SOURCE: Century Market Research

February 24, 2012 08:00 ET

Reworking Wells, a Profitable Endeavor

Note to Editors: The Following News Coverage Is Issued by Century Market Research

NEW YORK, NY--(Marketwire - Feb 24, 2012) - In a Forbes article from January of this year on the reworking of old oil wells and the success of Energy XXI (EXXI), it highlights how even a long producing well can be discarded by one of the giant oil producers like Exxon Mobil (XOM) and reworked for a profit. Energy XXI is not alone, several other oil and gas exploration companies, like Lucas Energy (LEI) and AER Energy Resources (PINKSHEETS: AERN) are using this model.

The article highlights how a tract of old wells, some producing upwards of 50 years were discarded by Exxon and reworked, resurveyed and are now producing 1500 barrels of oil per day. With oil prices still at or above $100 per barrel, this is becoming an increasingly lucrative way of exploring and extracting oil.

As the Washington Post article from yesterday highlights, "The U.S. remains the world's biggest oil consumer, but government data show that demand is growing the most overseas in developing countries like China." This, along with tensions in oil producing countries like Iran, could make the model of reworking older wells a more common practice among smaller exploration companies.

Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. We accept no liability for any losses arising from an investor's reliance on or use of this report. This report is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. A third party has hired and paid Century Market Research twelve hundred and ninety five dollars for the publication and circulation of this news release. Certain information included herein is forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. Such forward-looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. We have no ownership of equity, no representation; do no trading of any kind and send no faxes or emails.

Contact Information