ATLANTA, Feb. 1, 2007 (PRIME NEWSWIRE) -- Knight Energy Corp. (Knight) (Pink Sheets:KNEC) announced today that its wholly owned subsidiary, Charles Hill Drilling, Inc., has entered into a joint venture agreement with Mr. Jay Marcom (Marcom) to explore for oil and gas on a 640 acre property lease controlled by Marcom. The property is located in Stephens County, TX where Knight has other leased properties.
The agreement calls for Knight to have a 75% working interest in the property lease and Marcom to have the remaining 25% after a 3/16 royalty payment has been deducted. The expenses relating to the drilling of wells on the leased property shall be allocated 75% to Knight and 25% to Marcom.
The leased property's history dates back to the 1920's when a well drilled on the leased property produced 1 Million MCF of Natural Gas per day that supplied the "Frankel Gasoline" plant for a number of years until it closed in 1938. At that time there were no gas pipelines in the area, and the well was plugged. There are now three gas pipelines in the immediate area that wells on the Knight/Marcom leased property could connect to. Also during the 1930's, there were two wells on the property: the "Concho 8" and the "Bradford", both of which produced approximately 300 thousand MCF of natural gas per day during the same time frame as the original well.
About Knight Energy Corp.
Knight Energy Corp. (Knight) was formed in March 2006 for the purpose of operating and developing energy related businesses and assets. Shortly thereafter, Knight acquired an independent oil and gas services company, Charles Hill Drilling, Inc., which owns a 100% working interest in a 160-acre oil and gas lease, a drilling rig and other oil and gas equipment. Subsequent to the acquisition, Knight reentered, deepened and completed the A-7 well, and then spudded and completed the A-8 well, both of which are producing (oil with a high ratio of frac water that Knight is in the process of taking off) at approximately 4,200 feet. The Company also has leased an additional 400 acres that run contiguous to the Stephens County 160-acre lease, and it has a right of first refusal on approximately 3,100 more acres in the same area.
In November 2006 Knight leased approximately 1,000 acres for oil and gas exploration in the Salt Creek Prospect area of Oklahoma. The Company is currently reviewing further acquisitions and investments in the oil and gas industry as well as other energy related businesses and assets. Additional information can be found by visiting its website at www.knightenergycorp.com.
Forward-Looking Statements:
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining oil and gas prices, and other economic factors. The Company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. Potential investors should independently investigate and fully understand all risks before making investment decisions.