HOUSTON, May 24, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that it has finalized a minority participation working interest in the Sue-Ann No. 1 well in the Frio-Vicksburg-Yegua trend in northeastern Jim Wells County, Texas. The drilling of this well is planned to begin shortly.
According to Rainbow Investments Co., the program's operator, the Sue-Ann No. 1 well should be drilled to an approximate depth of 6,000 feet. The completion cost for this well is anticipated to be approximately $480,000. Other wells drilled in the vicinity of the proposed Sue-Ann No. 1 have produced significant amounts of both oil and natural gas.
Oil was first discovered in Jim Wells County in 1931. Annual oil production in the county has steadily grown over the years, reaching levels of approximately 800,000 barrels per year in the early 1990s. Between 1933 and January 1, 1991, 457,243,288 barrels were produced, making the county one of the all-time leaders in oil production among Texas counties.
"Aztec Oil & Gas recently expanded its reach by participating in a drilling program in Duval County, Texas. That area has produced more oil than almost any other county in the state. Along with our other growing list of interests, this new Jim Wells County project is part 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, two drilling projects in Wharton County, Texas and the drilling project in Duval County, 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.