GFCI News Grifco International, Inc. Announces Program of 7 Wells in Crockett County, Texas
CONROE, Texas--(BUSINESS WIRE)--Grifco International, Inc. (OTC Pinksheets GFCI) announced today the
exercise of its option for 100% of the working interest (“WI”)
and 75% of the Net Royalty Interest in 208 gas leases located in the
Permian Basin geologic formation in Crockett County, Texas. The Permian
Basin is the 6th largest known producing, proven
and probable recoverable hydrocarbon basin in the world--larger than the
North Slope Alaska USA.
Under the terms of the option, the Company will begin spudding on 7
drill sites in the next 30 days. Each drill site will take approximately
2 weeks to complete. It will take another 2-3 weeks for commercial
production.
The proven reserves of gas in the 208 drill sites are 109 billion cubic
feet based upon an expert geologist report. The closing price of gas on
the New York Mercantile Exchange as of December 8, 2006 was $7.56 per
cubic foot of gas. Cost of the option, drilling and production costs is
estimated at $1.75 per cubic foot.
There are five different pay zones with the first 6 wells targeted in
the shallow pay zone at 5,000 ft. Other pay zones are located in the
geologic formations composed of San Andres; Canyon Sandstone;
Pennsylvanian Strawn Limestone; and Ordovician Ellenburger Dolomite. The
cost of drilling in deeper pay zones is higher than in shallow zones.
The net proceeds from the 7 drill sites will be used by the Company to
expand drilling operations to the remaining 208 drill sites and to
finance the repurchase up to 25,000,000 of its shares in the public
market place.
About Grifco International, Inc.
Grifco International is a leading provider of oil and gas services
equipment, specializing in the conception, architecture, and development
of tools for the coil tubing, wire line, and snubbing industries
throughout the United States, China, Mexico, South America, the Middle
East and Africa. Grifco holds and owns design rights and manufacturing
facilities for producing more than 6,000 products for the oil and gas
industry with more than 150 clients, boasting the biggest names in the
business, including Halliburton, Exxon Mobil Corp, and Schlumberger. For
more information, please visit: www.grifco.org.
Safe Harbor Act
The statements contained in this news release include "forward-looking
statements" within the meaning of Private Securities Litigation Reform
Act of 1995. Although the Company believes the expectations reflected in
such forward-looking statements are reasonable, actual results may
differ materially from those forward-looking statements as such
statements involve risks and uncertainties that can impact the delivery
of, meeting of, or exceeding of such expectations.
