Agrotech Greenhouses Inc.

February 10, 2010 09:00 ET

Agrotech Greenhouses Inc.: Drilling Program Commenced on Greater Joe Mill Project, Land Acquired in World-Class Oil Play in the Prolific Bakken Shale, and Management Changes Announced

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2010) - Agrotech Greenhouses Inc. (to be renamed Archer Petroleum Corp., the "Company"), (TSX VENTURE:AGV.H) is pleased to announce the Company has reached a significant operational milestone with the commencement of drilling operations in the Greater Joe Mill Project, located within the highly-prolific Permian Basin of West Texas. Additionally, the Company is pleased to announce its entry into a world-class oil play focused in the prolific Bakken Shale, successfully being developed by industry in North Dakota.

Drilling Commences in the Greater Joe Mill Project Area

The Company is delighted to announce that the first well, the Hull #1 (25% W.I.), in the Greater Joe Mill Project has been spud and is scheduled to drill to a total depth of 8,500 feet. The Hull #1 will be testing the prolific Spraberry and deeper Wolfberry formations. If successful, the Company and its partners believe the well could be completed and on sales sometime in late March or early April of this year. 

It is expected that a total of four (4) new wells will be drilled within the project area this year. Additionally, the Company and its partners have identified over twenty five (25) low-risk drilling locations on both 80-acre and 40-acre spacing on the existing acreage. Significant upside exists beyond these initial locations and it is expected to further delineate this potential upon completion of the scheduled 4 initial wells. 

The Greater Joe Mill Project area is comprised of over 4,700 gross mineral acres located in the Southwest portion of Borden County Texas and is on trend with the established Spraberry and emerging Wolfberry oil play, which extend over a nine county area in West Texas. This trend is a stacked multi-play, conventional and unconventional oil play with outstanding economic potential. The play is being actively drilled by several notable, large industry players. Wells are productive in the trend from intervals between 6,000 and 10,000 feet, where zones are designated as Spraberry, Dean, Wolfcamp, and Strawn (collectively Wolfberry). There are currently over 200 public and private oil companies focused in this trend producing from approximately 13,000 wells, making the trend one of the largest oil fields in the United States. 

Acreage Acquired in World-Class Bakken Shale Play

The Company is extremely pleased to announce the Company's entry into the high-potential Bakken Shale play, where its proposed new subsidiary, Contact Oil & Gas USA Inc., recently purchased a 50% working interest (W.I.) in 1,475 gross mineral acres located in Burke County, North Dakota from a large private operator in the region. This transaction marks the first major milestone in the Company's goal of building a world-class energy company focused on oil exploration and development. The Company and its partner will continue to closely monitoring drilling activity in the area and further evaluate this asset to determine the best development scenario. The Company is hopeful that drilling activities could commence on this acreage as early as the fourth quarter of 2010. 

A recent study by the United States Geological Survey of the Bakken Shale estimates up to 4.3 billion barrels of "technically recoverable oil" in place in North Dakota and Montana alone. The Company expects to make the Bakken Shale a major focus area of the Company going forward and is currently evaluating other acquisition opportunities within the play on the U.S. side of the border, where the Company has identified multiple opportunities. 

Management Changes

The Company also wishes to announce that Mr. Victor Barcot has been appointed the Chief Executive Officer of the Company and Mr. Colin Bowkett has been appointed the President of the Company, each replacing Robert McMorran, who remains a director and has himself been appointed as the Chief Financial Officer of the Company.

Mr. Barcot has over 14 years of experience in the oil and gas industry. Over his career, Mr. Barcot has been an advisor to several notable U.S. publicly listed oil and gas exploration and production companies and has previously served on the board of several oil and gas companies. Mr. Barcot's expertise is focused on the upstream exploration and production sector, where he has served as an executive of various public and private oil and gas companies. Additionally, Mr. Barcot was a Director of the Global Oil and Gas Investment Banking Group of Macquarie Bank and has previously worked as an equity research analyst focusing on the U.S. independent exploration and production sector for Credit Suisse, First Boston and Bank of America Securities. Mr. Barcot earned his M.B.A. and B.B.A. in Finance with highest honors from the University of Houston.

Mr. Bowkett brings more than 18 years experience in business development and strategic alliances to the Company. He is a partner in Canadian Nexus Ventures, a private investment firm based in Vancouver, and has facilitated and financed multiple international Oil & Gas, and Mining transactions in both the private and public sector. Mr. Bowkett currently serves on the board of directors or in advisory positions for several private and public entities.

Mr. McMorran is a chartered accountant with over 25 years experience in the mining industry. Mr. McMorran has held numerous board positions and senior officer appointments with various public companies.

Cautionary Statements

Completion of the Company's reactivation as a Tier 2 Oil & Gas Issuer on the TSX Venture Exchange is subject to a number of conditions, including Exchange acceptance, shareholder approval, and completion of the financing. The reactivation cannot close until the required shareholder approval is obtained. There can be no assurance that the reactivation will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Filing Statement being prepared in connection with the reactivation, any information released or received with respect to the reactivation may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.


Colin Bowkett, President

The TSX Venture Exchange has in no way passed upon the merits of the proposed transactions and has neither approved nor disapproved the contents of this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Agrotech Greenhouses Inc.
    Suite 880, 609 Granville Street
    Vancouver, British Columbia, V7Y 1G5, Canada
    (604) 683-7588
    (604) 683-7589 (FAX)