HOUSTON, Aug. 4, 2008 (PRIME NEWSWIRE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that it has just received third-party preliminary reserve reports on the first two wells in its 2007A Partnership, which was formed under the Aztec 2007 Oil & Gas Drilling Program. Both wells were drilled in Tyler County, West Virginia and were spudded in March 2008, but due to extremely difficult weather and flooding, the wells were not completed and "turned" into gas sales pipeline until June 2008.
The volumetric reserve calculations report by Mr. Donald C. Kesterson, a well known local geologist in West Virginia, gave the following reserve calculations for the two wells based on a full suite of open hole logs:
Proved Developed
Proved Developed Producing Non-Producing (behind pipe)
-------------------------- ---------------------------
Natural Gas Crude Oil Natural Gas Crude Oil
----------- ---------- ----------- ------------
(MCFs) (Barrels) (MCFs) (Barrels)
Williams #1 164,306 2,604.78 165,326 15,205.00
Williams #2 250,664 4,638.02 179,734 12,905.82
Both wells were drilled to slightly over 5,000 feet each and each well was completed in both the Benson and Elk sands formations. The Williams #1 started selling gas on June 10, 2008 and the Williams #2 started selling gas on June 25, 2008.
The 2007A Partnership is the third partnership formed by Aztec under its sponsored drilling programs. In this new partnership, Aztec Oil & Gas, Inc., through its wholly-owned subsidiary, Aztec Energy, LLC retains a 30% ownership and acts as the Managing General Partner. Another Aztec subsidiary, Aztec Drilling & Operating, LLC serves as the Partnership's turnkey drilling contractor and operator.
"Aztec is building its balance sheet and making significant, positive progress on its business plan. We are seeing more and more acceptance by the national Broker Dealer community of Aztec's stock and of its drilling programs," stated Franklin C. Fisher, Jr., CEO and Chairman of Aztec.
About Aztec Oil & Gas, Inc.
Aztec is an oil and gas exploration, development and production company focusing on numerous areas throughout the U.S. It owns a minority interest in a 29-well oil and natural gas program in Potter, Clearfield and Cambria counties in Pennsylvania with all of the wells presently producing into pipelines. Aztec also owns a minority interest in two Deep Lake wells in Cameron Parish, Louisiana ranging from 13,600 feet to 14,300 feet in depth with both wells producing commercial quantities of natural gas. Aztec additionally owns a minority interest in one well in Wharton County, Texas which is currently producing and selling oil and natural gas; and one well in the Barnett Shale play area located in Wise County, Texas which had good initial oil and gas shows, is producing, but is experiencing mechanical difficulties. Aztec has a minority interest in three producing gas wells in Oklahoma of which two are conventional wells, and the third is a horizontal, Coal Bed Methane (CBM) well. One additional well has been drilled and completed and is presently being analyzed.
In 2007, through its wholly-owned subsidiaries, Aztec Energy, LLC and Aztec Drilling & Operating, LLC, Aztec completed a successful four (4) well drilling program in the Doddridge County area of West Virginia which is currently producing into sales pipeline and tanks. Aztec Energy, LLC also manages a second Aztec drilling partnership focused in Tyler County, West Virginia in which it owns a 30% interest. Aztec's third drilling partnership recently successfully completed two wells in Tyler County, WV, both of which are producing into pipeline, as stated in this press release. Aztec also manages this third partnership and owns a 30% interest in same. In clarification, Aztec sponsors low risk, development drilling programs which include significant tax benefits, all of which are sold through Registered Broker Dealers to Accredited Investors.
For more information on Aztec Oil & Gas, Inc., please visit http://www.aztecoil-gas.com.
This presentation/document contains certain statements, estimates and forecasts with respect to future performance and events. All statements other than statements of historical fact included in this presentation/document, the Memorandum, or the Aztec Website, including statements regarding future performance of events, are forward-looking statements. All such forward-looking statements are based on various underlying assumptions and expectations and are subject to risks and uncertainties which could cause actual events to differ materially from those expressed in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this presentation, the Memorandum, or the Aztec Website will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation/document, the Memorandum, or the Aztec Website might not occur. Accordingly, investors should not rely upon forward-looking statements as a prediction of actual results. Also, the price Aztec Oil & Gas, Inc. and the other parties involved in any properties receive for the oil and natural gas produced on their properties may be less than quoted NYMEX prices at any given time. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or subsequent circumstances or otherwise.