HOUSTON, April 27, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that the drilling of the first well in the two-well drilling program in the Deep Lake Field in Cameron Parish, Louisiana (state lease 18346), in which Aztec has a minority participation interest, is progressing well and that according to the latest drilling report received on April 26, 2005, the well has now passed a drill depth of 10,223 feet and directional drilling has begun toward the target formation. The targeted total depth for this first well is now approximately 14,321 feet.
Under the terms of the participation agreement announced earlier this month, Aztec will participate in a minority interest in drilling and completion of two wells in excess of 13,000 feet each. This first well, which is expected to cost approximately $3 million to drill to a vertical depth of approximately 13,900 feet, had a spud (start) date of April 15, 2005. The second well is planned to be drilled to an approximate vertical depth of 13,200 feet and is planned to be drilled shortly after the first well. According the program's operator and several consulting geologists, both well sites are targeted at formations that are considered to contain very high volumes of natural gas plus some condensate. The Deep Lake field has already produced in excess of one trillion cubic feet of gas to date.
"Aztec reported earlier this week that the drill depth on this first Deep Lake well had surpassed 8,600 feet. Because the drilling is progressing at such a brisk pace, we felt it important to keep our shareholders up to date of its progress. Aztec has joined with some very powerful industry players in this drilling program and is looking forward to the results the relationships and these wells can produce. This first well is being drilled in an area that has yielded very significant amounts of gas and petroleum products in the past and we are pleased to be able to participate in this project. We anticipate that this will be just the first of many programs Aztec will enter as we work to build a diverse portfolio of promising oil and gas properties and prospects. Although this is the first participation drilling project funded internally by Aztec, we have committed to several others and are working diligently to build on this strategy to achieve our long-term portfolio diversification goals and to build long-term value for our shareholders," says Dr. Kenneth Lehrer, Chief Financial Officer of Aztec Oil & Gas, Inc.
Additional to the above referenced Deep Lake wells, in late 2004, Aztec Oil & Gas acquired its 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 oil production remaining in the field is estimated to be 5,627,470 barrels.
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. 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. The Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.