TYLER, Texas, Jan. 22, 2007 (PRIME NEWSWIRE) -- Biogenerics Limited's (Pink Sheets:BIGN) Board of Directors announced today that the Company has entered into a Letter of Intent to purchase an operating oil field in central Louisiana. This transaction is separate from the Joint Venture Transaction -- East Texas Oil Field.
The central Louisiana oil field is comprised of approximately 65 acres, more or less, and it currently has 27 operating oil wells and two salt water injection wells with, one other salt water injection well to be drilled per the agreement. The oil field has been completed with the most recent technology involving down-hole submersible pumps. All pumps are brand-new Grundfos submersibles, connected with "smart drives" which allow the field to be managed using the latest in proven computer technology. These wells operate at fluid flow rates of 500 bbls/fluid/day each resulting in oil production historically at the rate of over 4,000 bbls/oil/month. Management anticipates the wells will settle into a production rate of 4,500 or more bbls/oil/month within the first few months of operations. This production of oil is graded at a gravity of 22, which is highly sought after by refiners for the production of asphalt. Currently, the oil is sold under contract to a major purchaser of oil in the area and is reaping a premium over the PLATTS published rate of $2.75 per bbl. The leases pertaining to this asset involve a 25% landholders' lease royalty, therefore, the 100% working interest in these leases results in a 75% ownership of all production.
The locations being pursued by management are logistically situated, establishing an operational facility for the Company in central Louisiana.
Website: http:/www.bignltd.com
About Biogenerics Limited
Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics also has joint venture activities with Tyche Energy Inc and Hydroslotter Corp.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.