SOURCE: Bayport International Holdings, Inc.
TULSA, OK--(Marketwired - Oct 17, 2013) - Bayport International Holdings, Inc. (OTC Pink: BAYP). Today we are pleased to announce the signing of a Letter of Intent to purchase an interest in 5 oil wells located in the Scott Lease, Venango County, Pennsylvania.
The LOI is for the purchase of 15.0% WI and 11.25% NRI to be acquired in each of the five wells, permit numbers 1,2,3,4 and 5.
The approximately 52 acre lease is on the Scott Lease north east of the town of Oil City, Pa. This area has always been prolific in the production of oil and natural gas. The preliminary target zone for wells on this lease will be the Venango sands. The Venango Sands formations are the Red Valley, Lytle, 1st Sands, 2nd Sands, 3rd Sands Stringer, 3rd Sands and 4th Sands. These oils and gas bearing formations are found throughout this immediate area and historically have been good producers. All zones should be encountered at drilling depths of approximately 900-1300 ft., depending upon the elevation.
Well records found in the vicinity show the presence of these formations on and near the lease. This lease is off-set on all sides by operating oil and gas wells, owned and operated by various independent operators.
Pennsylvania has been acknowledged as the birth-place of the oil and gas industry since Edwin Drake drilled the first commercial oil well near Titusville in 1859. Prior to the invention of the internal combustion engine the primary usage for crude oil was as lamp oil and medicines. Soon after the finds in the Venango County area early drillers moved out into the surrounding counties of Butler, Bradford, Forest, and Warren of northwestern and central Pa. With the early technology available these drillers searched and found oil in the relatively shallow sandstone formations of the Venango Sands groups. Some of these early wells blew out at over 10,000 bbl. of oil per day. The drive that forced this oil out at such high rates was the natural gas that was also present. Before a market was found and pipelines were built much of this natural gas was wasted, being vented or flared to atmosphere. The intense market demand for crude oil created a boomtown history that reviled anything in the gold fields of California. Spin-off industries such as transportation, refining and paraffin extraction created a job bases that lasts today. Up until the mid-1930's this region of Pa. was the world's leading exporter of oil. The majority of these early wells were drilled to a depth less that 3000 ft. Success rate of wells drilled in this known region of Pa. has been approximately 95%. Drilled and production operations have continued in this region. The factor for drilling activity in this region has always been the market value of the oil and gas. The lowest risk and greatest potential from drilling successful wells is to pursue development drilling activities. This is to drill new wells within the proven boundaries of previous activity.
The target production for oil and gas in western Pennsylvania is the Upper Devonian sediments in the Appalachian Basin. These blanket like productive zones extend in a range in northeast-southwest zone extending from western New York into western Pa., eastern Ohio, and West Virginia. These depositional sediments are a result of erosion of mountain ranges to the east and near shore beach and shallow sea environments that existed during the Devonian Age, approximately 400 million years ago. These shallow sea depositions are known as the Chemung Facies. The shallow sea that existed at that time teemed with flora and fauna, whose decomposed bodies would eventually, under time and pressure, become the petroleum we seek today.
During this time of geological chaos this was a continuing uplift and with pressures exerted by colliding landmasses these shallow water sediments were compressed into the sandstone reservoir formations that contain the petroleum reserves. Layers of other types of impermeable rocks were subsequently deposited and acted as a cap rocks to help trap the petroleum within the sediments. This process was repeated many times thus creating an almost layer-cake effect of multiple producing zones of porous sedimentary, petroleum bearing formations, trapped within more impermeable formations of shale, chert, or limestone. It is these lenticular, multiple layered zones of sandstone from which oil and gas is found. Within these shallow multiple sandstone formations are found over 500 oil and gas fields, which have produced, over time, 1.3 billion barrels of oil and 9 trillion cubic feet of gas.
With the rare exception, the days of the big gushers are a thing of the past. While most of the oil and gas remains trapped in the reservoir rock the easy production was obtained and in many cases historically squandered. Drilling and production methods of the early days were to drill to the targeted formation and either produce the wells through natural flow or stimulate the formation by setting off charges of nitroglycerine. Availability of extractible petroleum is a function of porosity, permeability, and size of the formation. (See Terms and Definitions) Modern techniques in drilling, logging, and hydro fracturing can help to maximize return returnable production.
Company & Shareholder Structure:
The company understands the creditability and responsibility to maintain an adequate share structure and build a strong shareholder base. With this in mind and the obvious steps that Bayport International Holdings, Inc. is taking to become SEC Fully Reporting and up list to a higher standard of trading for our shareholders. We will not raise the Authorized Capital in 2013.
About Bayport International Holdings, Inc.:
Bayport International Holdings, Inc. is a company formed to exploit the various precious minerals in the U.S. to acquaint the public with practical investment opportunities in strategic metals and minerals. Bayport International Holdings, Inc. is primarily focused on precious metals, rare earth, and oil and gas ventures. Bayport International Holdings, Inc. is developing mining and oil and gas properties with economic potential with the aim of bringing such properties to commercial production. The company's portfolio of properties is primarily located in the USA in Utah, Texas and Pennsylvania.
Cautionary Note Regarding Forward-Looking Statements:
This press release and the statements of representatives of Bayport International Holdings, Inc. (the "Company") related thereto contain, or may contain, among other things, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including any other statements of non-historical information. These forward-looking statements are subject to significant known and unknown risks and uncertainties and are often identified by the use of forward-looking terminology such as "guidance," "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "ultimately" or similar expressions. All forward-looking statements involve material assumptions, risks and uncertainties, and the expectations contained in such statements may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results (including, without limitation, Bayport's ability to advance its business, generate revenue and profit and operate as a public company) could differ materially from those stated or anticipated in these forward-looking statements as a result of a variety of factors, including factors and risks discussed in the periodic reports that the Company files with OTC Markets (Pink Sheets). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.