HOUSTON, Feb. 27, 2009 (GLOBE NEWSWIRE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that its newest drilling partnership, the Aztec VIII A Oil & Gas LP, has successfully participated in a previously-announced natural gas well in Goliad County, Texas.
The West Powell #1 well was drilled to an approximate depth of 2,000 feet. The well encountered two Miocene gas sands, one at 1,816 feet and the other at 1,630 feet (upper zone). The lower sand was tested, but was deemed not to be commercially productive at this time because as it was too tight. The upper sand formation was tested to be commercial. The formation was perforated from 1,628 - 1,634 feet. That zone was then flow tested by FESCO for two (2) days to verify its flow rates and pressure.
Currently the upper zone of this well is estimated to have approximately twelve (12) feet of net gas thickness. The well is presently producing approximately 200,000 cfgpd (cubic feet per day) into a Duke Energy gathering system. Estimated reserves in this zone utilizing the log, 3D seismic, and the flow test could be between 300,000,000 to 500,000,000 cfg or 3/10ths to 1/2 bcf (billion cubic feet) of natural gas. As with all wells, to truly calculate reserves, the well will need to produce for several months.
Based on the success of West Powell #1, Aztec Oil & Gas and Resaca Resources (Operator for Aztec) have identified three (3) additional locations that are direct analogs of the West Powell #1. It is anticipated that these wells will be drilled in the near future.
"The West Powell #1 and the confirmation of the three additional analog locations are proving to be a successful start for the Aztec VIII A Partnership. While we presently are inclined to focus on oil drilling, both oil wells and gas wells are evaluated on a stringent economic, rather than emotional scale. If the economics favor the partnership we will drill for gas, as was the case in this instance. Aztec's focus always remains on making the most money for its shareholders and partnerships in every situation," stated Waylan R. Johnson, President of Aztec Oil & Gas, Inc.
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 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 significant quantities of natural gas. Aztec additionally owns a minority interest in one well in Wharton County, Texas which is currently producing; 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.
In 2007, through its wholly-owned subsidiaries, Aztec Energy, LLC and Aztec Drilling & Operating, LLC, Aztec completed and now manages a successful four (4) well drilling program in the Doddridge County area of West Virginia in which it owns a 30% interest and 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. In 2008 Aztec's third drilling partnership subsequently successfully completed two wells in Tyler County, WV, both of which are producing into pipeline. Aztec also manages this third partnership and owns a 30% interest in same. The fourth drilling partnership, referenced in this press release, will focus on drilling in Texas. Aztec also owns a 30% interest in that partnership and acts as its managing partner. In general clarification of its activities, Aztec sponsors low risk, development drilling programs which include significant tax benefits, all of which are sold through Registered Broker Dealers to Accredited Investors. Its drilling programs are very unique and also incorporate a sophisticated exit strategy for 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, subsequent circumstances or otherwise.