KOKO Petroleum, Inc.

KOKO Petroleum, Inc.

April 06, 2006 15:51 ET

KOKO Announces Corsicana Re-work Project and Production Results for its Barnett Shale Wells

LAS VEGAS, NEVADA--(CCNMatthews - April 6, 2006) - KOKO Petroleum, Inc. (PINK SHEETS:KKPT) -

KOKO Petroleum, Inc. announced today that its operator for the Corsicana Field, JMT Resources, Ltd. ("JMT") will commence a re-work program on its Pecan Gap wells in the next week. The re-work program will consist of drilling six lateral bore production strings from the existing well bore. This process, known as Radial Jet Enhancement, will utilize high pressure fluids to drill the lateral well bores, which will extend out approximately 350' each.

JMT has contracted with Well Enhancement Services, LLC (www.wellenhancement.com) to perform the rework on its Pierce nos. 14 and 14a. A small sand frac will follow the drilling of the lateral well bores in order to enhance permeability and create larger access to the Pecan Gap reservoir. Total cost of the re-work per well is estimated to be approximately $50,000 USD.

Well Enhancement Services has reported increases in production for wells where the lateral was successfully placed. Average increases are reported to be from 300% to 1000%, which justify the incremental cost associated with the re-work project. Assuming positive results, JMT will re-work the second well, which is adjacent to the first and schedule the rework on its remaining Pecan Gap wells, which currently total 8.

KOKO announces that JMT has completed drilling the 4th pilot well for the Corsicana Flood Project. We plan on drilling 7 production wells and 6 injection wells prior to the implementation of the alkaline-surfactant-polymer technology.

The Company also has working interests in two Barnett Shale wells and plans on participating in more wells in the next 90 days. Production summaries for the existing wells are as follows:

The Boyd #1 began recording revenue on January 30th and, as of April 4th, has sold 4,334 barrels of oil and 20.8 Million cubic feet of gas. Ultimate recovery and reserve estimates have not been engineered as of this date, however, the operator feels that, based on initial production (IP) and current well-head pressures, the well will payback its working interest investment in a relatively short time frame.

The Inglish 2 began recording revenue on February 16h and, as of April 4th, has sold 422 barrels of oil and 1.33 Million cubic feet of gas. This well has had several mechanical problems down hole which has caused the operator to shut-in the well for extended periods of time. However, the operator, Rife Energy Operating, is still optimistic about the production capabilities of this particular well because it is recovering approximately, 100 barrels of water per day which was injected from the frac.

"We are pleased to participate in the re-work program with our partners in the Corsicana Field. We feel the Pecan Gap zone has large quantities of remaining oil in place that could be accessed with the implementation of cutting-edge technologies like the Radial Jet Enhancement Program. We are very satisfied with the Boyd # 1 well, which is performing as expected. We expect that the mechanical difficulties will be eliminated and that the Inglish 2 will be a success. We continue working with our partners to help us build a productive oil & gas operation," says Mr. Ted Kozub, President of KOKO Petroleum, Inc.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.

Contact Information

  • KOKO Petroleum, Inc.
    Andrea Bleasdale
    Investor Relations
    Toll Free: 1-888-740-7276