THE WOODLANDS, Texas, July 21, 2009 (GLOBE NEWSWIRE) -- Maxim TEP, Inc. (OTCBB:MTIM), a Woodlands, TX oil and gas producing company, has commenced its Restoration Program to return the Delhi Field to production. The project consists of returning 8 wells to production and the completion of its water injection system to include 7 water injection wells and an extensive 'closed loop' pipeline system. Depending on the availability of equipment and personnel, the project should be completed around August 31, 2009.
The Delhi field has been shut-in since October 2007. When the new slate of Directors was elected to the Board in July 2008 and Management was replaced, the Company set as one of its highest priorities the restoration of production. Four producing wells and three injection wells were re-worked in late 2008 and a portion of the water injection system was installed. The Company lacked the funds to continue the project to completion. Three of the four producing wells were placed on production at minimal volumes.
Robert D. Johnson, Chairman and CEO of the Company, stated: "The Restoration of oil production at the Delhi Field will signal a major new chapter of the Company's emergence as a true oil and gas company. In late 2008 and early 2009, Maxim was unable to raise funds to complete the project due to the specter of the Environmental Lawsuit that was ongoing for the Delhi Field. That problem was alleviated through a settlement reached with the plaintiffs in June 2009. Maxim was then able to raise funds restricted to settling its obligations under the lawsuit and for the restoration of production. It is important to realize that the formation present in the Delhi Field has been produced since 1946. It is essential to inject large volumes of water to re-pressure the reservoir; then, it will take a period of time to see complete response from the injection activities and to realize maximum producing rates. Maxim estimates that as time progresses, increasing volumes of oil production will ensue. Current plans are to drill an additional three producing wells during the coming year."