HOUSTON, TX--(Marketwired - December 21, 2016) - Petrogas Company, Inc. (OTC PINK: PTCO) ("Petrogas Company" or "the Company"), today announced that it participated in a government auction by the Bureau of Land Management ("BLM") and successfully purchased two oil and gas leases in the Eastern States.
More specifically, the company purchased a lease in Washington, OH and another in Monroe, OH. The leases are on a 10-year primary term and the company will pay 12.5% in royalties to the government once production begins.
"We are pleased to have won these government auctions. These leases will be our first in the eastern states and with oil prices at a 12-month high we are looking forward to exploring the potential in this area," cited Mr. Huang Yu, CEO of Petrogas Company.
The total crude oil production in Ohio for 2015 was nearly 22 million bbl and the total natural gas production approximately 950 million mcf mostly produced from the Utica and Marcellus shales.
More than 1,200 wells are operated in Ohio in part by large companies including XTO Energy (an Exxon subsidiary) and Chesapeake.
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.