PetroGas Acquires Permian Basin Interest in Terry County, Texas
HOUSTON, TX--(Marketwired - February 26, 2018) - PetroGas Company, Inc. (OTC PINK: PTCO) ("PetroGas" or "the Company"), today announced that it has acquired interests in oil and gas mineral rights in Terry County, Texas.
The interests consist of a minority stake in two large sections of three different surveys in the county totaling 1,600 acres. Terry County has over 3,600 drilled wells with top producing operators including Apache Corporation and Exxon's XTO Energy. Terry is a proven oil and gas production area.
"We're delighted to have been able to close on this purchase during a time when oil and gas prices are hovering at 3-year highs. We believe that owning a stake in the largest petroleum-producing basin in the US is an achievement in itself and we plan to continue pursuing opportunities throughout the US as they become available to us," said the CEO of PetroGas Company.
About The Permian Basin
The Permian Basin is the largest petroleum-producing basin in the United States and has produced a cumulative 28.9 billion barrels of oil and 75 trillion cubic feet of gas. Currently, nearly 2.8 million barrels of oil a day are being pumped from the basin. It has been estimated by the EIA that the remaining content was 43 billion barrels of oil and 18 trillion cu. ft. of gas; however, some experts claim the content is much bigger than expected, half a trillion barrels or even 2 trillion barrels. Eighty percent of estimated reserves are located at less than 10,000-foot (3,000 m) depth.
PetroGas is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company's growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized.
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give PetroGas Company's current expectations or forecasts of future events. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of PetroGas Company to fund the costs of new wells and to obtain financing from other sources for continued development; the costs of operations; delays, and any other difficulties related to producing oil; the ability of PetroGas Company to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; PetroGas Company's ability to market and sell produced minerals; the 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 are set forth in our Form 10-K and the registrations statement for any offerings as filed with the SEC. PetroGas Company undertakes 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. PetroGas Company's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although American Resources believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.