HOUSTON, Jan. 18, 2005 (PRIMEZONE) -- HOUSTON Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that finance veteran Dr. Kenneth E. Lehrer was recently appointed to the newly created position of Vice President, Chief Financial Officer.
Dr. Lehrer brings over 30 years of experience in finance and finance-related industries to Aztec Oil & Gas. He began his career with Bankers Trust Company before relocating to Houston 27 years ago where he was acting as a manager for Costas Lemos, an international Greek shipper. Since the early 1980s, Dr. Lehrer has operated Lehrer Financial and Economic Advisory Services, a financial consulting company in Houston. His firm specializes in finance, securities, economics, banking, real estate and valuations as well as litigation support and the preparation of institutional economic/finance reports, feasibility analysis and business plans. Dr. Lehrer also served as an Adjunct Professor of Finance at the University of Houston for nearly 20 years and now holds the same position with the University of Phoenix.
Dr. Lehrer is a graduate of New York University, where he has earned four degrees, including a Bachelor of Science in Finance, a Master of Business Administration in Banking, a Masters of Arts in Economics and a Doctorate in Urban Economics. He is a registered Investment Advisor (RIA) and a Certified Real Estate Appraiser (TX). He is also a member of a large number of professional, business, finance and legal organizations.
Dr. Lehrer served as Chairman of the Board of Directors at the appointment of the Federal Home Loan Bank of Dallas in the capacity of agent for four savings and loan institutions in Louisiana.
Aztec Oil and Gas has acquired 31.283% interest in Z2, LLC. Z2, LLC owns 100% of the working interest in the 7,200+ acre Big Foot oil field in Texas. The field was first discovered by Shell Oil in 1949, developed in the 1950's and has yielded over 22 million barrels over the past five decades. According to a recent reported appraisal by Lee Keeling & Associates, the total gross producible oil remaining in the Z2 LLC properties is estimated to be approximately 5,627,470 barrels.
According to Maverick Energy, there are still up to 400 proven, underdeveloped well sites within the presently productive areas of the Z2 properties. Aztec Oil & Gas intends to facilitate the drilling of a number of these new drill sites, which should increase oil production from the current level of approximately 9,000 barrels per month.
Aztec's growth strategy is partially based on participation, as it intends to team up with outside participation investors who will assume the costs associated with the drilling of additional wells in exchange for a part of the revenues derived from the wells they finance. Participation investors would possibly initially receive up to 75% of the working interest revenues from "their" wells until the hard costs are recovered, with the other 25% going to Aztec and other lease working interest holders.
Once the well hard costs are repaid to those participation investors, the Company expects that any working interest revenues would be split approximately 50-50 between those participation investors, on the one hand, and Aztec and other lease interest holders, on the other hand. The Company expects that implementation of this strategy should allow a reduction in the financial risks for Z2 and Aztec in drilling new wells, while both Z2 and Aztec would still be receiving income from present field production in addition to income from any successful new drilling.
For more information on Aztec Oil & Gas, Inc., visit www.aztecoil-gas.com.
The statements contained in this news release that are not historical facts may be statements regarding the Company's future that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe the Company's hopes, plans, objectives, goals, intentions or expectations are all forward looking statements. Any such statements made herein about the Company's future are only made as of the date of this news release. Numerous factors, many of which are beyond the Company's control, may affect actual results. The Company undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances. Also, the price Aztec Oil & Gas, Inc. and the other parties involved in the Z2 properties receive for the oil produced on their properties may be less than quoted NYMEX prices at any given time.