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| 8-K - FORM 8-K - Petro River Oil Corp. | ptrc8k_feb82017.htm |
Exhibit
99.1
FOR
IMMEDIATE RELEASE
New
3-D Seismic Data Identifies Significant Reserve
Potential
Petro
River Oil Plans Four Wells in Three Project
Areas
NEW
YORK, NY, February 8, 2017 Petro River Oil Corp. (OTCBB: PTRC)
(“Petro River” or the “Company”), an
independent oil and gas exploration company utilizing the latest
3-D seismic technology, announced
today that recently acquired and re-processed 3-D seismic data has
shown positive results in three of the Company’s project
areas located in California and Oklahoma. Given these positive
results, the Company now intends to move forward with drilling four
wells on these three core assets during the second quarter of this
year.
Stephen Brunner, President of Petro River and a member of
the Board of Managers of Horizon Energy commented, “The 3-D
seismic surveys have allowed Petro River to confirm viable
prospects in three of our active project areas. This data improves
our understanding of structure, trap type and reservoir
characteristics enabling our exploration effort to move forward
with more precision and lower exploration risks. If any of the
initial wells are successful, numerous additional opportunities for
reserve additions and substantial production will be available to
Petro River.”
Below
is a summary of Petro River’s three core projects that were
subject to the 3-D seismic mapping:
Kern County, California
Petro
River has both direct and indirect interests (through its ownership
of 20% of Horizon Energy Partners, LLC (“Horizon
Energy”)) in two projects in Kern County, California. Kern
County is the home to four of the ten largest oil fields in the
United States and continues to be an active petroleum producing
province.
In the first project, Petro River owns a 13.75% direct working
interest and an indirect interest, through Horizon Energy’s
ownership of a 27.5% direct working interest in the project. This
project involves the re-development of a 100 million barrel
oil field, discovered over 80 years ago, within which the project
participants control approximately 4,500 net areas of ideally
situated oil and gas leases. This opportunity primarily results
from the lack of modern seismic data covering the
field.
Recently,
Petro River and the other venture participants completed the
acquisition of a new, 30 square mile 3-D seismic survey over the
field. Although this data is still being processed, the initial
results are compelling and indicate numerous undrilled,
multi-objective potential hydrocarbon-bearing zones within the
field. The consensus of the participants is that as much as 25% or
more of the current cumulative historical production will be found
based on future drilling utilizing the newly acquired 3-D data. An
initial exploration well is planned in the late 2nd quarter of 2017.
The well depths in the field range
from 4,000-8,500 feet and the oil is light, in contrast to many of
the “heavy” oil fields nearby. Extensive oil and gas
infrastructure is already in place.
The
second project in Kern County (in which Horizon Energy owns a 40%
working interest) comprises joint venture lease holdings
of approximately 8,500 net acres
located southwest of Bakersfield, California in the vicinity of
prolific Stevens Sand production. Historic production from
several nearby fields producing from the same geologic objectives
has exceeded 150 million barrels of oil on a cumulative
basis.
The
results from the processing of a new 24 square mile 3-D seismic
survey acquired in 2016 provide a clear picture of the extent of a
recent, uncompleted discovery and have led to the identification of
several other robust exploration opportunities in discrete areas
within the lease holdings. An initial exploration/development well
is planned in the late 2nd quarter of 2017.
The well will target thick hydrocarbon-bearing zones at around
15,000 feet.
The Pearsonia West Concession, Osage County, Oklahoma
The Pearsonia West Concession in Osage County, Oklahoma includes
106,500 contiguous acres centered on the structural trend of the
Pearsonia-Blackland-Foraker fields. These fields have produced in
excess of 20 million barrels of oil through vertical well
development and is close to fields that have produced 200
million barrels of oil through vertical production since the early
1900s.
The Company recently reprocessed 35 square miles of 3-D seismic
data which defined 4,480 acres of structural closures and multiple
Pennsylvanian channel and Mississippian chat formations. As a
result, Petro River and its operating partners are in the
process of securing permits to drill four wells by April 2017. The
program will test the first 1,610 acres of the defined structural
closure, which has prospective resource potential of 2.5 million
barrels of oil. Results are expected by June 2017.
An
additional 55 square miles of 3-D seismic is planned to be shot by
the Company in the southern portion of the concession in 2017.
Assuming success in the initial drilling phase, the Company
anticipates providing scalable and repeatable vertical drilling
opportunities within the concession boundaries.
About: Petro River Oil Corp.
Petro
River Oil Corp. (OTC Pink: PTRC) is an independent energy company
with its core holdings in Northeast Oklahoma and Kern County,
California. Petro River’s strategy is to apply modern
technology, such as 3-D Seismic analysis to exploit
hydrocarbon-prone resources in historically prolific plays and
underexplored prospective basins to build reserves and to create
value for the Company and its shareholders. Petro River owns a 20%
equity interest in Horizon Energy Partners, LLC and its president,
Stephen Brunner, is also a member of the Board of Managers of
Horizon Energy Partners, LLC.
For
more information, please visit our website at www.petroriveroil.com.
About: Horizon Energy Partners, LLC.
Horizon
Energy is an oil and gas exploration and development company with a
portfolio of domestic and international assets. The majority of the
funding for Horizon Energy has come from seasoned oil and gas
industry professionals, including several former senior oil
industry executives who have run both major and large independent
oil and gas companies, and have advised large energy focused
private equity funds and hedge funds. Horizon Energy is managed by
Jonathan Rudney; Mr. Rudney has over 35 years of senior executive
experience in the upstream oil and gas industry, and, throughout
his career, has been instrumental in the growth and success of
several private E&P companies. Horizon Energy was formed to
take advantage of the current depressed oil market and has
identified and acquired a portfolio of highly attractive oil and
gas assets. A common theme underlying each project is the
application of modern technology, such as the use of 3-D seismic
data.
Forward-Looking Statements.
This
news release contains forward-looking and other statements that are
not historical facts. Readers are cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which
they are based will occur. By their nature, forward-looking
statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and
other forward looking statements will not occur, which may cause
actual performance and results in future periods to differ
materially from any estimates or projections of future performance
or results expressed or implied by such forward looking statements.
These forward looking statements, projections and statements are
subject to change and could differ materially from final reported
results. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the dates on
which they are made. Petro River assumes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable securities law. Additionally, Petro River undertakes no
obligation to comment on the expectations of, or statements made
by, third parties in respect to the matters discussed above.
Readers should also carefully review the “Risk Factors”
in Petro River’s annual report on Form 10-K, its quarterly
reports on Form 10-Q, and other reports filed with the SEC under
the Securities Exchange Act of 1934, as amended.
For
additional information about Petro River Oil, please visit
http://petroriveroil.com/ or contact:
Investor
Relations
ir@petroriveroil.com
telephone:
(469) 828-3900