Message #9 From:
Stock News Bot Date: December 5, 2005 08:36:00 AM
SNRG News SNRG Acquires Lease Interest in South Texas Vicksburg: Starr and Hidalgo Counties
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 5, 2005--SNRG Corporation (OTCBB:SNRG) announces that its wholly owned subsidiary Pan American Oil LLC has exercised the first phase of an option to acquire a 20% interest in 4,000 acres in Starr and Hidalgo Counties, Texas. In this Phase the company has exercised its option to acquire a 7,5% interest from Touchstone Resources Ltd for a purchase price of $3.4 million. The transaction is scheduled to close on or before January 15, 2006.
"This acquisition is the first result of our new initiatives in oil and gas," stated Mr. Fimrite, "We believe that we will exercise the balance of the option shortly and will significantly increase our reserves and production through the further development of this property."
On the southern part of the U.S. Gulf Coast, the Oligocene Vicksburg and Frio Formations contain major petroleum reservoirs in the Rio Grande embayment. This region encompasses both Northeastern Mexico, and Starr and Hidalgo Counties in South Texas. Approximately 400 Vicksburg fields in this trend have produced over 300 million bbl of oil, 30 million bbl of condensate, and 5 trillion cubic feet of gas. Modern 3-D seismic data reveals structural fault traps and stratigraphic pinch-out traps in sands within the Vicksburg formation.
Pan American has an option to acquire a 20.0% interest from Touchstone Resources (USA), Inc. Touchstone has over 4,000 acres of leasehold in the developing play centered on Sullivan City. The first well was the G. L. Richards #1, drilled to 9,074 feet on the northwest flank of the Sullivan City-Sam Fordyce field. The discovery was completed in the Middle Vicksburg Rincon pay sands (5,840-6,150 feet) for over 1 MMCFD. Estimated reserves for the Rincon interval are 1-2 BCFG. Shallower pay exists at the Upper Vicksburg Garza sands (5,050-5,350 feet) and two pay zones in the lower Frio. Since that first well, Touchstone has completed two Rincon development wells, and has completed 6 deeper wells between 8,500 and 12,500 feet. The most recent well, the Frank Yturria #1 encountered several attractive pay zones above 9,300' and completed open-hole (unstimulated) for a rate over 3 million cubic feet per day and 30 barrels of condensate. This well sets up a number of offset locations at depths ranging from 6,000 to 10,000 feet, and may have deeper pay below this wildcat.
"This acquisition is the first purchase resulting from our acquisition of Pan American," stated Mr. Fimrite, "The quality of our management and technical team is demonstrated in the quality of property we are acquiring in this transaction."
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 completion of the purchase of the 7.5% interest in the 4,000 acres in Starr and Hidalgo Counties from Touchstone Resources, Inc. 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.
