- Plans for 6 Well Drilling Program Commence on Newly Acquired Texas Gulf
Coast Property -
HOUSTON, Oct. 31 /PRNewswire-FirstCall/ -- Petrogen Corp.
(OTC Bulletin Board: PTGC), announced today that on October 29th, 2005, the
Tiller Ranch # 1 well (the "TR#1") was spudded, the first well in a drilling
program which marks the beginning of Petrogen's Texas Gulf Coast operations
winter drilling season initiative.
The Company's Tiller Ranch Field lease (the "Lease") is located within Tom
Graham Field, Jim Wells County, Texas, which has produced over thirteen
billion cubic feet of natural gas (13 Bcfg) from twenty-five distinct sands as
well as six million eight hundred thousand barrels of oil (6.8 Mmbo) from six
sands. Extensive subsurface control, provided by approximately twenty-five
wells located on or adjacent to the Lease, indicate that potentially up to 18
Bcfe of natural gas reserves could be recovered through the development of up
to six new wells, which the Company plans to complete during Q4-2005 through
to Q2-2006.
On October 13th, 2005 the Company's field crew staked the location for the
TR#1 and commenced location preparations as well as installation of the
various support infrastructure necessary for the drilling program. On October
27th, 2005, Nopolitas Drilling, LP's drilling rig was mobilized to location
and the TR#1 was spud shortly thereafter. The Company anticipates that the
TR#1 will take 10 days to drill to a depth of approximately 6,000 feet,
targeting the upper Vicksburg and Frio gas-bearing formations. Subsequently,
an extensive testing and completion program is expected to be implemented.
Five additional locations on the Lease have been mapped to follow the
potential successful drilling and evaluation of the TR#1.
Petrogen's Chairman and CEO, Sacha H. Spindler stated, "We're very pleased
to start developments at Tiller Ranch. The property provides for an excellent
potential follow-on natural gas discovery opportunity and development platform
to our other recent successes in the Texas Gulf Coast, which could
significantly extend our current operations."
The Lease consists of potential natural gas exploitation opportunities
trapped along a north-south striking, underdeveloped, low relief anticline.
Eight previously producing wells were drilled and produced on the Lease during
the 1940's and 1950's when local natural gas prices were in the $0.02 -- $0.10
per Mcf range, resulting in limited exploitation of the natural gas reserves
on the Lease due to the sub-economic take away prices. However, wells in the
area have average production histories of approximately eight to ten years
with cumulative production of approximately 3.0 Bcfg per well, which could
provide for substantial increases in Petrogen's natural gas reserves and daily
production.
Extensive natural gas gathering infrastructure exists within the area
providing for immediate transportation and sales of any potential upcoming
natural gas production anticipated from the drilling program. Current gas
prices for potential production from the Tiller Ranch area are in the $11.00
-- $11.50 per Mcf range and will be sold into the Enterprise Products Partners
natural gas pipeline system in South Texas.
Mr. Spindler further stated, "Tiller Ranch is another example of the
caliber of opportunities Petrogen strives to develop in the Texas Gulf Coast.
It possesses significant geologic data and well control along proven
hydrocarbon-producing trends that enables the Company to greatly reduce its
geologic risk while increasing its degree of confidence that the 18 billion
cubic feet of indicated potential reserves could be readily exploited through
our current drilling initiatives."
About The Texas Gulf Coast
Texas and the Texas Gulf Coast represent one of the premier natural gas
exploration and development regions in the world, accounting for 32% of all
natural gas production and 27% of proved natural gas reserves in the United
States. Over the past few years, several large discoveries by Shell, BP and
Chevron Texaco have contributed to the growing prominence of the Gulf Coast
region as a hotbed for the expansion of domestic natural gas developments.
About Petrogen
Petrogen Corp. is a Houston, Texas based upstream energy company
specializing in the development of natural gas properties in the Texas Gulf
Coast region with known hydrocarbon reserves. For further information, please
visit the Company's website at http://www.petrogencorp.com.
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 AND EXCHANGE ACT OF
1934, AS AMENDED, WITH RESPECT TO ACHIEVING CORPORATE OBJECTIVES, DEVELOPING
ADDITIONAL PROJECT INTERESTS, THE COMPANY'S ANALYSIS OF OPPORTUNITIES IN THE
ACQUISITION AND DEVELOPMENT OF VARIOUS PROJECT 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.
Company Contact
Louis J. Fruchier
V.P. Corporate Development & Communications
Petrogen Corp.
888-875-1155
fruchier@petrogencorp.com
SOURCE Petrogen Corp.
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Related links:
http://www.petrogencorp.com
CONTACT:
Louis J. Fruchier, V.P. Corporate Development
& Communications, of Petrogen Corp., 1-888-875-1155,
fruchier@petrogencorp.com
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