Message #4 From:
NewsBot Date: March 12, 2006 06:51:22 PM
KKPT KOKO Petroleum, Stock Message Board, News, DD, Quote
KOKO Announces Ownership Increase in the Corsicana Project
KOKO Petroleum, Inc. (PINK SHEETS:KKPT message board, news, quote, dd) announced today that it has revised its Letter of Intent with JMT Resources, Ltd. Fort Worth Texas regarding the Development of JMT's polymer flood pilot program on its leasehold located in Corsicana, Texas.
The previous agreement focused only on the pilot program for the polymer flood in a specific area of JMT's acreage. The revised agreement gives KOKO the right, via a master joint venture, to participate in all of JMT's acreage in the Corsicana Field which totals 7,838 acres. As mentioned in previous releases, this leasehold is the oldest oil field in Texas and was discovered in the 1890's by a company that eventually became Mobil Oil.
Recent geological analyses indicated there are several zones under the Nacatoch zone (where the polymer flood is being developed) which are oil bearing and have an excellent possibility for commercial production. These zones include the Pecan Gap, Austin Chalk and Wolf City. The joint venture plans on shooting 3D seismic over portions of the Field to better understand the potential of these zones and corresponding reserves. Subsequently, an aggressive horizontal and vertical drilling plan will be implemented to capitalize on the seismic findings.
The joint venture will also continue to develop its polymer pilot project which to date has drilled and completed two wells of the 13 well project. Rig availability has hampered the original drilling schedule; however, six consecutive wells are schedule to start drilling on February 28, 2006.
Geological engineering studies have shown that an effective ASP flood could yield as much as 30% to 40% of the original oil in place with lifting costs below $7 per barrel. Original Oil in Place was estimated to be in excess of 100 million barrels by engineers previously associated with the field.
Koko Petroleum, Inc. has committed to fund up to $4 million USD for the right to participate in all of JMT's acreage in the Corsicana Field.
Ted Kozub, CEO of KOKO Petroleum, Inc., stated the following: "KOKO has an opportunity to become involved with veteran oil people in the development of this field that combines technology with vast resources. We have created a structure that mitigates our downside risk while exposing us to tremendous upside potential. This is an important step in KOKO Petroleum's financial development and we feel it will translate to significant shareholder value."
KOKO Announces Production in Barnett Shale
KOKO Petroleum, Inc. (PINK SHEETS:KKPT) announced today that the Boyd #1 well in the Barnett Shale has begun production after a successful completion. The Boyd # 1 began recording revenue on Thursday, January 30th and, as of February 5th, has sold 1,693 barrels of oil and 4 Million cubic feet of gas. KOKO Petroleum, Inc. has a 10% working interest. Ultimate recovery and reserve estimates have not been engineered as of this date, however, the operator feels that, based on initial production (IP) and current well-head pressures, the well will payback its working interest investment in a relatively short time frame.
Rife Energy Operating, Inc. ("REO"), the operators of the well, have indicated that improvements in completions techniques have resulted in higher IP's for their Barnett Shale wells, which has also lead to sustained production.
The Company has working interests in two of REO's wells and plans on participating in more wells in the next 90 days. The second well Inglish #2 is in the completion stage and the results of this well should be available in late February.
REO, along with its affiliates, control approximately 8,000 acres of mineral interests in the Barnett Shale. They are actively continuing to acquire leasehold interests in the Barnett Shale.
Ted Kozub, President, states "We are pleased to have the opportunity to participate in REO's wells. They have a proven track record in the Barnett Shale for providing economical operations, while constantly exploring new methods and technologies to improve their performance. These participation projects are a part of KOKO's program to build a diverse portfolio of proven oil and gas properties."
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.
KOKO Petroleum, Inc. (PINK SHEETS:KKPT)
KOKO Petroleum, Inc.
Andrea Bleasdale
Investor Relations
Toll Free: 1-888-740-7276
