BEDFORD, Texas, January 24, 2014 /PRNewswire/ --
PetroTech Oil and Gas Inc. (OTC: PTOG) (the "Company" or
Petrotech") today announces the current Brown has recently been
revaluated by a geologist that specializes in the Nowata, Oklahoma area and the company has
initiated an expansion of the original development plan for the
lease. The current evaluation disclosed a well-known
oil-producing zone under the lease. The proposed 18 well
drilling program will also include five of the existing wells to be
converted to injection wells. The company will inject water as well
as gas and CO2 back into the zone to enhance production. It is
estimated that there are 40,000 barrels of recoverable oil under
the lease. The first well scheduled to be drilled next week will
allow the company to test various injection methodologies.
The key to success in this area of Oklahoma is optimizing production from the
many hydrocarbon-bearing zones, which includes the coal seams. With
most wells encountering about a dozen zones that have known
production in this area, the drilling risk is extremely low. Having
this serendipity also extends the production life of wells from
10-12 years to 15-20 years.
Production rates in this area range from 2 to 50 barrels of oil
per day (BOPD) per well with typical results averaging between 5
and 10 BOPD. Initial flow rates can be higher for a short duration
before settling into this range with the quality of crude being
excellent (33° to 42° API oil). Natural gas is the fallback
position in this area due to shallow Excello shale that blankets
the area as do several methane gas bearing coal seams. As such,
natural gas is almost always produced in a well in this area with
production rates ranging from 5,000 to 200,000 cubic feet of gas
per day (5 to 200 MCFD).
Since most of this gas is produced from coal seams, initial
production rates are actually lower and increase over the first few
months because coal seams must "dewater," where water in place in
the coal seam is brought to the surface, freeing up the gas to
begin coming to surface through the well bore. As a result, a
typical scenario would be for a well to produce from a coal seam
and after dewatering for about a month to start giving up its
natural gas. The flow rate of between 950 to 1050 BTU gas will
usually start around 5 MCFD and increases as the water comes off
with most wells settling in around 30-50 MCFD. In PTOG's project
area, there is an estimated 98% completion rate and 100% discovery
of gas, making it one of the lowest risk exploration areas in the
country.
Located in Nowata County,
Oklahoma, this project is situated on the Northeastern edge
of the Northeast Oklahoma Shelf, which has proven to be prolific in
coal bed seams for both methane gas and oil since it was developed
beginning in the early 1990s. The dewatering of the existing
gas wells will be injected back into the Bartlesville production zone to help
facilitate the oil production.
"This recent re-evaluation of the lease adds reserves and new
production we underestimated in our original purchase. We have
acquired this initial 80-acre project with another 480 acres
targeted on the area. We are already seeing increased gas
production from the initial dewatering of the gas wells and expect
favorable result from the newly drilled wells," stated Eddie Schilb, president of PTOG.
About The Nowata Lease:
The key to success in this area of Oklahoma is optimizing production from the
many hydrocarbon-bearing zones, which includes the coal seams. With
most wells encountering about a dozen zones that have known
production in this area, the drilling risk is extremely low. Having
this serendipity also extends the production life of wells from
10-12 years to 15-20 years.
Production rates in this area range from 2 to 50 barrels of oil
per day (BOPD) per well with typical results averaging between 5
and 10 BOPD. Initial flow rates can be higher for a short duration
before settling into this range with the quality of crude being
excellent (33° to 42° API oil). Natural gas is the fallback
position in this area due to shallow Excello shale that blankets
the area as do several methane gas bearing coal seams. As such,
natural gas is almost always produced in a well in this area with
production rates ranging from 5,000 to 200,000 cubic feet of gas
per day (5 to 200 MCFD).
Since most of this gas is produced from coal seams, initial
production rates are actually lower and increase over the first few
months because coal seams must "dewater," where water in place in
the coal seam is brought to the surface freeing up the gas to begin
coming to surface through the well bore. As a result, a typical
scenario would be for a well to produce from a coal seam and after
dewatering for about a month to start giving up its natural gas.
The flow rate of between 950 to 1050 BTU gas will usually start
around 5 MCFD and increases as the water comes off with most wells
settling in around 30-50 MCFD. In PETROTECH OIL AND GAS, INC.'s
project area, there is an estimated 98% completion rate and 100%
discovery of gas, making it one of the lowest risk exploration
areas in the country.
Located in Nowata County,
Oklahoma, this project is situated on the Northeastern edge
of the Northeast Oklahoma Shelf, which has proven to be prolific in
coal bed methane gas since it was developed beginning in the early
1990s. PETROTECH OIL AND GAS, INC.'s properties are surrounded
by leases operated by some of the major players in the field such
as Newfield Exploration, Mid-Continent, Inc. (NYSE:NFX), Energy
Quest Resources and Endeavor Energy. In fact, PETROTECH OIL AND
GAS, INC. Have minority interests in some wells with Newfield
Exploration and Endeavor. This area of northeastern Oklahoma has an extensive drilling history
extending back to the early 1900s.
About PetroTech:
PetroTech Oil and Gas, Inc. uses multiple patent technologies
for Enhanced Oil Recovery and in some cases will use their new
pumping system co developed by PetroTech. We will use this patented
technology with other proven technologies currently used in the
industry to drill, complete equip new drill wells and older wells
with secondary production opportunities. Throughout the United States there are primary depleted
oil reservoirs representing billions of barrels of oil that lend
themselves to the use and exploitation of Enhanced Oil Recovery and
PetroTech Oil and Gas, Inc.'s proven patented technology. Without
EOR technology, these reservoirs will produce only about 20% of
their Original Oil in Place. Gas injection EOR is a proven method
that has been in use over the last 50 years in the oil fields of
West Texas, Kansas, Oklahoma, Michigan, Wyoming and Oklahoma. Starting in the late 1990's we
started researching various EOR methods and sources of gases and
mixtures of gases to find an alternative gas to pure CO2 for EOR.
In doing so, we found that a N2-CO2 mixture was 2-3 times more
efficient than CO2 in the recovery of stranded oil. Recently we
have been introduced to a patented exhaust unit that was more
efficient than regular CO2. A new prototype of that equipment was
then built for injection purposes; and is in the process of being
further developed for commercial use.
We have analyzed the different types of oil producing reservoirs
in most of the major geological basins in the United States and have determined that the
use of our process and method will enhance the recovery of stranded
oil reserves in these areas that otherwise may never be produced.
The pinnacle reefs, other reefs in Texas make excellent reservoirs for EOR
because they are compact, have consistent reservoir properties,
thick pay columns, and are overlain by an impermeable cap seal.
However other formations have responded favorably as well. These
reservoirs represent over 300 million barrels of recoverable
stranded oil using our patented method and technology. CO2 floods
have been successful on the reefs in the US with rates as high as
1000 BOPD. Our process will have a major impact on the recovery of
stranded oil in U.S. basins. This statement is based on the fact
that we have an unlimited source of gas and we do not need an
expensive infrastructure to transport the gas, plus the fact that
it is proven that a mixture of CO2 and N2 is more efficient than
CO2 in some trials.
The cost and recovery of a project will be dependent on size of
structure and depth; the cost will range depending on type of
formation and type of treatment design. Hopefully, per project we
will capture an additional 20% to 40% of oil in place. Attempting
to do this in a period of 5 years as opposed to the original 20% of
oil that has already been produced; which may have taken ten to
twenty years. Each successful project is estimated to have a six to
twelve month payout.
For more information please go to our websites, which can be
found at: http://petrotechog.com
Certain information discussed in this press release may
constitute forward-looking statements within the Private Securities
Litigation Reform Act of 1995 and the federal securities laws.
Although the Company believes that the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions at the time made, it can give no assurance that its
expectations will be achieved. Readers are cautioned not to place
undue reliance on these forward-looking statements. Forward-looking
statements are inherently subject to unpredictable and
unanticipated risks, trends and uncertainties such as the Company's
inability to accurately forecast its operating results; the
Company's potential inability to achieve profitability or generate
positive cash flow; the availability of financing; and other risks
associated with the Company's business. The Company assumes no
obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.
Website: http://www.petrotechog.com
Phone: +1-888-568-7111 Email: info@petrotechog.com
Investor Relations: Gabriel
Rodriguez, E Relations Group, +1-888-261-6537
SOURCE PetroTech Oil and Gas, Inc.
