posted
FOREST HILLS, N.Y., September 19 /CNW/ - Native American Energy Group, Inc. (the "Company" or "NAEG") (OTC Pink Sheets: NVMG) is pleased to announce the acquisition of the Beery oil lease. The lease contains the Beery 42-24 which is a stepout from the N.P. No.1 that was initially drilled by Shell Oil. The N.P. No.1 was the wildcat strike that became Shell's "discovery" well for the eastern Montana part of their Williston Basin drilling program that commenced May 10, 1951, and actually marked the beginning of the boom. Other than historic value, NAEG's team of geologists had identified the Beery Well and the Richey Field, on which it is located, as strategically important acquisitions that will enhance the position of the Company, according to thorough data assessment and geological evaluation performed. The Company has agreed to reactivate the entire Richey Field. The Richey Field was discovered by Shell Oil with completion of the Beery 42-24. Shell drilled a total of 12 wells in this field of which 10 wells were completed with flowing rates between 200 to 2600 barrels of oil per day. The Beery 42-24 was the best well in this field with an initial flow potential of 5,378 barrels of oil per day. By 1960, Shell Oil sold the field to independent operators due to problems dealing with the accumulation of paraffin. The operators attempted to deal with the paraffin problem by applying hot oiling methods to demulsify the wax. Such methods used to provide very high production for short periods of time and then plugged up the production again. The operators were lucky to keep these wells pumping a fourth of the time with increased workover rig operations, hot oiling, equipment repairs and heavy expenses. The operators finally abandoned the field in 1995. NAEG's proprietary, enhanced recovery technology has been very successful with paraffin. The last two wells completed in August had similar paraffin problems. After the treatment, the paraffin was cleared up and the there was a 1200% increase in production on the first well and 1500% on the second well. The Company plans to enhance and reactivate these wells using the same treatment.
Acquisition Program
NAEG management is currently focused on an acquisition program, targeting oil & gas wells that were shut-in or abandoned that still contain ample reserves and are deemed suitable for revitalization, and other quality oil and natural gas leases in the Williston Basin area of Montana. The Company's immediate goal is to achieve sustainable oil production growth and strong cash-flow for the Company prior to the arrival of Montana's colder winter months.
Comments from Joseph D'Arrigo, President and CEO
Native American Energy Group's President and CEO, Joseph D'Arrigo commented, "As many of you know, field operations led by P.E. Tony Johnson and our Enhanced Oil Recovery Operations team have already resulted in the successful revitalization and completion of the Tribal 7-A and Cox 7-1 wells located on the Fort Peck Indian Reservation (as reported on August 22), and these situations are beginning to cash flow and aid us in our expansion. Although we have our work cut out for us, the Board of Directors wishes to convey confidently that many such opportunities as the Beery Lease containing substantial recoverable reserves will prove out for us and be beneficial toward reaching our production goals." There is an interesting 1953 article from a Montana newspaper containing the background of the historic Beery Well entitled, "Shell Brings in Best Well In Richey Oil Territory" as well as a magazine story entitled, "A Life in the Oil Patch" which mentions the Shell NP No.1 that readers are directed to view at the links below.
Safe Harbor Statement: This News Release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities & Exchange Act of 1934, as amended, with respect to corporate objectives, projections, estimates, operations, acquisition and development of various interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
