Message #14 From:
Stock News Bot Date: July 28, 2006 11:44:00 AM
MVOG News Maverick Oil and Gas Issues Operational Update
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 28, 2006--Maverick Oil and Gas, Inc. (OTCBB:MVOG) today announced the following operational update:
Fayetteville Shale Project
The company has now drilled and tested the first two wells in its extensive company operated Fayetteville Shale project in Arkansas. Both of the first two wells encountered three prospective shale intervals designated the Upper Fayetteville, Lower Fayetteville (Moorefield) and Chattanooga Shales. All three intervals were characterized as thermally mature and with Total Organic Content in the range of 2.5% to 4.6%. Additionally, as expected, the shales were significantly thicker than their equivalents in the western part of the play in Cleburne and surrounding counties. The two wells have proven a significant easterly extension of the known presence of potentially productive shales in the emerging Fayetteville Shale play.
Due to the need to clarify the extent of the shale intervals, a minimum of six exploratory tests are planned. The first of these, the Morris #1-3H well, located some 7 miles west of the two initial test wells, is currently drilling.
Despite the presence of the target formation, we were unable to produce either well after our initial completion attempt, which consisted of fracture stimulating the well utilizing a hybrid slick water foam process, with the Williamson Brothers #1-36H having its lateral placed in the Lower Fayetteville (Moorefield) interval and the Byers #1-3H in the Upper Fayetteville interval. On test, the Williamson Brothers #1-36H produced significant quantities of fresh water (possibly indicative of a mechanical problem) and the Byers #1-3H failed to produce from its original completion interval. Plans for further evaluation and/or remedial activity on these wells are currently being developed.
V. Ray Harlow, Maverick CEO stated, "The company has made significant strides in beginning the evaluation of its Fayetteville Shale Project. We continue to believe there are commercial gas reserves within the play, and we will continue to explore in order to define the limits of the play. The engineering challenges which this play poses are not insignificant, but we believe they are not insurmountable."
Barnett Shale Project
The company has concluded the drilling of its Flowers #1 development well and production casing has been run and cemented. The well is currently being prepared for fracture stimulation which is scheduled for July 31 through August 3, 2006. First production from this well is likely to be during early September, 2006. In addition, the first of a planned three development wells in the non-operated portion of the project has been drilled and fracture stimulation is scheduled to commence on July 25, 2006 with first production anticipated during early September, 2006. A third non-operated development well is currently being drilled and that well will be followed by the last well in the 2006 drilling campaign. By the end of October, all the new wells in this drilling initiative should be on production. Regarding the Barnett Shale area play, Mr. Harlow commented, "We continue to develop the Barnett Shale as this area has a proven record of delivering reserves over several decades. We expect to achieve commercial production in this project and remain optimistic we can further exploit our leasehold through additional drilling operations."
Whitewater Project
Preparation for initial production from the wells previously drilled in the project, as well as plans for a limited drilling program for the remainder of 2006, is nearing completion. It is anticipated that the first sustainable production from this project could occur late in the third quarter of this year followed by an accelerated development campaign in the fourth quarter 2006 and into 2007.
Mr. Harlow added, "The resumption of operations on our now non-operated Whitewater Project in Mesa County, Colorado is in line with our previously announced plans to initiate first production from this exciting play prior to year end 2006. It is likely that the company and its partners will execute an aggressive program to place the previously drilled wells on production as quickly as possible and to drill a significant number of new wells in the coming months."
About Maverick Oil and Gas
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 Arkansas, Texas and Colorado. Our strategy is to continue the development of our current 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 management team and modern techniques such as horizontal drilling and 3D seismic analysis. For more information about the Company, please visit our website at http://www.maverickoilandgas.com.
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 drilling programs, important factors that could cause actual results to differ materially from our expectations, include but are not limited to: (1) our ability to secure an amount of proceeds sufficient to finance our anticipated drilling and development costs, given our currently limited capital resources; (2) our ability to sustain operations for a period of time necessary to implement certain of our development plans, given our currently limited resources; (3) whether drilling efforts can be completed within the time and cost budgets estimated by the company in view of the risks and uncertainties normally associated with drilling projects; (4) whether ultimate production may be achieved, and if so, in a manner consistent with either initial test results or our expectations, given the uncertainties associated with drilling and extraction of oil and gas reserves; (5) whether long term test results will justify the drilling of additional wells; (6) when such additional wells may be drilled; and (7) the ability to drill for and extract commercial quantities of oil and gas. 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 website (http://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.
