Attached files
| file | filename |
|---|---|
| EX-10.1 - PURCHASE AND EXCHANGE AGREEMENT, DATED FEBRUARY 14, 2018 - Petro River Oil Corp. | ex10-1.htm |
| 8-K - CURRENT REPORT - Petro River Oil Corp. | ptrc8k_feb142018.htm |
Exhibit 99.1
PETRO RIVER OIL ACQUIRES ADDITIONAL PROSPECTS IN
OKLAHOMA
FOLLOWING SUCCESS OF ITS OSAGE COUNTY DRILLING PROGRAM
NEW
YORK, NY, February 15, 2018 - 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 it has acquired
additional prospects in Kay County, Oklahoma that have a combined potential recoverable resource of
5.8 million barrels of oil.
The Kay
County acquisition is pursuant to a purchase and exchange agreement
under which Petro River assigned 100%
of its 13.75% working interest in the Mountain View Project in Kern
County, California for the 64.70% of Red Fork Resources, LLC
(“Red Fork”) 85.00% working interest in Kay County,
Oklahoma, resulting in the Company owning a 55% working interest in
Kay County. Each of Red Fork and Petro River will retain a 2%
overriding royalty on their respective assigned
projects.
Kay County Prospects:
The Kay County, Oklahoma acquisition adds additional prospect
locations adjacent to Petro River’s 106,000 acre concession
in Osage County, Oklahoma. The similarity of the prospects in Kay
County allows for the leverage of assets, infrastructure and
technical expertise. Recent seismic reprocessing and interpretation
of over 50 square miles of 3D data has revealed multiple
Mississippian Chat structures and Red Fork channel prospects. Three
Mississippian Chat structures and eight Red Fork channel prospects
have been identified.
Osage County, OK Drilling Program Update:
The
Company is currently executing on its development plans in Osage
County, OK. The development wells are located in the West Blackland
and South Blackland oil fields discovered by the West Blackland 1-3
and South Blackland 2-11 exploration wells drilled by the Company
in 2017. Based on results of the 30-day oil flow tests from these
exploration wells, the Company’s estimated ultimate recovery
(“EUR”) per
well is approximately 105,000 barrels of oil equivalent
(“BOE”) in the
West Blackland field and 63,000 BOE in the South Blackland field.
To date, four additional wells have been drilled and completed in
the West Blackland (wells 2-3, 5-3, 6-3 and 9-3), with the
remaining wells, to follow. Management is pleased with the early
results which are in line with expectations and validates the 3-D
seismic methodology.
Below
are the anticipated single well economics from our development plan
in the West Blackland and South Blackland fields:
|
W. Blackland Single Well Economics
|
|
|
|
|
||
|
Cashflow
|
Cap Ex
|
1 Yr
|
3 YR
|
5 YR
|
Life of Well
|
IRR
|
|
100% WI
|
(250,000)
|
$511,725
|
$986,126
|
$1,270,373
|
$3,068,889
|
163%
|
IP Rate: 71 BOE; EUR: 105,000 BOE
|
S. Blackland Single Well Economics
|
|
|
|
|
||
|
Cashflow
|
Cap Ex
|
1 YR
|
3 YR
|
5 YR
|
Life of Well
|
IRR
|
|
100% WI
|
(250,000)
|
$266,490
|
$540,712
|
$708,481
|
$1,600,096
|
73%
|
IP
Rate: 35 BOE; EUR: 63,000 BOE
The
single well economics above are estimates only, and are based on a
net revenue interest of 76%, a flat rate of $50 oil and $2.10 gas
prices. Our lease operating expenses are $1,000 fixed per well plus
$1.25 variable per barrel of oil. No assurances can be given that
we will realize the returns estimated, and actual returns may be
different, and such differences may be material.
-1-
Management’s Comments:
Stephen
Brunner, President of Petro River stated, “The property
exchange in Kay County, OK compliments our Osage Project and
positions the Company to execute on our exploration and development
plans in the region. Refocusing our efforts in Oklahoma, based on
our recent success, reaffirms our belief that applying modern
technology to historically productive fields in this region will
result in attractive well economics. Additionally, we believe the
execution of a successful West Blackland development program will
provide significant cash flow to the Company.”
About:
Petro River Oil Corp.
Petro
River Oil Corp. (OTCBB: PTRC) is an independent energy company with
its core holdings in Osage County, 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.
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 Securities
and Exchange Commission 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
-2-