Message #8 From:
NewsBot Date: October 31, 2005 08:31:00 AM
MVOG News Maverick Oil and Gas, Inc. Issues Update to Its Fayetteville Shale Play in Arkansas
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct. 31, 2005--Maverick Oil and Gas, Inc. (OTCBB:MVOG) (the "Company"), announced today an update to its new Fayetteville Shale play in Northeastern Arkansas. The Company is pleased to announce that it has obtained commitments to lease a total of 82,000 net leasehold acres in the play, the majority of that total in Woodruff and St. Francis Counties. Studies conducted by the Company indicate that the development and hydrocarbon potential of the Fayetteville Shale in this area could be significantly greater than that seen elsewhere in the play. Data published by other operators in the play indicate that development of the Fayetteville Shale is likely to be based on horizontal development wells spaced on approximately 100 acre producing units which could yield reserves in the neighborhood of 1.5 BCF per well.
The Company is still actively acquiring acreage and is confident that it will shortly reach its initial target of acquiring in excess of 100,000 net mineral acres. The Company anticipates that it will commence drilling operations in January, 2006 and will drill an initial series of six to eight test wells. Following full interpretation of data gathered during this operation, it is anticipated that a full development program could be initiated by mid-year 2006.
Additionally, the Company announced that it has tentatively agreed to terms with another industry participant and a private investor to participate in the play, with the Company retaining a 45% working interest in the project. Maverick will operate the project on behalf of its co-venturers.
Finally, the Company announced that it will become operator of that portion of its Barnett Shale project (approximately 1,942 leasehold acres in Wise County, Texas) formerly operated by Reichmann Petroleum, as well as its Whitewater project, effective November 1, 2005. This reflects the next stage in the Company's development as it intends to become the operator in certain of its more material projects.
V. Ray Harlow, Chief Executive Officer stated, "The success of the leasing program in the Fayetteville Shale play is very encouraging and gives the Company an impressive position in this most promising part of the developing play. With the expected commencement of drilling operations early in 2006, the Company will be well positioned to provide significant additional shareholder value." In addition, Mr. Harlow stated, "The acquisition of operations on the Barnett Shale and Whitewater projects will enable the Company to have a more meaningful role in the development of both areas during this period of high product pricing."
We are an early stage independent energy company engaged in oil and gas exploration, exploitation, development and production. We currently participate in these activities through the interests we hold in oil and gas exploration and development projects in Texas and Colorado, as well as a pending project in Arkansas. Our strategy is to continue the development of our existing exploration projects and to expand our operations by acquiring additional exploration opportunities and properties with existing production, taking advantage of the industry experience of our new management team and modern techniques such as horizontal drilling and 3D seismic analysis.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future results, levels of activity, events, trends or plans. We have based these forward-looking statements on our current expectations and projections about such future results, levels of activity, events, trends or plans. These forward looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, events, trends or plans to be materially different from any future results, levels of activity, events, trends or plans expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as guidance, may, will, should, could, would, expect, plan, anticipate, believe, estimate, continue or the negative of such terms or other such expressions. In connection with our announced acquisition of interests and related drilling programs within the Fayetteville Shale play, important factors that could cause actual results to differ materially from our expectations, include but are not limited to: (1) whether we can ultimately close on the acreage position we have targeted, where closing is contingent on a number of factors including securing clear title reports and securing the necessary financing to acquire our interests; (2) whether we will be successful in acquiring commitments on additional acreage; (3) our ability to secure the proceeds necessary to finance our expected drilling program; (4) our ability to secure binding agreements from our partners to co-participate in the funding of the project; (5) whether our partners in the project will be successful in securing the proceeds necessary to finance their portion of the project; (6) whether the actual hydrocarbon content of the project will be consistent with studies we have reviewed and relied upon, in light of the uncertainties associated with the prediction of hydrocarbon level prior to the commencement of drilling; and (7) whether, and to the extent that wells are drilled, we can extract commercial quantities of oil and gas consistent with the expectations stated in this release, or otherwise, particularly in light of the uncertainties associated with the drilling and extraction of oil and gas reserves. With respect to our interests in the Barnett Shale play and other interests mentioned in this release, important factors that could cause actual results to differ materially from our expectations, include but are not limited to: (1) whether long term production results will justify the drilling of additional wells; (2) when such additional wells may be drilled; (3) the ability to drill for and extract commercial quantities of oil and gas, in light of the uncertainties actually associated with the drilling and extraction of oil and gas reserves; (4) our ability to finance our portion of the costs of drilling future wells on these projects; and (5) our ability to secure financing for future drilling and exploration projects. As they pertain to our business, in general, important factors that could cause our actual results to differ materially from our expectations, include but are not limited to those factors disclosed in our Annual Report on Form 10-KSB, our other filings with the Securities and Exchange Commission, as well as our other public documents and press releases which can be found on our web site (www.maverickoilandgas.com). Readers are cautioned not to place undue reliance on our forward looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward looking statements to reflect events or circumstances occurring after the date hereof.
