HOUSTON, May 20, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that it has taken a minority participation working interest in the Lopez No. 1 well in Duval County, south of San Diego, Texas. If this well proves successful, two or more additional wells could be drilled in the same area, with Aztec being afforded a participation opportunity in those wells.
According to Midas Resources, Inc., the program's operator, in conjunction with Brayton Operating Corp., the Lopez No. 1 well is planned to be drilled to an approximate depth of 6,300 feet. It is a direct offset to Louisiana gas Development Corporation's very successful Bazan No. 1 well (completed in 2001), which has produced over 1.682 BCFG and 38,900 BO to date. The Lopez No. 1 well is described as a Yegua Y-7 test.
Oil was discovered in Duval County in 1905. When a wildcat well came in near Freer, Texas in 1928, a full-scale oil boom occurred. By 1938 Duval County ranked third among the state's 254 counties in oil production. The area's oilfields are considered mature, but are still producing steadily for smaller drilling operators.
"Aztec Oil & Gas continues to seek other promising prospects with a variety of drilling partners and well operators in Texas and Louisiana. This well in Duval County is near another drilling project we are presently reviewing in adjacent Jim Wells County, Texas. The Lopez No. 1 well is among the steadily growing list of new ventures we have entered this year and one 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 assemble 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, 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. Aztec also 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. Aztec is also participating in a drilling program in the Barnett Shale play located in Cooke, Wise and Montague Counties, Texas and two drilling projects in Wharton County, 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.