Petrol Oil & Gas Acquires
Producing Kansas Oilfield; Producing Property to Generate Immediate Cash
Flow
LAS VEGAS, NV - BUSINESS WIRE - 08/26/04
Petrol Oil & Gas Inc. (OTCBB: POIG),
an oil and gas exploration and production company, announced today that
it has acquired a 640 acre oil field currently producing about 10,000
barrels of oil per year from RWJ Oil LC. This newest oil field
acquisition provides the company with both a new revenue stream and
additional drillable locations, which will become part of Petrol's
aggressive drilling program planned over the next year.
This producing oil field located in
Franklin County, Kansas, is close to Petrol's coal bed methane gas (CBM)
fields, and is part of the company's ongoing commercialization of oil and
gas reserves in eastern Kansas and western Missouri. Petrol will be the
operator of this producing oil field and retain a 20% net revenue
interest from its production.
The acquisition of the RWJ property
provides ongoing production from as many as 78 shallow oil wells on a 640
acre tract which lies directly between Petrol's 92,000 acre "Coal
Creek" project in Coffey County, Kansas, and the company's recently
acquired 20,000 acre CBM project in Cass County, Missouri.
Petrol has completed its initial lease
acquisition and exploration phase of its business plan and is now
becoming a revenue generating production company.
Petrol recently signed a long-term sales
contract with Big Creek Gas Field Services LLC, for the sale of the
company's CBM gas from portions of its Coal Creek Project. At present,
Big Creek is finalizing the county road crossing permitting process in
order to hook up the first of Petrol's CBM wells.
Company Overview
Petrol is planning an aggressive drilling
program in 2004-2005 once its current round of fundraising is completed.
Its large 165,000 acre leasehold overlying the Cherokee group and other
coal seams in southeastern Kansas and southwestern Missouri could support
up to 1,700 producing gas wells. The flat terrain of eastern Kansas
offers ease of access for rigs and other development activities. In
addition, the shallow depths associated with the multiple coal seams
being targeted means low drilling and production costs can provide the
company with a competitive advantage.
Coal bed methane production in Kansas has
been growing rapidly, to over 7 billion cubic feet, worth about $40
million, in 2003. This represents a 75% increase from the 2002 production
of about 4 billion cubic feet, according to the Kansas Geological
Society.
Forward-Looking
Statement: The statements in this press release regarding any implied or
perceived benefits from the Coal Creek Project, plans to drill additional
CBM gas wells, anticipated revenues, the actual number of supportable
wells, the acquisition of additional oil or gas leases, maintaining
mineral lease rights, and any other effects resulting from any of the
above are forward-looking statements. Such statements involve risks and
uncertainties, including, but not limited to, the continued production of
gas at historical rates, costs of operations, delays, and any other
difficulties related to producing minerals such as oil or gas, continued
maintenance of the oil field and properties, price of oil or gas,
marketing and sales of produced minerals, risks and effects of legal and
administrative proceedings and governmental regulation, future financial
and operational results, competition, general economic conditions, and
the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated. Important factors that could cause
actual results to differ materially from the forward-looking statements
we make in this news release include market conditions and those set
forth in reports or documents we file from time to time with the SEC. We
undertake no obligation to revise or update such statements to reflect
current events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Source:
Petrol Oil and Gas Inc.
Petrol Oil
and Gas, Inc. is a featured company on
www.NaturalGasStocks.com
Contact:
Investor Information:
Petrol Oil and Gas Inc.
702-454-7318
www.petroloilandgas.com
or
CEOcast,
Inc. for Petrol Oil and Gas
Ed
Lewis, 212-732-4300 x 225