Titan Oil and Gas Acquires Producing Crows Run Oil and Gas Project in Beaver County Pennsylvania
AUSTIN, Texas, Jul 09, 2008 (BUSINESS WIRE) -- Titan Oil and Gas Inc. (Pink Sheets:TNOG) has made the first of its planned acquisitions with the Crows Run Project (CRP) in Western Pennsylvania. CRP represents a significant turning point for the company as it can now claim 27 wells in production as it moves to maintain and rework all 61 wells included in the deal.
Oil production for the previous three years is as follows; 2005 - 846 bbl 2006 - 1,172 bbl 2007 - 654 bbl
The total three-year production was 2,672 bbl, or an average yearly production of 890 bbl. Additionally, the connection of an approximate 300 foot pipeline to Columbia Gas of Pennsylvania will produce over 2,000 MMBTU per month, in its current form, based on 2003 production levels. Included in the acquisition is $55,000 worth ($500,000 initial value) of equipment, a CD used to secure the blanket bond valued at $28,000, a contract to sell oil to Ergon (http://www.ergon.com/main.html) and a Pennsylvania EPA license for the project. The full technical report is available on the website at:
The well sites are located in areas of proven production in Western Pennsylvania. CRP's original estimated reserves were calculated in excess of 13 million bbls in the eighties (see technical report), with very little production to reduce this figure in the interim. The best well produces 5 bbls of oil per day while others produce around 1-2 bbls of oil per week. Since being drilled in the '80s, the wells have had little in the way of maintenance (average rework cost is $5,000-7,000 per well). These production numbers will dramatically improve by simply removing paraffin build up and updating pumpjacks.
Other improvements will be made with the application of modern stimulation and enhancement techniques that compound production increases. Titan estimates that with simple maintenance, wells producing 1-2 bbls a week would move to that same figure per day as well as bringing online many that have been choked into nonproduction. Titan management looks at this as a first step in its acquisition plan that will include the use of a special preferred share class, which will be presented and described in the business plan as well as at the annual general meeting to gain stockholder approval in the coming months.
According to Titan Oil and Gas President Brandon Toth, "What we have with Crows Run is a project that can bring us current production but promises something much more enduring. This is really a low risk endeavor with current producing wells that have never been fully exploited. There are significant reserves of oil that can be accessed with simple maintenance. We will also be working with a technology partner that can enhance these wells for much lower prices than were paid just five years ago using a directional water jet that breaks right through surrounding formations. This technology lessens the impact on the environment."
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Titan Oil and Gas Signs Green Project Acquisition Agreement Following Release of Business Plan Titan Has Signed an Acquisition Agreement for a Green Project Which is Subject to the Pending Proxy Vote Sep 5, 2008 8:30:00 AM Copyright Business Wire 2008 Email Story Discuss on ZenoBank
AUSTIN, Texas--(BUSINESS WIRE)--
Titan Oil and Gas, Inc. (Pink Sheets:TNOG) has signed an acquisition agreement for an operational revenue-generating closed-loop green project in the Pacific Northwest. Due to the nature of the agreement, Titan will not be able to release extensive detail or the name of the Company until the proxy has been approved. The acquisition will include a merger into a Titan majority-owned subsidiary (subject to acquisition) whereas additional working capital will be raised.
The acquisition will include city contracts for delivery of bio solids, several real estate properties where the nonpetroleum fertilizer (bio solids) will be deposited, a trucking company which currently has the city contracts to transport the bio solids, the energy crops that were just harvested including Camelina which has been contracted by British Petroleum (NYSE:BP), and the installation of up to 138 wind mills on one of the properties to join the wind farm already housed in the Columbia River Gorge. Assets currently booked by the Company prior to the acquisition of the Trucking Company exceed $1.7 M.
The release of Titan's revised business plan reflects its focus on sustainable expansion regarding oil and gas as well as environmentally friendly renewable projects. The plan's release was timed to coincide with finalizing the letter of intent regarding this environmentally friendly income-producing project. The project will need a final positive vote for the creation of the preferred shares so that the final terms of the agreement can be met by Titan Oil and Gas. The plan describes the need for an expansion of authorized capital so that Titan can follow through with this renewable energy project.
We will soon be making available the proxy to all of our stockholders. The weight of your proxy will depend on the amount of shares you hold as of the record date, 09/15/08. The proxy will be made available on the homepage, www.titanoilandgas.com. If you have any questions regarding the proxy or need to provide your contact info to receive the proxy, please do not hesitate to contact management for any clarifications.
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