Petrol Oil and Gas, Inc. (OTCBB: POIG) announced today that it has completed Phase I of its Field Enhancement Program that increased production by about 425 Mcfd or about 18%. The primary objectives of Petrol's Phase I Field Enhancement program were to increase pipeline capacity and implement other system improvements in its Petrol-Neodesha property as a prelude to further field development and production.
"This is the culmination of over 2 months of concentrated field efforts in our Field Enhancement Program that was designed to increase production, improve the capacity and performance of our gas gathering pipeline system and of course add revenue," said Paul Branagan, Petrol's Chief Executive Officer. "Phase I of our development program included adding about 3.5 miles of high capacity gas gathering pipeline and strategically incorporating 2 new booster stations to reduce pipeline pressure and provide a higher level of compressor redundancy. Obviously we are very pleased with the Phase I results and with this expansion of our gas gathering pipeline system that has more than doubled our main line capacity. Petrol is now in a position to implement further development of our existing producing property and assess the acquisition of surrounding acreage."
Petrol-Neodesha is Petrol's Coal Bed Methane (CBM) gas producing property that covers about 10,000 acres in Wilson and Neosho counties, Kansas. Petrol acquired the property in November, 2004 and plans to expand low-risk drilling activities to increase production in the area. Petrol-Neodesha produces from 72 CBM wells and room for an additional 100 drillable locations.
Forward-Looking Statement: The statements in this press release regarding production increases, gas pipeline capacity and improvements to the gas pipeline system whether real or implied, potential revenue increases, any implied or perceived benefits from future development plans, and any other effects resulting from any of the above are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, the continued production of gas at historical rates, costs of operations, delays, and any other difficulties related to producing minerals such as oil or gas, continued maintenance of the gas and oil field and properties, price of oil or gas, marketing and sales of produced minerals, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, competition, general economic conditions, and the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Source: Petrol Oil and Gas