Platina Energy Estimates Initial Production at 10,000 Barrels per/mo for its Young County Lease
Friday , July 20, 2007 18:34ET
CHEYENNE, Wyo., Jul 20, 2007 (BUSINESS WIRE) -- Platina Energy Group, Inc. (OTCBB:PLTG) (Frankfurt:O5Y), is pleased to announce that upon completion of the 35 well joint venture program in Young County, initial production to Platina's interest could top 10,000 barrels of oil per month. According to a third party report, total production over 11 years is estimated to be 28,000 barrels per well. At current prices, net revenues to Platina's interest could exceed $750,000.00 per month. Young County is a highly defined shallow well prospect located in West Texas.
"This field includes currently producing wells and proven reserves potentially worth millions of dollars according to independent data," stated Mr. Blair Merriam, CEO and President of Platina Energy Group, Inc. "Using an extrapolated version of the average pay-zone information from the area, and according to a third party report, estimated initial daily production should range from 20-50 barrels per day per well. Also, advancements in recovery technology may be able to increase well productivity by 150-200% or more. Our internal estimates are based on initial production of 35 barrels per day before decline curve amortization."
The Company's development plan for the Young County Lease will be implemented in two phases. Phase one, which encompasses the initial development of approximately 20 well sites, has been committed through a third party joint venture agreement with Zone Petroleum, a third party energy finance Company. The first well permits have been issued and drilling is expected to commence before the end of July 2007.
Phase two of the development plan, which also calls for the development of approximately 15 additional well sites, is presently available to third party investors in conjunction with the primary agreement with Zone Petroleum. The cost to drill and complete these wells under the current guaranteed production program is just under $5 million.
About Platina Energy Group
Platina is an E & P Company that owns several oil and gas lease properties in Texas and Tennessee. The Company is currently producing oil from one field. It also owns oil and gas leases for proven and unproven reserves for which it is in the process of obtaining drilling permits. Additionally, Platina owns rights to a German inspired, proprietary oil recovery technology that allows for the cost effective recovery of certain types of untapped reserves that exist through out the world.
Information contained herein may contain forward-looking statements which are not guarantees of future success or that there cannot be losses. The actual presence or recoverability of reserves for optimal and timely recovery, well costs or schedules or other matters cannot be promised. This release contains "Safe Harbor" provisions of the US Private Securities Litigation Reform Act of 1995 & involves risks and uncertainties, which could cause actual results to differ materially from those estimated herein.
Platina Energy believes the forward-looking statements are based on current reasonable assumptions but can give no assurance that results will be achieved. Unpredictable & unanticipated risks, trends and uncertainties including inability to accurately forecast operating results; the potential inability to achieve profits or have cash flow; access to financing; and other must be understood.