SOURCE: PetroTech Oil and Gas, Inc.

February 13, 2014 08:45 ET

PetroTech to Resume Drilling Operations After Weather Shutdown

BEDFORD, TX--(Marketwired - Feb 13, 2014) - PetroTech Oil and Gas, Inc. (OTC Pink: PTOG) (the "Company" or "PetroTech) announced today it is once again operational in its Enhanced Oil Recovery (EOR) project on the Brown lease in the Bartlesville zone in northeast Oklahoma. Harsh weather conditions throughout the Midwest in the first half of February forced a temporary shutdown in the Company's drilling operations. Cement casing will be poured on Thursday, and hopefully shoot the well a few days after if the weather holds out. Production is back online, and despite the most difficult winter in ages, the project is on-schedule with 4 Phase I wells currently producing gas at 40 MCF per day, and 18 additional Phase II wells forecasted to be operational in the coming months. Current production follows a successful revitalization program including all access roads, tank battery and well sites; repair or replacement of all electrical systems; installation of a triplex injection pump for proper wastewater disposal; and completion of a Manual Integrity Test (MIT) required for state inspection approval.

"Our teams' commitment to keeping this project on schedule, despite the extremely difficult winter, demonstrates why we are quickly becoming a leader in the stranded oil recovery market," states the Company's President, Eddie Schibb. "With our infrastructure now in place and our Phase I wells producing, we move into Phase II where we will use our proprietary injection methods to triple gas production, and pressure up the oil zone to support 18 additional wells."

The Bartlesville zone is a sandstone layer that sourced up to 53,000 barrels of oil a day during its peak production in the late 1900s. While concentrated production efforts by major oil companies has depleted some of the oil and much of the gas drive, geological data supports that much of the oil is still in place but will not move to the producing well bores without some type of energy input. According to Kim Drew, Consulting Geologist with CAVU Energy Services, Inc., "Recent core data of these old Bartlesville fields indicate that only 10 to 30 percent of the original oil in place has been produced by the initial production and years of slow pumping. The shallow depth of the sand and lack of any drive mechanism has caused from 70 to 90 percent of the oil to remain in place."

For supporting photos, videos and the geological findings report, please go to our website which can be found at: http://petrotechog.com

About the Bartlesville Zone:

Production rates in this area range from 15 to 50 barrels of oil per day (BOPD) per well, with typical results averaging between 5 and 10 BOPD. The quality of crude is excellent (33° to 42° API oil). Natural gas is the fallback position in this area due to shallow Excello shale layer and methane gas bearing coal seams. As such, natural gas is almost always produced in a well in this area with production rates ranging from 5,000 to 200,000 cubic feet of gas per day (5 to 200 MCFD).

Since most of this gas is produced from coal seams, initial production rates are actually lower and increase over the first few months because coal seams must "dewater," where water in place in the coal seam is brought to the surface freeing up the gas to begin coming to surface through the well bore. As a result, a typical scenario would be for a well to produce from a coal seam and after dewatering for about a month to start giving up its natural gas. A flow rate of between 950 to 1050 BTU gas will usually start around 5 MCFD, and increase as the water comes off with most wells settling in around 30-50 MCFD. In PetroTech's project area, there is an estimated 98% completion rate and 100% discovery of gas, making it one of the lowest risk exploration areas in the country.

Located in Nowata County, Oklahoma, this project is situated on the Northeastern edge of the Northeast Oklahoma Shelf, which has proven to be prolific in coal bed seams for both methane gas and oil since it was developed beginning in the early 1990's. The dewatering of the existing gas wells will be injected back into the Bartlesville production zone to help facilitate oil production.

About the Brown Lease:

The key to success in this area of Oklahoma is optimizing production from the many hydrocarbon-bearing zones, which includes the coal seams. With most wells encountering about a dozen zones that have known production in this area, the drilling risk is extremely low. Production rates in this area range from 2 to 50 barrels of oil per day (BOPD) per well with typical results averaging between 5 and 10 BOPD. Initial flow rates can be higher for a short duration before settling into this range with the quality of crude being excellent (33° to 42° API oil). Natural gas is the fallback position in this area due to shallow Excello shale that blankets the area as do several methane gas bearing coal seams. As such, natural gas is almost always produced in a well in this area with production rates ranging from 5,000 to 200,000 cubic feet of gas per day (5 to 200 MCFD).

Since most of this gas is produced from coal seams, initial production rates are actually lower and increase over the first few months because coal seams must "dewater," where water in place in the coal seam is brought to the surface freeing up the gas to begin coming to surface through the well bore. As a result, a typical scenario would be for a well to produce from a coal seam and after dewatering for about a month to start giving up its natural gas. The flow rate of between 950 to 1050 BTU gas will usually start around 5 MCFD and increases as the water comes off with most wells settling in around 30-50 MCFD. In PetroTech's project area, there is an estimated 98% completion rate and 100% discovery of gas, making it one of the lowest risk exploration areas in the country.

Located in Nowata County, Oklahoma, this project is situated on the Northeastern edge of the Northeast Oklahoma Shelf, which has proven to be prolific in coal bed methane gas since it was developed beginning in the early 1990's. PetroTech's properties are surrounded by leases operated by some of the major players in the field such as Newfield Exploration, Mid-Continent, Inc., Energy Quest Resources and Endeavor Energy. PetroTech has minority interests in Newfield Exploration and Endeavor Energy.

About the Company:

PetroTech Oil and Gas, Inc. uses multiple patent technologies for Enhanced Oil Recovery (EOR), and, in some cases, will use their new pumping system co-developed by PetroTech. Throughout the United States, there are primary depleted oil reservoirs representing billions of barrels of oil that lend themselves to the use and exploitation of Enhanced Oil Recovery and PetroTech Oil and Gas, Inc.'s proven patented technology. Without EOR technology, these reservoirs will yield only about 20% of their original oil reserve. Gas injection EOR is a proven method that has been in use over the last 50 years in the oil fields of West Texas, Kansas, Oklahoma, Michigan, Wyoming and Oklahoma. Starting in the late 1990's, PetroTech began researching various EOR methods to find an alternative gas to pure CO2 for EOR. In doing so, the Company discovered that a N2-CO2 mixture was 2-3 times more efficient than CO2 in the recovery of stranded oil. PetroTech was introduced to a patented exhaust unit that was more efficient than regular CO2, with a prototype of that equipment being built for injection purposes and being further developed for commercial use.

PetroTech has analyzed the different types of oil producing reservoirs in most of the major geological basins in the United States, and has determined that the use of our extraction methods will enhance the recovery of stranded oil reserves in these areas that otherwise may never be produced. The pinnacle reefs, other reefs in Texas make excellent reservoirs for EOR because they are compact, have consistent reservoir properties, thick pay columns, and are overlain by an impermeable cap seal. However, other formations have responded favorably as well. These reservoirs represent over 300 million barrels of recoverable stranded oil. PetroTech's patented method and technology has the potential to have a major impact on the recovery of stranded oil in U.S. basins. This statement is based, in part, on the fact that there is an unlimited source of gas, an inexpensive infrastructure to transport the gas, and data that supports that a mixture of CO2 and N2 is more efficient than CO2, in some trials.

The cost and recovery of a project will be dependent on size of structure and depth, and will range depending on the type of formation and treatment design. Company forecasts project it will yield an additional 20% to 40% of oil in place, in a period of 5 years. Each successful project is estimated to have a six to twelve month payout.

For more information please go to our website, which can be found at: http://petrotechog.com

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