Contact Information: Contact: Brad Holmes Investor Relations (713) 654-4009 Don Kirkendall President (832) 369-6986
Petro Resources Provides Operational Update
| Source: Petro Resources Corporation
HOUSTON, TX--(Marketwire - June 18, 2008) - Petro Resources Corporation (AMEX : PRC ) ("the
Company") provides an update on operations in North Dakota and Louisiana.
North Dakota
The Company has completed the drilling phase of its first horizontal well
in the East Flaxton Madison Unit. The EFMU#23H well was drilled to a total
vertical depth of 5,780' and a total measured depth of 10,310' including
approximately 4,000' horizontal lateral drilled through the Nesson
formation. The horizontal portion of the lateral had mud log shows through
most of its length as was anticipated. A completion rig will be moved on
location to commence swabbing and completion operations shortly. The
Company anticipates that the well turned to sales by mid-July. This is
the first enhanced recovery well drilled in the East Flaxton Madison Unit
which is the second of the Company's oil fields in North Dakota to become
substantially fully re-pressurized by water injection.
The Company anticipates drilling similar horizontal wells in the Mohall
Madison Unit later this year. Mohall has also been successfully
re-pressurized and will be the Company's third such field to reach this
stage in secondary recovery operations.
The Company anticipates that drilling operations will commence within the
next week on the Emmel 10-3 well which will be the first deep test drilled
on the Newporte prospect. The well site location has been built and rig
loads are now arriving. Drilling operations on the Newporte prospect have
been delayed due to a rig move from Canada and extremely wet weather
conditions. Once drilling operations have begun the Company expects it will
take 30-40 days to reach total depth. The main object for the well is the
Deadwood Sandstone at approximately 10,000' and the well will also test
other multiple horizons including the Red River and Bakken formations.
Louisiana
The Pine Pasture #2 well in the East Chalkley field in Cameron Parish
Louisiana was spudded on June 12, 2008 and drilling operations are ongoing.
The well is operated by Centurion Exploration of Houston, Texas. The
Company expects that the well will reach total depth of 9,600 feet by the
end of June. If the well is commercially successful, production will
commence through existing production facilities minimizing the time to turn
the well to sales.
New Hedges
During the second quarter of 2008, the Company purchased crude oil put
options for 100 barrels per day in 2009 at a strike price of $110 per
barrel.
Management Comments
Mr. Don Kirkendall, President of Petro Resources, said: "We are very
pleased with our current level of activity and results from the EFMU#23H
well. We also remain very enthusiastic about the deep Newporte prospect
even though we are experiencing weather related delays in getting the rig
to location." Mr. Kirkendall went on to say: "The East Chalkley
development prospect looks very good to us and may be the first of several
wells in the field if the results of the first well are as we expect."
About Petro Resources
Petro Resources Corporation is an independent exploration and production
company engaged in acquisitions of exploratory leases, acquisitions of
producing properties, secondary enhanced oil recovery projects, exploratory
drilling, and production of oil and natural gas in the United States. For
more information, please view our website at www.petroresourcescorp.com.
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 expected 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-K for the year ended
December 31, 2007 and Form 10-Q for the quarter ended March 31, 2008. 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.