SOURCE: America Resources Exploration, Inc.

America Resources

August 19, 2015 06:00 ET

America Resources Exploration Acquires 950 Acres Oil and Gas Leases in Callahan, Texas

HOUSTON, TX--(Marketwired - August 19, 2015) - America Resources Exploration (OTC PINK: AREN) is pleased to announce that it has acquired two oil and gas leases (called the Snyder leases) on approximately 950 acres located in Callahan County, Texas through its 94% subsidiary the Seabourn Oil Company.

After the acquisition, the company engaged Mr. Randy Chillion, an independent petroleum engineer (previously employed by Amoco/BP for 34 years) to estimate oil and gas reserves for this property. The summarized report is as follows:

Snyder 211 - Shallow Reservoirs
Three reservoirs were evaluated: Strawn, Cross Plains and Cisco. A High Case and a Low Case were evaluated for each reservoir. The difference in the two cases is a change in porosity value. The reserve values are shown immediately below are for 1 wellbore:

     
Pay Zone High Case Reserves, stk bbls Low Case Reserves, stk bbls
Strawn 149,103 85,201
Cross Plains 193,833 110,762
Cisco 318,085 181,763
Total per well 661,021 377,726
   

The project is to consist of a total of 6 wells being drilled.

     
Shallow Pay Zone High Case Reserves Low Case Reserves
Reservoirs Reserves 3,966,128 barrels 2,266,359 barrels
   

Ellenburger Formation Reserves
Ellenburger formation reserves have also been estimated for two sections only (Sections 210 and 211).

     
Deep Pay Zone Section 210, stk bbls Section 211, stk bbls
Ellenburger 232,135 464,271
   

The project is to consist of 2 wells drilled per section.

Total Ellenberger Project Reserves: 1,392,813 bbls

Reserve Estimator's Qualifications
Mr. Chillion has been a Petroleum Engineer for 36 years. Was employed by Amoco/BP for 34 years (Amoco and BP merged in 1999). One of his functions during that time was as a "Certified Reserve Estimator" within BP, meaning that BP deemed that he had sufficient training, experience and expertise to use the reserve estimates he calculated as their official reserves estimates to reporting agencies such as the SEC. He has also worked on numerous field development projects which entailed calculating reserves and determining drilling locations.

Interested investors can visit our website's media gallery section for video footage of the property.

"We are excited about the potential of the Snyder leases, which has now been estimated to have potentially up to 5.3 million barrels of oil. This is exactly the type of project that, if completed successfully, could be a long-term key revenue driver," stated Mr. Huang Yu, CEO of America Resources Exploration, Inc.

About American Resources Exploration, Inc.

America Resources Exploration, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company's growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information visit www.america-resources.com

Forward-Looking Statements

This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give American Resources Exploration's current expectations or forecasts of future events. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of American Resources Exploration to fund the costs of new wells and to obtain financing from other sources for continued development; the costs of operations; delays, and any other difficulties related to producing oil; the ability of American Resources Exploration to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; American Resources Exploration's ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K and the registrations statement for any offerings as filed with the SEC. American Resources Exploration undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. American Resources Exploration's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although American Resources believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.

Contact Information

  • Contact

    Huang Yu
    CEO
    832-390-2273