SOURCE: Worthington Energy, Inc.
SAN FRANCISCO, CA--(Marketwired - Mar 25, 2014) - Worthington Energy, Inc. (OTCQB: WGAS) ("Worthington" or the "Company"), an energy company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, announces that the Company's collaborative efforts with American Dynamic Resources, Inc. ("ADR") will target the Heavy Oil deposits in Southeast Kansas and Western Missouri.
As initially reported on March 12, 2014, Worthington entered into a Definitive Agreement to acquire the oil and gas assets of ADR and Heavy Oil Technology and Intellectual Property from ADR President and CEO, Mr. Charles Adams. As part of that acquisition, Worthington will utilize the Levia Oil Recovery Process developed by ADR to begin recovering the heavy oil reserves in Southeast Kansas and Western Missouri. These reserves are estimated between several hundred million to 75 billion barrels of oil.
ADR has also integrated surfactant formulations for enhanced oil recovery developed by chemists, Christie Lee and Dr. Paul Berger with Oil-Chem Technologies, LLC ("Oil-Chem") in Sugarland, TX. As majority owner of Oil Chem, Mrs. Lee uses her chemist background and 17 years of experience in the industry to help oil companies find innovative ways to recover oil. Dr. Berger is most noted for Roundup® herbicide formulations he developed for Monsanto.
Located in Western Missouri, near the Kansas border, in a bedrock structure known as the Bourbon Arch, nearly 800,000 barrels of oil have been produced since 1960. Recent estimates published by the Missouri Department of Natural Resources for the reserves in the Bourbon Arch are between 1.4 to 1.9 billion barrels of oil. Assuming oil prices of approximately $55 to $65 per barrel, combined with current technology and recovery rates, the estimated value of Missouri's heavy oil is $35 to $42 billion.
The Kansas Geological Survey estimates there are 200 million barrels of shallow heavy oil in southeast Kansas alone. Gaylord Hinshaw, former Chief Geologist for Texaco, and a consulting geologist for ADR, has estimated that there may be as much or more heavy oil in Southeast Kansas as in Western Missouri.
"The Barr Cattle Co. lease near Chetopa, Kansas presents an opportunity for Worthington to capitalize on the integration of field-tested technology developed by ADR and Oil-Chem to potentially begin recovering the billions of barrels of documented heavy oil in the area," said Worthington Chairman and CEO, Charles F. Volk.
"Seventy percent of the world's known reserves are heavy oil, and recovering oil reserves is always a function of price and technology. We cannot be certain about the timing or value of specific breakthroughs however we do know that small incremental improvements add up to large advances over time," stated ADR President and CEO, Mr. Charles A. Adams. "Our commitment to the pursuit of this resource play is unwavering."
Worthington is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Worthington was founded in 2004 and is based in San Francisco, CA.
Certain statements in this press release regarding strategic plans, expectations and objectives for future operations or results are "forward-looking statements" as defined by the Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements, including the risks discussed in the Company's annual report on Form 10-K and the Company's other filings with the Securities and Exchange Commission. Factors that could cause differences include, but are not limited to, history of losses; speculative nature of oil and natural gas exploration, substantial capital requirements and ability to access additional capital; ability to meet the drilling schedule; changes in tax regulations applicable to the oil and natural gas industry; results of acquisitions; relationships with partners and service providers; ability to acquire additional leasehold interests or other oil and natural gas properties; defects in title to the Company's oil and natural gas interests; ability to manage growth in the Company's business; ability to control properties that the Company does not operate; lack of diversification; competition in the oil and natural gas industry; global financial conditions; oil and natural gas realized prices; ability to market and distribute oil and natural gas produced; seasonal weather conditions; government regulation of the oil and natural gas industry, including potential regulations affecting hydraulic fracturing and environmental regulations such as climate change regulations; uninsured or underinsured risks; and material weakness in internal accounting controls. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update the forward-looking statements as a result of new information, future events or otherwise.