HOUSTON, May 16, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that it has taken minority participation working interests in two Yegua wells (the Varana No. 1 well and the Putnam-Lange No. 1 well) in Wharton County, Texas, southwest of Houston, Texas. The drilling of both of these wells has already been completed.
According to Brayton Operating Corp., the program's operator, the Varana No. 1 well has been drilled and perforated. It was logged and tested for gas and showed no water. The well is presently shut-in and being prepared for frac, clean up, tests and tie into the gas sales line. According to a recent report, the shut in gas pressure is 1,354 pounds; the bottom hole gas pressure is 1,718 pounds; and the oil level is at 7,304 feet.
According to Mueller Exploration, Inc., the operator, The Putnam-Lange No. 1 well, which is in the Porter's Creek Lower Yegua P-5 prospect area in Wharton County, Texas, already has casing run; the wellhead has been installed; and it has already been tied into the gas sales line. The plan at present is to perforate the well on Wednesday May 18th and to initially test the lower 7,800-foot zone.
"Aztec Oil & Gas has begun a program that is presenting opportunities to participate in drilling operations in the well-known Yegua Zone in Wharton County, Texas. This is area has already yielded significant natural gas over the past five decades. It has been estimated that there could still be as much as several billion cubic feet of gas remaining in the area(a). Along with our other growing list of interests, these projects are part of the next of several steps in Aztec Oil & Gas' ongoing program to build a diverse portfolio of high value oil and gas properties and prospects. We plan to continue pursuing other promising prospects that should help us build a diverse portfolio with high long-term value for our shareholders," says Dr. Kenneth Lehrer, Chief Financial Officer of Aztec Oil & Gas, Inc.
Additional to the above referenced programs, Aztec Oil and Gas recently acquired a minority interest in two Deep Lake well prospects in Cameron Parish, Louisiana; the first well of which is nearing completion of its 14,321 foot drilled target depth. Also, in late 2004, Aztec 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. Aztec is also participating in a drilling program 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.
(a) According to a report from the U.S. Department of Energy (DOE) Office of Scientific and Technical Information (OSTI) -- Energy Citations Database.
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.