SOURCE: Georgia Exploration, Inc.

February 01, 2007 19:38 ET

Georgia Increases Its Position in Texas Frio Play to 7 Wells

HOUSTON, TX -- (MARKET WIRE) -- February 1, 2007 -- Georgia Exploration, Inc. (OTCBB: GXPL) is pleased to announce that it has increased its position in the Brushy Creek Natural Gas Project in Lavaca County, Texas, by taking a 30.625% working interest in the Brushy Creek V Prospect. The Brushy Creek V Prospect is a two well prospect generated by utilizing newly acquired 3D seismic data. The two new wells will test amplitude anomalies with strong trough over peak 3D seismic expressions.

The Pope No.1 well will test numerous reservoir sands, beginning with a series of stacked Frio amplitudes from depths of 2600 - 2900 feet. This particular sand sequence has proven to be highly commercial as evidenced by the Bishop No.2 well, approximately 1500 feet southeast of the proposed location. The Bishop No.2 has produced in excess of 1.1BCFG and is currently flowing at a rate of 275mcfgpd from a similar sequence of seismic events.

The Goodrich-Delaplain No.1 well will test a high quality 60-acre amplitude anomaly at an approximate depth of 3300 feet. The proposed well location is 2500 feet from the recently completed Goodrich-Langford No. 1 well which encountered 28 feet of pay from 3030-3058 feet and is currently flowing at 240mcfgpd with a flowing tubing pressure of 1260 lbs.. While the two amplitudes are very similar, the techinal data suggest that the Direct Hydrocarbon Indicators (DHI) relative to the Goodrich-Delaplain is thicker and covers a larger area.

Under the commercial terms of the participation agreement, Georgia will pay 35.0% of the total development costs to earn a 30.625% working interest in Brushy Creek V Prospect. The total projected cost of the prospect is $1,350,000.00, of which Georgia will pay its ratable 35.0% to earn its 30.625% working interest. Drilling of Brushy Creek V wells will be a continuation from Brushy Creek IV Prospect which is scheduled for drilling commencement by mid February 2007.

Sam Nastat, Georgia's President, stated, "The recent advances in 3D technology definitely reduce much of the risk in the equation when drilling for oil and gas reserves. Capital investment in high quality projects, such as the Brushy Creek prospects, are exactly what Georgia needs to achieve our desired growth objectives, and enable us to build a crucial foundation for our long term reserve and revenue growth."

This press release may include forward-looking statements. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. For example, the extraction and sale of natural gas from the wells involves a number of costs and risks, which may limit our ability to generate cash flow from the wells, or significantly any anticipated net cash flow. In addition, the business of Georgia Exploration is subject to a number of risks typical of oil and gas exploration and development company including, among other things, the inherent uncertainties associated with oil and gas exploration; laws, environmental, judicial, regulatory, political and competitive developments in areas in which Georgia Exploration operates; and technological, mechanical and operational difficulties encountered in connection with Georgia Exploration's activities.

Contact Information

  • For more information, contact:

    Georgia Exploration, Inc.
    Sam Nastat
    President & Director
    Tel. (713) 355-7001