the robust energy market,” said Paul Branagan, Petrol’s President and CEO. “This new property will tie in nicely with our existing Coal Creek CBM drilling program which is already underway.”
Petrol now plans to increase projected revenues through a sustained drilling program in the next fiscal year.
The Petrol-Neodesa property was a cash acquisition in the amount of $10 Million dollars.
“With multiple CBM project areas under production we expect to be a much better balanced company and able to provide linkage between all our Cherokee Basin CBM properties. Cash flow from our Petrol-Neodesa and Coal Creek properties will allow us to continue to invest in drilling programs, increase production and make additional acquisitions without relying upon external financing,” added Mr. Branagan.
Forward looking Statements:
The statements in this press release regarding any implied or perceived benefits from the acquisition of the Thayer gas field properties, plans to drill additional CBM gas wells, anticipated revenues, the acquisition of additional oil or gas leases, maintaining mineral lease rights, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or gas, continued maintenance of the oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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