HOUSTON, TX--(Marketwired - December 13, 2016) - Petrogas Company, Inc. (OTC PINK: PTCO) ("Petrogas Company" or "the Company"), today announced that it has acquired a fractional interest in four oil and gas wells located in Roberts County, Texas.
The wells produced a combined daily average of 2,571 MCF of gas and 131 barrels of oil for the 6-month period ending in May. The wells are operated by Unit Petroleum Company of Tulsa, Oklahoma and BP America. Investors may refer to the company's 8-k filing with the SEC for additional details regarding the acquisition.
"We are pleased to close on this acquisition to take full advantage of the increasing oil and gas prices," commented Mr. Huang, CEO of Petrogas Company. "We are optimistic that they will continue to rebound and provide opportunities to increase production. Oil prices are currently at their highest level in more than a year."
The Organization of Petroleum Exporting Countries (OPEC) agreed to reduce oil production by 1.2 million barrels a day for six months starting in January 2017. Non-member producers also agreed to scale back their output by an additional 558,000 barrels per day.
According to the International Energy Agency, Global oil markets will swing from surplus to deficit in the first half of 2017 as OPEC and non-member producers follow through on the agreement to cut supply.
"Oil has gained approximately 17% since the Nov 30th OPEC agreement," commented Mr Huang. "Given the likely uptick in oil prices, we will be strategically positioning Petrogas Company for additional acquisitions in this sector in the coming months."
About Petrogas Company, Inc.
Petrogas Company, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company's growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information investors can visit www.petrogas-company.com.
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give Petrogas Company's current expectations or forecasts of future events. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of Petrogas Company to fund the costs of new wells and to obtain financing from other sources for continued development; the costs of operations; delays, and any other difficulties related to producing oil; the ability of Petrogas Company to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; Petrogas Company's ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K and the registrations statement for any offerings as filed with the SEC. Petrogas Company undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Petrogas Company's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although Petrogas Company believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.