United American Petroleum Corp. (OTCBB:UAPC.OB) is
pleased to announce that we rigged up on the staked Gabriel
#16 location in Bastrop County, Texas, and spud the
well December 18, 2011. Currently, we have drilled to a total
depth of 3,060 ft. United's main objective in this well is the
Serpentine formation, which is anticipated to be encountered
throughout the next 140'. United is utilizing a workover rig and
industrial compressor to "air drill" the last 140' of anticipated
payzone (Serpentine formation) in an effort to maximize production,
while minimizing potential zone contamination typically encountered
in conventional drilling methods with mud. The well will be drilled
to a total depth of 3200'+/- to test the Serpentine mound, which is
prolific in the area. In a 4 county area, within a 200 mile radius
to the east of Austin, Texas, there are more than 35 Serpentine oil
fields.
Ryan Hudson, United's Chief Operating Officer stated, "Drilling
of the Gabriel #16 well has commenced and is progressing as
expected. We are currently ahead of schedule and are anticipating
significant production results. To date, we have reached a depth of
3,060' and expect to complete the well to a total depth of 3,200'
in January, 2012. To date, we have seen encouraging signs of
hydrocarbons (oil shows) through data obtained from mud logging the
well throughout the drilling process. This means we could not only
encounter our main objective in the Serpentine formation, but could
as well have other potential payzones of interest within the
Gabriel #16 wellbore that can be explored at a later time."
Geology Background
The Serpentine is a mineral derived from underwater volcanoes 65
million years ago in the Austin Chalk seas. Molten lava was
injected underwater into the chalk sediment, instantly reacting
with and vaporizing the water. The Serpentine is green in color,
heavily fractured, with physical properties much like talc, and has
nearly the same chemical composition. These volcanic mounds are
discreet, individual cone-shaped mounds ranging in size from 300 to
1,200 acres, and are 200 to 600 feet thick on the crest. Due to the
explosive nature of their deposition, these mounds are highly
fractured with porosity ranging from 0 to 37%, with an average of
24%, and permeability ranging up to 570 md. from the core.
We believe our understanding of the composition and
characteristics of these rocks allows United to utilize precision
and extremely sensitive magnetic detection instruments that can
detect and record minute variations in the earth's magnetic field.
The combination of this geophysical survey, along with conventional
well logs, helps to allow us to identify and properly locate these
Serpentine mounds with over 95% accuracy.
Production History
The first mound, Thrall field, was discovered in 1915 at a depth
of 800', and produced over 2.3 million BO from primary production
before becoming depleted from 427 acres. Another mound, Lyton
Springs, discovered in 1925, produced over 9.8 million BO from
primary production from 1,385 acres.
Initial well production was high, averaging hundreds of barrels
of oil per day, but quickly declined to typically 20% to 40% of the
initial production rate per month. Well life is generally less than
2 to 3 years under primary recovery, however, it has been proven
that under correct enhanced recovery, wells can produce for up to
30 years at significant sustainable rates.
Reserves Production
Probability
The oil production in Serpentine fields was published by Humble
(Exxon) in 1963, concerning its Hilbig Field, Bastrop County,
Texas. The Hilbig Field recovered over 6.6 million BO from 300
acres with an average Serpentine thickness of 152' thick, or 142 BO
per ac. ft. (acre foot =1 acre, 1 foot deep).
Using the same oil recovery ratio as Hilbig of 142 BO / ac. ft.,
United's estimate would exceed 4 million barrels of recoverable oil
on its Bastrop County lease. We believe this estimate is in line
with other pressure data that indicates there could be up to 2 to 5
million barrels of recoverable oil. Over 160 acres were identified
with good magnetic signatures, which could have Serpentine zones
greater than 150' thick, and 72 acres were identified where the
Serpentine formation could be greater than 200' thick. Based on
these estimates, full field development will require the drilling
of at least 15 wells to recover this volume.
We believe each well is expected to recover up to 225,000 BO, of
which 26,500 BO will be from primary recovery, and the remaining
198,500 BO due to pressure maintenance. Two or three compressors
will eventually be needed to fully pressurize the field, with each
compressor having an output pressure of 1,500 psi.
For additional information regarding the Company's operations,
projects, management team and other valuable information, please
visit the Company's web site at www.unitedamericanpetroleum.com. To
be placed on the Company's master email list and receive future
press releases, progress reports and developments, please send an
email to ir@unitedamericanpetroleum.com or contact the Company at
+1 855-PETROL-1
About United
American Petroleum
Corp.
United American Petroleum Corp. is an independent exploration,
development, acquisition, production, and operating company
engaged in advanced exploration, drilling and completion
techniques to explore for, produce and develop domestic oil
and natural gas reserves. The Company's strategy
centers on increasing shareholder value through actively
pursuing and developing high-potential acquisitions for drilling
and production while maintaining a prudently managed balance
sheet. The Company's main current projects are in
Texas, however, additional acquisitions may encompass active
plays throughout the United States.
The United American Petroleum logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8834
Forward-looking
Statements:
This press release contains forward-looking statements (as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended)
concerning future events and the Company's growth and business
strategy. Words such as "expects," "will," "intends," "plans,"
"believes," "anticipates," "hopes," "estimates," and variations on
such words and similar expressions are intended to identify
forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to have been correct. These statements involve known and
unknown risks and are based upon a number of assumptions and
estimates that are inherently subject to significant uncertainties
and contingencies, many of which are beyond the control of the
Company. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are
not limited to, changes in the Company's business; competitive
factors in the market(s) in which the Company operates; risks
associated with oil and gas operations in the United States; and
other factors listed from time to time in the Company's filings
with the Securities and Exchange Commission. The Company expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United
States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. We use
certain terms in this press release, such as "probable,"
"possible," "recoverable" or "potential" reserves among others,
that the SEC's guidelines strictly prohibit us from including in
filings with the SEC. Investors are urged to consider closely the
disclosure in our Annual Report on Form 10-K and our other filings
with the SEC.
CONTACT: United American Petroleum Corp.
Barry Gross
+1 855-PETROL-1
ir@unitedamericanpetroleum.com
info@unitedamericanpetroleum.com
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