KOKO Petroleum, Inc.

KOKO Petroleum, Inc.

October 20, 2005 09:25 ET

KOKO Petroleum Inc.: Corporate Update

LAS VEGAS, NEVADA--(CCNMatthews - Oct. 20, 2005) - KOKO Petroleum Inc. (PINK SHEETS:KKPT) announced today that is has funded the first phase of the Redevelopment Program for its Corsicana Project with JMT Resources, Ltd. Fort Worth, Texas. KOKO will participate in the Development of JMT's Corsicana Field, which will implement Enhanced Oil Recovery (EOR) technologies on its 4,000 acre leasehold located in Corsicana, Texas.

The primary EOR technology to be applied to the Field is an alkaline-surfactant-polymer (ASP) flood. This technology has proven to be very effective in partially-depleted fields, especially with shallower Fields that typically inhibit the effectiveness of the more common EOR technologies. This technology essentially "pushes" fluid to the well-bores instead of creating a pressurized environment that would cause the oil to move. Pressurizing mature fields has been problematic in the past and the ASP flood avoids many the issues surrounding re-pressurization.

The Redevelopment Program will commence operations immediately and focus on plugging wells in the Pilot Project Area. JMT has indicated that the initial drilling will occur within 30 days. Due to the time it takes to engineer the ASP flood, which can only be done after the first wells are cored and analyzed, JMT has indicated that the actual flood will take up to 6 months to implement, however, all of the wells drilled will immediately be put into production and generating revenue.

Texas Railroad Commission field rules state the requisite spacing on the Corsicana Field is 2 acres. The KOKO/JMT polymer flood program could potentially involve 1000 producing and 1000 injection wells on the property.

Ted Kozub, President and CEO of KOKO stated, "We are very excited to get this project off the ground and feel that it has the potential to create enormous value for our shareholders. We have structured an agreement that allows to us to participate in the upside of this great field while mitigating our downside risk and thus protecting our shareholders from any loss in value."

In 1988, Tejas Petroleum Engineers prepared an engineering study on the field that estimated the original amount of oil in place in the Corsicana Field was approximately 24,000 barrels of oil per acre. JMT's current acreage block therefore contained 95 million barrels of original oil in place, of which approximately 13% has been produced.

Geological engineering studies have shown that an effective ASP flood could yield as much as 30% to 40% of the original oil in place with lifting costs below $7 per barrel.

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