Message #11 From:
Stock News Bot Date: December 13, 2005 07:53:00 AM
SNRG News SNRG Options Interest in Barnett Shale
SCOTTSDALE, Ariz--(BUSINESS WIRE)--Dec. 13, 2005--SNRG Corporation (OTCBB:SNRG) announces that its wholly owned subsidiary Pan American Oil Company LLC has acquired an option to purchase a 1/8 (12.5%) interest in approximately 5,550 acres in the Barnett Shale, and plans to participate in a contiguous 10,500 acre block.
Project Drilling Program
The purchase will include a 1/8th interest in the eleven (11) horizontal wells that have been drilled to date. Three wells are currently drilling. The initial well, the Tritt, has been fraced and is producing and cleaning up at an initial rate of 1.7 mmcfg/d. The plan for the initial phase is to drill 36 horizontal wells in 2006. The most important facet of this project is that the operator has retained access for 3 drilling rigs for 3 years. This is possibly one of the most significant factors in the Barnett Shale play, as rig shortage causes a delay in investment, production and cashflow. A number of competitors are faced with expiring leases because they can't acquire drill rigs to validate their leases. Once the wells are drilled and completed, facilities must be built and pipelines installed before the wells are stimulated and put on production.
"The Company is pleased to have the opportunity to participate with Reichman Petroleum Corp., in this project," stated Mr. Fimrite, "The co-investors in this project include Neumin Production Company, (a subsidiary of Formosa Plastics Corporation), Kerogen Resources, Inc. and Wynn-Crosby Energy, Inc. (now merged with Petrohawk Petroleum Corporation). The high caliber of these participants reflect the quality of this project."
Barnett Shale Profile
The Barnett Shale reservoir in the Fort Worth basin was first discovered and developed by Mitchell Energy in 1981. The Mississippian silts and shales were deposited in a faultbound trough at depths between 7,000 and 9,000 ft. The Fort Worth Basin was formed on the southwestern flank of the Ouachita Over-thrust, and depositional patterns reflect the north-south trend of the basin axis. The aerial extent of the Barnett Shale is estimated to be 4,200 square miles. The play thickens from less than 100 feet in the west, to nearly 1,000 ft to the northeast. The shale displays local variations in physical and geochemical properties that are important in drilling, completing and stimulating the formation. The Barnett Shale is a black, siliceous source rock with 4-10% organic carbon content and no free water. The estimated total gas content is 100 BCF/sq mile.
"The combination of a well situated property with three rigs drilling continuously creates a unique and significant premium on this investment" stated Mark Bush, CEO of Pan American, "We believe that this will be a long term and profitable investment with very rapid capital recovery."
For additional information, please visit our Web site at: www.SNRG.net. Please note the new corporate address and contact numbers below.
Corporate Offices:
14300 N Northsight Blvd, Ste 227
Scottsdale, AZ, 85260
Tel: 480-991-2040
Fax: 480-991-2203
Forward-Looking Statements: This news release contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the successful exercise of the option to purchase a 1/8 (12.5%) interest in approximately 5,550 acres in the Barnett Shale, plans to participate in a contiguous 10,500 acre block, the initial phase of drilling 36 horizontal wells in 2006 and the Barnett Shale having an estimated total gas content is 100 BCF/sq mile. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with oil and gas exploration; changes in reserve estimates if any; the potential productivity of our properties; changes in the operating costs and changes in economic conditions and conditions in oil and gas production and exploration and the unproven nature of alternative energy technologies and its commercial viability. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2004 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
