American Community Development, Inc.

May 23, 2011 08:01 ET

American Community Development, Inc. Announces the Signing of a Joint Venture Agreement (Farmin) on Up to 35,000 Acres of Oil and Gas Exploration Lands in Union County New Mexico, USA

LAS VEGAS, NEVADA--(Marketwire - May 23, 2011) - American Community Development, Inc. (PINK SHEETS:ACDP) ("the Company") announces the signing of a Joint Venture Agreement (Farmin) on up to 35,000 acres of oil and gas exploration lands in Union County, New Mexico, USA; controlled by High Energy Resources Inc. (Farmor).

The 35,000 acres (54 sections) is part of a large dome structure. Six wells have been drilled on the lands, 35 miles of seismic has been shot, and significant geological data (well logs, mapping, etc.) and geophysical data is available. It is planned to reprocess existing seismic and as well shoot an additional seismic program to pin point well locations for up to an initial 6 well program. Multiple zones have been identified from approximately 500 feet to 4,500 feet in depth, with multiple oil and gas showings. The Farmor will be the operator of the project.

A recent engineering report states that if the sands are oil saturated in the 35 sections higher in the structure, the total oil in place could be 407 MM barrels. Using a conservative estimated recovery factor of 10%, 41 MM barrels could be recoverable. Using an oil price of $100 per barrel, this would equate to greater than a $4,000,000,000 ($4 billion) reserve. Management estimates that individual wells that test commercial could produce in the order of 100 plus barrels of oil per day, and have up to 400,000 barrels of oil in reserves.

The Company will have a 50% working interest in the 6 well program, and will be engaged in financing activities over the coming weeks to fund its working interest position.

Management Comment: "The Company considers itself fortunate to have the opportunity to participate in such a large scale oil and gas play resident onshore in the USA. The combination of continued restrictions on offshore drilling, turmoil in the far east, and surging oil prices (recently over $100 per barrel), all of which affects demand – supply balance; makes this an attractive and timely business opportunity to fast track shareholder value."

About American Community Development, Inc.:

The Company is an emerging junior oil and gas company financially well connected, and will be focused on exploiting oil and gas reserves onshore within the USA. The Company is in the process of assembling a seasoned team of managers and technical professionals in the areas of geology, geophysics, engineering, and legal. The Company is positioning itself for aggressive asset growth and shareholder value enhancement.

American Community Development, Inc.

Edwin Mah, Director

This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended; such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operations to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the Company and its operations, are included on certain forms the Company files with the Securities and Exchange Commission.

Contact Information

  • American Community Development, Inc.
    Edwin Mah