SOURCE: USA Superior Energy Holdings

April 22, 2008 16:12 ET

USA Superior Announces Bateman Field Production Guidance Range of 55,000-65,000 Barrels of Oil for 2008

$4.5 - $5.5 Million in Net Revenues

HOUSTON, TX--(Marketwire - April 22, 2008) - USA Superior Energy Holdings, Inc. (OTCBB: USSUE), a Houston-based energy company ("Company") focused on shallow well enhanced oil recovery (EOR) and drilling of existing proven fields that have been idle or marginally producing, announced the completion of its probable reserve studies for its Bateman and Benton Fields. Mr. Rowland Carey announced: "Based upon our success in the start up of the Bateman Field, we have just completed our revised 2008 budgets to conform to our increased focus on Bateman and our probable reserve valuation study. Additionally, last week we commenced providing quarterly and monthly results on oil production. As a result, we wanted to provide production and revenue guidance for all of 2008. While our 2008 operating plan is predicated on the necessary capital increases into the company in May 2008, our plan includes all capital and operational expenditures necessary to bring up Bateman production as rapidly as operationally possible, such that the Benton field is prepared in the last half of 2008 for a first quarter of 2009 start up. With our focus on accelerating Bateman during 2008, the range of production in the Bateman field for all 2008 is estimated between 55,000 to 65,000 of net production of barrels of oil after royalties. Utilizing our conservative probable reserve net present value sales price of $85 (current short term prices being realized by the company are higher), net revenues should range between approximately $4.5 and $5.5 million."

Mr. Carey further stated, "While this guidance assumes we gain the continued access to capital necessary to maintain our business plan at an operational pace, as we have previously announced, the start up of the Bateman field has been exceeding our expectations. As you can see from the operational plan above, we believe our focus on the accelerated program in the Bateman field for the balance of 2008 will provide substantial shareholder value increase. Our last disclosed sales were at approximately $91 net to the Company and oil prices have increased. Hence, while only the markets will tell us month by month, for the balance of 2008, it is highly likely that our $85 assumption could be low."

The Bateman Field is in Caldwell and Bastrop Counties in Texas, has approximately 88 existing wells on 1,200 acres and is typical of the Company's core focus of field prospects with a shallow field depth of 2,600 feet that has been basically abandoned when economic conditions and older technology did not warrant further investment. As we complete rework and stimulation on the existing wells and commence drilling on the balance of the field, the Company expects the total number of wells in production to increase. We expect to have approximately 111 (103 in 2008 = 15 drills in 2008 + 88 total) producing wells by end of 2009 without additional leases or technology which the Company may utilize to maximize stimulation of this field.

ABOUT USA SUPERIOR ENERGY HOLDINGS, INC.

USA Superior Energy Holdings, Inc. (OTCBB: USSUE) is an oil and gas enhanced recovery (EOR), exploration and production company focused on shallow well oil and gas fields in Texas. USA Superior is composed of a team of seasoned experts in their field, with over 50 man-years of oil and gas and shallow well field experience of reworking, stimulation, finding, drilling, horizontally drilling and well completion operations and production. USA Superior currently owns all of its projects but will joint venture or have working interest relationships when appropriate. To maximize production, USA Superior Energy also provides complementary technologies including specialized work over technologies, shallow well cased hole horizontal drilling applications and the utilization of portable Nitrogen (N2) applications. USA Superior uses these technologies as is appropriate to enhance older oil field business opportunities. Cased Hole Horizontal Drilling (CHHD) is an emerging drilling application that can significantly increase the "communication" from the wellbore to the fluids in the reservoir. Nitrogen (N2) is used to force oil out of reservoirs. It can be applied to existing reservoirs and wellbores, thus minimizing the cost and risk of finding oil and gas. With the current price environment, large blocks of existing older well fields can be rejuvenated into very profitable wells at low cost and high margins with new technology.

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our recent current reports on Form 8-K, our annual report on Form 10-KSB or Form 10-K, our quarterly reports on Form 10-QSB and other periodic and current reports filed from time-to-time with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Tonya L Chadwick
    USA Superior Energy Holdings, Inc.
    (832) 251-3000
    Email Contact