Petrol Oil & Gas to Initiate
Aggressive CBM Drilling Program With Proceeds of $6.6 Million Private
Placement
LAS VEGAS, NV - MARKET WIRE - 09/15/04
Petrol Oil and Gas Inc. (OTC BB: POIG)
announces closing of an equity private placement with gross proceeds of
$6,640,000. Energy Capital Solutions LLC of Dallas, Texas, acted as
placement agent with assistance from Pritchard Capital Partners.
Funds raised from the unit offering are
planned to be used to initiate field development of Petrol's Coal Bed
Methane ("CBM") project on its Coal Creek Project in Coffey
Co., Kansas, acquire additional mineral acreage and producing properties,
and for general working capital.
Petrol has planned an aggressive drilling
program in 2004-2005 with the closing of this current round of
fundraising. Their 165,000-acre leasehold covers the Cherokee group and
other coal seams in southeastern Kansas and southwestern Missouri and
could support up to 1,700 producing gas wells. The shallow depths
associated with the multiple coal seams means low drilling and production
costs. In addition, the flat terrain of Eastern Kansas offers ease of
access for rigs and other development activities.
According to the Kansas Geological
Society, Coal Bed Methane production in Kansas has been growing rapidly,
to over 7 billion cubic feet in 2003. This represents a 75% increase from
the 2002 production of about 4 billion cubic feet. (More info: www.kansasenergy.org/sercc.htm).
Peggy Williams of Oil and Gas Investor
suggests the Cherokee Basin in Kansas is one of five basins that are
"poised to deliver the next wave of growth" in CBM
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