SOURCE: Pluris Energy Group, Inc.

July 15, 2008 08:00 ET

Pluris Energy Provides Cerro Negro Concession Overview

VANCOUVER, BC--(Marketwire - July 15, 2008) - Pluris Energy Group Inc. (OTCBB: PEYG) ("Pluris Energy" or the "Company") is pleased to provide its shareholders with a detailed overview of the Cerro Negro concession following the Company's announcement on July 9, 2008 regarding its wholly owned subsidiary, Pluris Sarmiento Petroleo SA executing the definitive purchase and sale agreement with Clear SRL of Comodoro, Rivadavia, Argentina pursuant to the Company's acquisition of a 75% operated interest in the Cerro Negro concession, Chubut Province, Argentina.

Located approximately 120 kilometers from Comodoro Rivadavia, the Cerro Negro concession comprises a total of 45,982 acres (186,000 square kilometers) of oil and natural gas exploitation areas containing two key producing fields: the Cerro Negro Field and the El Lago Field. The Cerro Negro concession is located in the prolific San Jorge basin in southern Argentina, adjacent to fields which have been highly productive for many decades. Original exploration wells on the concession were drilled by YPF in 1956 and 1966, with the first discovery wells drilled and completed in 1986. Currently, a total of 10 wells are producing an average of approximately 160 barrels of oil per day, a function of limited and dated geologic analysis and under-development of the concession. Advantageously located with respect to existing production from geologic structures that extend on to the Cerro Negro concession and combined with Pluris Energy's recent state-of-the-art three-dimensional (3D) analysis and interpretation have led to the identification of an outstanding opportunity set for extensive long-term field development which is anticipated to be realized through management's commitment to an aggressive exploitation program throughout the Cerro Negro concession targeted for commencement in the fourth quarter of 2008.

The Cerro Negro concession, which is adjacent to and immediately north of the 100,000 barrel per day Cerro Dragon property operated by Pan American Energy, consists of significant exploitation potential over a broad area of the concession in the Lower Bajo Barreal formation, the structure of which is an extension of the northern plunge of the producing horizon in the Anticlinal Grande Norte Field at Cerro Dragon. Management of the Company believes that the reservoirs in the field can be typical of other fields in the San Jorge basin, with productivity increasing in a manner substantially proportional to the number of wells drilled. This is the case with neighboring Cerro Dragon, a mature field which is one of the most productive in Argentina due to massive drilling and favorable reservoir conditions resulting in an extensive long-term development platform that provides significant ongoing daily oil production.

Development potential has been delineated on the Cerro Negro concession through two and three dimensional seismic data, which the Company has undertaken extensive analysis of in conjunction with analysis of well control data from the concession and surrounding producing fields and through third party engineering analysis of the overall concession potential. Three dimensional seismic data, which currently covers approximately 2/3 of the overall concession area delineates numerous discrete fault-bounded structures and potential stratigraphic trapping mechanisms. From its detailed geologic, geophysical and engineering analysis the Company has determined that a total of greater than 250 new well locations are available to be drilled and completed on the Cerro Negro field in a series of development phases that can be undertaken over a number of years.

New well drills on the Cerro Negro field are planned by the Company as operator in three phases to exploit oil reserves of which the Company estimates to be 8.4 million barrels of oil equivalent in the P1 category, and an additional 10.0 million barrels of oil equivalent and 9.3 million barrels of oil equivalent in the P2 and P3 categories, respectively. The El Lago field produces oil from one discovery well which commenced production in 2004. Management of the company believes that extensive P2 and P3 development reserve potential exists on the El Lago field and surrounding areas, currently estimated by the Company to be approximately 3.9 million barrels of oil equivalent, which can potentially be exploited through drilling approximately over 40 new well locations. Gaffney Cline & Associates from Houston, Texas, were retained by the Company, whereby a reserves certification was provided to the Company based upon its submitted capital expenditure program for the Cerro Negro development program.

Due to the vast size and attractive geologic attributes of the concession, significant exploration and development potential exists in seven additional identified structures as well as the upside of having other potential reservoir targets. Other exploration opportunities exist throughout the remaining 1/3 of the concession that have yet to be determined through 3D seismic data gathering or engineering analysis. As development of the known reserve areas of the concession are undertaken by the Company as described, the Company intends to evaluate all exploration potential over other unexplored and/or under-explored areas of the concession and primarily, in deeper geologic formations which have recently been proven in fields adjacent to the Cerro Negro concession to possess substantial deep oil reserves and daily production.

The Cerro Negro concession possesses all required oil gathering, treatment and storage facilities on location, where current oil production is trucked from the concession to its sales and distribution point. Existing facilities are capable of managing daily production increases of up to 1,900 barrels of oil production per day in their current configuration. Plans include extensive expansion of the facilities as the development of the concession is undertaken by the Company to increase storage and take away capacities to accommodate as much as 9,000 barrels of oil production per day.

Management of the Company looks forward to providing shareholders of the Company with additional information about developments of the Cerro Negro opportunity set, as well as other business developments the Company is currently developing.

About Pluris Energy

Pluris Energy Group Inc. is an international energy company engaged in the acquisition and development of producing oil and gas interests in South America. For further information, please visit the Company's website at www.pluris.com

Forward-Looking Statements

This news release contains "forward-looking statements." Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among others, the expectation and/or claim, as applicable, that: (i) the Cerro Negro concession possesses exploration and development opportunities that could result in the development and production of marketable quantities of oil; (ii) the financial closing of the Cerro Negro acquisition will complete and/or will be completed; (iii) the Company will be able to raise the necessary capital to complete the financial closing of the Cerro Negro acquisition and to develop the Cerro Negro concession; (iv) measurable quantities of oil will be produced from the Cerro Negro concession due to its geologic location; (v) the Cerro Negro concession provides for outstanding oil exploration and development opportunity sets that provide for long-term field development; (iv) the Cerro Negro concession can be expected to possess the same productive characteristics as the Cerro Dragon concession or other oil bearing/producing concessions in vicinities adjacent to, contiguous with or geologically similar to the Cerro Negro concession; (vii) the geologic formations in the Cerro Negro concession possess significant oil exploitation potential; (viii) oil bearing reservoirs exist in the Cerro Negro concession that could react in ways similar to other oil producing concessions in the San Jorge Basin; (ix) the potential productivity of the Cerro Negro concession can increase in a manner substantially proportional to the numbers of wells drilled; (x) the two and three dimensional seismic data, well control data and engineering analysis can be relied upon as a conclusive means of determining the potential oil development viability of the Cerro Negro concession; (xi) any new well drills undertaken on the Cerro Negro concession can result in productive oil wells capable of producing marketable quantities of oil; (xii) the Cerro Negro concession possesses oil reserves; (xiii) significant exploration potential exists over areas of the Cerro Negro concession; (ivx) analysis by the Company of the other exploration areas on the Cerro Negro concession will result in potential areas of future oil development opportunity sets for the Company; (vx) deeper formations in the Cerro Negro concession, although contiguous with those of other fields in the area, will possess any development potential resulting in any oil production development possibilities; (vxi) the Company will have the financial means to increase the existing infrastructure on the Cerro Negro concession; and (xvii) daily production from the Cerro Negro concession can be increased through the development plans undertaken by the Company.

It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (i) the continued demand for oil and gas; (ii) the failure to complete the acquisition of the Cerro Negro concession for whatever reason, (iii) the failure of the Cerro Negro concession in the ability to be developed to the extent that it profitably generates commercially viable quantities of hydrocarbons; (iv) the failure to raise proceeds necessary to complete the Cerro Negro acquisition and intended development platform over the Cerro Negro concession; (v) the accuracy of the predicted reserves for the Cerro Negro concession; (vi) the uncertainty of the requirements demanded by environmental agencies; (vii) the company's ability to raise debt or equity financing for operations, inability to maintain qualified employees or consultants, and the likelihood that no commercial quantities of oil and gas or new energy sources are found or recoverable. For more risk factors about our company, readers should refer to risk disclosure in our recent forms 10-KSB and 10-QSB filed with the SEC on Edgar.

Contact Information

  • Company Contact
    Louis J. Fruchier
    604-607-1677