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Petrogas Company issues update on its Monroe County Acquisition
Petrogas Company, Inc. (OTC PINK: PTCO) ("Petrogas" or "the Company"), today issued an update regarding its recent acquisition in Monroe County, Ohio.
In 2013, one of the largest natural gas reservoirs within the Utica shale formation was discovered in Monroe and Belmont County. Estimates peg the deposits at around 150 billion cubic feet.
Those two counties are in what's known as the dry gas window and produce high volumes of pressurized natural gas that need little processing. They are home to Ohio's biggest wells and have emerged as Ohio's drilling hot spot.
The discovery quickly led to an acquisition rush in the area which is still ongoing. The Bureau of Land Management is slowly auctioning parcels for drilling, one of which Petrogas purchased last month.
According to data from Drilling Edge, natural gas production in 2013 was around 11 million MCF. In 2016 this number increased to approximately 200 million MCF.
As natural gas prices recover from 2015 lows, Petrogas expects drilling in the area to expand.
"We will do our best to make new acquisitions in Belmont and Monroe county and plan to participate in the next government auctions which tend to offer much better prices than purchasing acreage privately," said Mr. Huang Yu, CEO of Petrogas Company.
"Energy prices continue going up, making this investment more attractive by the day for the company. Once we have accumulated a sizeable number of parcels in our portfolio we will look at beginning a drill program to extract liquified gas from our leases," added Mr. Yu.
About Petrogas Company, Inc.
Petrogas Company, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company's growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information investors can visit www.petrogas-company.com.
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give Petrogas Company's current expectations or forecasts of future events. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of Petrogas Company to fund the costs of new wells and to obtain financing from other sources for continued development; the costs of operations; delays, and any other difficulties related to producing oil; the ability of Petrogas Company to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; Petrogas Company's ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K and the registrations statement for any offerings as filed with the SEC. Petrogas Company undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Petrogas Company's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although Petrogas Company believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
Chesapeake Energy continues to see its legal battles compound over its royalty-payment practices. Already facing lawsuits in several different states and having been subpoenaed by the U.S. Department of Justice, StateImpact Pennsylvania reports that another government outfit is taking a legal interest in the company's royalty payment strategies: Chesapeake Energy has been subpoenaed by the U.S. Postal service, seeking information on its royalty practices, according to a regulatory filing. As StateImpact Pennsylvania has previously reported , the Oklahoma City-based driller faces a slew of disputes and complaints over how it pays royalties. We've posted articles in the past that looked at some of the questionable practices that Chesapeake has employed to reduce the amount of royalties it pays out to landowners. As a quick refresher, note how ProPublica reporter Abrahm Lustgarten shared some of the details in an article which we shared here on The Daily Digger in March
From the Times Leader: Tri-State Environmental of Cadiz has applied for permits to install two different brine injection wells off Fairview Road in Kirkwood Township, Belmont County. According to a public notice, Tri-State has applied for permits with the Ohio Department of Natural Resources to dig two wells to inject brine water associated with the production of oil and natural gas. The first well would be called Tri-State #1, in Section 31, Kirkwood Township. “The proposed well will inject into the Ohio Shale at a depth of 4,600 to 4,800 feet. The average injection is estimated to be 4,000 barrels per day,” according to the notice. “The maximum injection pressure is estimated to be 1,060 psi.” The second well would be called Tri-State #2, in Section 25, Kirkwood Township. “The proposed well will inject into the Bass Islands through Salina Group at a depth of 5,200 to 5,500 feet,” the notice states. The No. 2 well also would receive an estimated 4,000 barrels of brine pe