HOUSTON, TX--(Marketwire - July 18, 2007) - Petro Resources Corporation (
Williston Basin, North Dakota
The North Grano Madison Unit (NGMU) #9 well in the North Grano Field has been successfully drilled, completed and put on production. The well, located in Renville County N.D. was drilled to a depth of approximately 5,500' with a 1,700' lateral. The initial production rate was 70 barrels of oil per day. The Company has 48.73% working interest in the well. NGMU #9 is the second well drilled in the North Grano field subsequent to successful water flood re-pressurization of the field.
The NGMU #10 well is scheduled to begin drilling operations shortly and is planned for a final depth of 5,800'. The Company has a 48.73% working interest in this well and expects this to be the final well in the development of the North Grano Unit for production by secondary recovery efforts.
The total current daily production from the North Grano Field is approximately 145 barrels. This represents an approximate 700% increase in daily production when compared to production rates prior to beginning water flood efforts.
The Holbrook #14-16H well in the West Greene Field, Renville County N.D. has been drilled to a total measured depth of 9,021' including a horizontal lateral in the Mississippian Bluell formation of approximately 2,700' in horizontal reach. Completion operations have commenced and the Company is encouraged by initial results. The Company has a 46.25% working interest in the well and expects that the well will be on production prior to the end of the month.
The Company has an approximately 43% working interest in 15 fields in the Williston Basin. Five of the fields are in various stages of water flood re-pressurization, and the Company anticipates that all 15 fields will eventually undergo water flood operations for secondary recovery. The water flood process re-pressurization can take 2-3 years, after which new horizontal wells may be drilled for enhanced secondary oil production.
Permian Basin
The Cinco Terry A #902 well, operated by Approach Operating, LLC and located in Crockett County, TX, was spud on July 1, 2007. This well will be drilled to a total depth of 9,000' and test both the Ellenberger and Canyon Sand formations. The Company expects the well will be completed, tested and, if successful, turned to sales by mid-August 2007. The Cinco Terry A #902 is the fifth well to be drilled in this prospect with Approach. If the Cinco Terry A #902 is successful the Company expects to drill two additional wells, the Cinco Terry A #904 and Cinco Terry D #701 which are anticipated for the third quarter this year.
Management Comments
Don Kirkendall, President of Petro Resources, said, "The increased production realized from the recently drilled wells in the North Grano Field confirms the effectiveness of water flood re-pressurization, secondary recovery efforts in this particular field and is further affirmation of the Company's larger undertaking of similar operations in the other fields in which the Company has an interest in North Dakota." Mr. Kirkendall went on to say; "Although it can take 2-3 years to re-pressurize a formation for secondary recovery, we believe the increased production certainly justifies the time and effort. Our independent reserve engineering firm estimates that the Company's net production could be as much as 9,000,000 barrels of oil by water flood re-pressurization of the 15 fields in North Dakota."
About Petro Resources
Petro Resources Corporation is independent oil and natural gas company engaged in the acquisition, drilling, development and exploitation of properties located in the continental United States. The Company typically takes significant non-operated positions in both exploratory and producing properties where the operator is a company, either public or private, that has significant experience and technical expertise in the region or basin. Our business strategy allows the Company to maintain a diversified and balanced portfolio of oil and natural gas properties and to manage risk.
Forward-looking Statements
The statements contained in this press release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding the Company's expectations, beliefs, intentions or strategies regarding the future. Such forward-looking statements relate to, among other things: (1) the Company's proposed exploration and drilling operations on its various properties, (2) the expect production and revenue from its various properties, and (3) estimates regarding the reserve potential of its various properties. These statements are qualified by important factors that could cause the Company's actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company's ability to finance the continued exploration and drilling operations on its various properties, (2) positive confirmation of the reserves, production and operating expenses associated with its various properties; and (3) the general risks associated with oil and gas exploration and development, including those risks and factors described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-KSB for the year ended December 31, 2006 and the Quarterly Report on Form 10QSB for the three months ended March 31, 2007. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.