HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- EnDevCo, Inc. (OTC Bulletin Board: ENDE), the Energy Development Company, today announced an agreement to purchase 100% of all rights in the West and Central Units of Short Junction Field located in Oklahoma City, Oklahoma. The 12,000 acre leasehold is fully unitized and is comprised of 19 active wells that are currently producing 121 barrels of oil per day from the Hunton limestone reservoir and 400 mcf of gas per day from the Red Fork sand reservoir. The purchase includes a total of 270 well bores of which approximately 40 will ultimately be reactivated and includes full ownership rights to a field wide gas pipeline and gathering system that offers two independent taps to the interstate gas transmission system. At current prices, the Company projects its cash flow from the project to be $7,500 per day or approximately $225,000 per month from the 19 active wells. The Company recently advanced a $500,000 non-refundable deposit and will select debt financing being offered from several financial institutions to complete the purchase prior to December 01, 2005. Immediately thereafter, an aggressive well recompletion program that is designed to increase daily oil production to over 240 barrels/day and 2,250 mcf of gas/day over the next 12 months will begin. Concurrent with the well recompletion program, 3D seismic will be acquired over the field which will be integrated into a full engineering simulation of the Hunton reservoir dynamics. Based on these advanced technical studies, the Company plans to drill horizontal wells for both oil and gas production to fully realize a possible upside potential of an additional 10 million barrels of oil and 10 BCF of gas reserves. This press release includes certain "forward-looking statements". The forward-looking statements reflect the beliefs, expectations, objectives, and goals of EnDevCo, Inc. management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results. Important factors that may impact actual results include, but are not limited to commodity prices, political developments, legal decisions, market and economic conditions, industry competition, the weather, changes in financial markets and changing legislation and regulations. The forward-looking statements contained in this report are intended to qualify for the safe harbor provisions of Section 21E of the Securities and Exchange Act of 1934, as amended. EnDevCo, Inc. is a dynamic and growing energy company establishing an identity consistent with its business development activities. EnDevCo maintains offices in Houston and Dallas, Texas. For more information on EnDevCo visit http://www.endevcoinc.com . SOURCE EnDevCo, Inc.
Contact Information: Chris A. Dittmar, CEO of EnDevCo, Inc., +1-713-977-4662, or cdittmar*endevcoinc.com
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Think this has enough to get back to 52 wk high of .08? That's some pretty big numbers for them...and a low number O/S
Posts: 421 | From: Florida | Registered: Mar 2005
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This should be a for sure morning gapper. Anyone decide to hold until tomorrow besides me?
Posts: 421 | From: Florida | Registered: Mar 2005
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