Powder River Begins Drilling in Goliad County
Powder River Basin Gas Corp. (OTCBB:PRVB message board, news, dd, quote), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced it has started drilling in Weesatche Field.
Drilling started on Thursday, February 16th on the J.P. Green #1 well, and is currently at approximately 3200 feet, with a target depth of approximately 4000 feet.
All four Frio sands were encountered between 2300 and 3000 feet as anticipated, and the deeper zone estimated at 4000 feet will be explored. Powder River Basin Gas Corp. anticipates drilling to be completed on February 21 and an open hole log is currently scheduled for 4:00 am on February 22. This will determine at which depth the well will be completed to production.
The Company is scheduled to run pipe on February 22 and 23 with perforation set for February 24 at which time a production test will take place.
This is the first of 14 wells scheduled to be completed on the Goliad project.
Powder River Basin Gas Corp. has also scheduled to move onto the Acadia Parish project in Louisiana the week of February 21, 2006. The Company will be re-working five wells with minor service to the sixth well. This would put nine wells in operation. The service rigs and crew will stay on site to completion.
"We are able to complete our programs in a timely fashion due to our exclusive agreement with Energy Group of America Inc., and the funding has been made available through our marketing program with the Asian Financial Group. I am delighted that Powder River is now in a position to make progress so quickly," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River Begins Development in Goliad County
Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced it has begun development in Weesatche Field, a part of the recently acquired Goliad County, Texas project.
The J.P. Green #1 well is scheduled to be spudded in on the 21st of February. The well is planned to be drilled to a target depth of 4,000 feet, and is expected to take approximately five days to drill. The well will encounter the Frio gas sands at 2300 feet. The incremented cost of exploring the additional 1700 feet is determined to be a sound investment on this first well, as it will prove up the lower zones.
Crews are currently installing the fresh water pits and preparing the well site, while also creating service access for the well completion.
The A.F.E. to complete the #1 J.P. Green well to production is estimated at $177,400 and will be financed through the Asian marketing program.
"We are pleased to begin development of the Weesatche Field, as this is expected to greatly enhance Powder River's oil and gas production," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River Enters into Exclusive Agreement with Drilling and Service Company
Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced it has entered into an agreement with Energy Group of America Inc. to provide exclusive drilling and service rig equipment to Powder River Basin Gas Corp. The agreement also provides roustabout crews and all such equipment as is required for well completion and re-works.
The front end cost to Powder River Basin Gas Corp. is $275,000 payable by $100,000 cash and 500,000 shares of PRVB at $0.35 per share. All operating expenses will be billed on a 30 day contract. Agreement is effective February 15, 2006 for two years, with an additional two year option by mutual consent.
"This is very exciting as Powder River is now in a position to control the well completion schedule without having to experience the long delays often associated with waiting on outside services," stated Brian Fox, Powder River Basin Gas Corp. CEO.
Powder River Completes Springhill Project
Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced it has completed the reworks of the wells on the Springhill, Louisiana project. The project had 20 wells scheduled for re-work and re-completion, of which 18 were producers and 2 salt water disposal wells.
Of the 18 wells, two were determined to be unserviceable and will be shut-in. This leaves a total of 16 producing and two injection wells. All downhole work is completed including the replacement of rods, tubing, pumps and such other equipment as required. All development costs were funded through the Company's strategic marketing program.
The Utility Company is currently setting transformers, meters and electric equipment on the last wells and will be finished within ten days. Two wells are being turned on each day to balance the system without overload.
The wells will pump for approximately 30 to 45 days before the fluid levels stabilize and production levels are constant. Powder River Basin Gas Corp. experienced several delays caused by Hurricanes Katrina and Rita, which created shortages in material, equipment and manpower as well as electricity.
"We are pleased to have this project completed. Along with the installation of modern equipment and the systematic chemical treatment to the wells we expect to maximize production, while working within a conservative controlled operating cost base," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River Completes Purchase of Project, Continues Significant Increase in Properties
Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announces it has completed the purchase of the San Juan project in New Mexico. The well workover program on this property is scheduled to commence in February 2006. These workovers are expected to take approximately six weeks to complete, and will increase production by 130 BOPD.
Based on an independent engineering report completed in September of 2005, the estimated value of proven reserves is:
Undiscounted: $129,566,870
Discounted 10%: $63,693,580
Including proved and probable reserves, the value is estimated at:
Undiscounted: $176,800,000
Discounted 10%: $94,400,000
The Company's portion of the working interest is approximately 5.3 million barrels oil and 8.5 BCF natural gas as stated in the aforementioned engineering report.
Oil was priced at $58.00 per barrel constant and natural gas at $8.93 for 2006, increasing to $9.00 mcf to year 2019.
Powder River Basin Gas Corp. will start drilling an additional 20 wells after the re-works are completed, and expects to be in full production in 18 months, increasing production by approximately 540 BOPD.
The program then includes the drilling of five deeper gas wells to approximately 8000 feet. This is expected to prove up the reserves listed as probable. As stated in the engineering report, these wells have the potential to produce over 3000 mcf of natural gas per day.
This purchase was completed with cash and a commitment to develop the project. No shares or options were granted as part of this transaction.
"We are thrilled to have finally completed the purchase of this property in the San Juan Basin in New Mexico. We can now concentrate on moving forward with the development of this project," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River CEO Featured by EricDavid & Sons, Inc. Company Evaluated as an 'Aggressive Buy'
Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer and acquirer of crude oil and natural gas properties, today announced that the Company CEO Brian Fox was recently interviewed by Plainsboro, NJ based EricDavid & Sons, Inc, a research firm dedicated to evaluating and incubating micro-cap corporations possessing significant growth potential.
Steve Weiss, Senior Analyst for EricDavid & Sons, stated, "This begins our second year of coverage on Powder River Basin Gas Corp. and although shares are up some 200% since our initial coverage in February 2005, we continue to feel that current earnings represent a significant undervalued share price. This, and expected future earnings represent a tremendous investment opportunity for investors interested in both short and long term growth. The value is apparent, not only in the Company's investments but in management's superior ability to attract outside investors. This includes a group of Asian investors who recently committed to help fund new purchases and development properties, and in turn receive a working percentage in such projects. Here at EricDavid & Sons, we feel that the bottom line is that domestic oil is the key to the future of the United States, and with oil prices steadily climbing above $60 a barrel, the future profits for Powder River Basin Gas Corp. could be well above Company expectations."
Powder River Announces Year in Review
Powder River Basin Gas Corp. (OTCBB:PRVB), a revenue generating producer and acquirer of crude oil and natural gas properties, today announces its 2005 Year in Review.
December 18, 2005 marked two years of operations under the current management. Powder River Basin Gas Corp has had a steady increase in revenue and cash flow, as well as a steady increase in the share price. On December 17, 2003, the shares traded at $0.013 per share. Share price increased to $0.08 per share on December 18, 2004, and to $0.245 on December 19, 2005.
This represents an increase of 515% for 2004, and 206% per share for 2005. There were several highs and lows during 2005. However, the Company anticipates a continued growth in 2006.
Powder River Basin Gas Corp. went from zero revenue in 2003 to total revenues for the first nine months of 2005 of $3,100,498 with net earnings of $974,934 or 31% before taxes and non-cash expenses. Fourth quarter earnings and complete results for the entire year will be available in March 2006.
The news for 2005 was headlined by the violence of nature, starting with the tragic tsunami in Asia, and followed by Hurricanes Katrina and Rita in the United States, and throughout the Gulf region.
"Other than being set back by approximately 3 months in our development program, Powder River came out relatively unscathed considering the proximity of operations to these disasters. We are extremely fortunate that none of our employees or associates were destroyed by these natural disasters. Powder River was very fortunate indeed, and we look forward to solid growth in the coming year," stated Powder River Basin Gas Corp. CEO Brian Fox.
President and CEO Brian Fox will be doing another radio and text interview with a New York agency in late January 2006, and will try to address many of the questions currently being asked by investors. Please forward any inquiries to Stephanie Edgemon of Powder River Basin Gas Corp. Investor Relations over the next two weeks, and Mr. Fox will attempt to include as many responses to those as possible in the interview. All upcoming interviews will be posted on the Powder River Basin Gas Corp website at www.powderrivergascorp.com following their completion.
Powder River Announces Update on Recently Purchased Property, First Well Staked for Drilling
Powder River Basin Gas Corp. (OTCBB:PRVB) a revenue generating producer and acquirer of crude oil and natural gas, today announced it has filed the permit to drill the J.P. Green #1 well on the Weesatche project in Goliad County, Texas.
The well will be drilled to a depth of 4000 feet to encounter and develop four stacked Frio Sands. This is the first of the 15 well drilling program scheduled for 2006 on the Weesatche project. Production from the well is estimated to stabilize at 300 to 450 mcf per day which will increase cash flow by approximately $135,000 per month.
Powder River Basin Gas Corp. has been advised that a drilling rig will be available in early January of 2006 with drilling and completion of the well expected in January. Well completion costs are estimated at $300,000 per well on the Frio wells. The remaining 13 Frio wells will be permitted in January, with a target for completion of approximately eight months. The Company expects to start the Wilcox well in September of 2006.
"I am pleased by the progress we are making with the property in Goliad County, Texas. Adding this property to our existing reserves - as well as other projects we are investigating - ensures we will continue our tremendous success in 2006," stated Powder River Basin Gas Corp. CEO Brian Fox.
Recent interviews with the Wall Street Reporter and Corporate Strategies radio can be accessed from the Powder River Basin Gas Corp. website at www.powderrivergascorp.com/press.
Powder River Basin Gas Corp. is active in production and acquisition of crude oil and natural gas.
Powder River Acquires Proven Oil and Gas Reserves, Huge Profits Anticipated
Powder River Basin Gas Corp. (OTCBB:PRVB) a revenue generating producer and acquirer of crude oil and natural gas, today announced it has completed the purchase of an Oil and Gas project in Goliad County, Texas, containing approximately 2500 acres of proven reserves.
An independent engineering report completed on November 21, 2005 shows proven reserves of 776,000 barrels of oil and 17.4 BCF of gas.
Estimated Net Reserves and Income
As Of November 21, 2005
Proved Probable Possible Total
Oil 776,440 3,384,334 0 4,161,340
Gas 17,404,000,000 38,099,330,000 0 55,503,340,000
Future
(in USD) $139,314,270 $381,372,820 0 $520,687,000
Deduct $ 9,831,510 $ 10,645,550 0 $ 20,477,080
FNI $129,482,760 $370,727,270 0 $500,210,030
Discounted
10% $ 77,389,500 $196,791,170 0 $274,189,670
This property immediately adds proven reserves Discounted at P.V. 10% of $77,389,500 to Powder River Basin Gas Corp.'s holdings.
The Company plans to drill 14 wells in the Gulf Coast Frio sand, which is under 4000 feet.
The Frio wells traditionally produce approximately 1,000,000 MCF per day, however operations will choke back each well to between 300 and 450 MCF per day to maximize recovery and the economic life of the project.
One well is planned, after completion of the 14 Frio wells in the deeper Wilcox formation. This is a location which offsets a well completed in the Wilcox on an adjacent property that produced 3500 MCF per day gas, and 300 BOPD.
The project has additional probable reserves and drilling locations which will be studied after the 15 wells are completed.
Drilling on the project will commence immediately following the holiday season, with the first wells expected to be in production by the end of January, 2006. Gas infrastructure is in place.
Due to confidentiality agreements between all parties the price and terms of the purchase will not be disclosed at this time, however it is a cash purchase with no stock in PRVB involved.
"Drilling and development costs will be funded through the Company's marketing agreement, which allows Powder River Basin Gas Corp. to maintain the major interest in the project without debt financing. I'm very excited about the purchase of this property, and I am looking forward to continuing our expansion and increasing our holdings in the end of 2005, and into the New Year," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River Basin Gas Corp. is active in production and acquisition of crude oil and natural gas.
Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Powder River Basin Gas Corp. (OTC Bulletin Board:PRVB)
Powder River Basin Gas Corp.
Stephanie Edgemon
Investor Relations
(602) 466-2422
powderriverir@aol.com
www.powderrivergascorp.com
