HOUSTON, May 12, 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 May 11, 2005, the well has now passed a drill depth of 14,000 feet and is approaching the targeted total depth of approximately 14,321 feet. Subject to weather and the availability of equipment, this well is could be logged as early as this weekend.
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 is pleased with the brisk pace of the first Deep Lake well. We hope that when completed, this well produces similarly to others in the area. The Deep Lake area has yielded significant amounts of natural gas and petroleum products in the past. This project is one of several next steps in Aztec Oil & Gas' ongoing program to build a diverse portfolio of promising oil and gas properties and prospects. We anticipate participating in many more drilling programs, several of which should be announced in the coming weeks," 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 and 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. Aztec also recently announced its minority participation working interest in the McCoy No. 2 well in the Barnett Shale play, north of Fort Worth, Texas. This well is Aztec's first in a planned program to exploit oil and gas reserves from leasehold interests held in the Barnett Shale play located in Cooke, Wise and Montague Counties, Texas.
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.