HOUSTON, June 16, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today the results on two of the seven of the test wells in which it had recently taken a minority participation working interest.
The first test well, the Lopez No. 1 well in Duval County, south of San Diego, Texas, was drilled to an approximate depth of 6,200 feet. While gas was encountered in the target formation, the operator (Midas Resources, Inc.) felt that, "based on the relatively thin gas column in conjunction with the low remaining reservoir pressure," the decision was made that the well was non-commercial grade. While the original geology appeared to prove accurate on this well with the target formations being encountered and gas being found, the marginal production capability dictated that this particular well location was simply not profitable at this time. Further analysis will determine whether or not another test well should be drilled on these leases at a later date. Aztec held only a one percent working interest in this program.
The second test well, the Sue-Ann No. 1 well in the Frio-Vicksburg-Yegua trend in northeastern Jim Wells County, Texas, was drilled to an approximate depth of 6,000 feet. In this well, of the three formations encountered, one formation tested tight and the other two formations tested water. The program's operator (Rainbow Investments Co.) determined that this well was non-commercial and thus was plugged. Aztec held a three percent working interest in this program.
Three of Aztec's other test wells have been determined as commercially successful, with one (Deep Lake No. 2) being considered to have very substantial projected production capacity and reserves.
"Aztec Oil & Gas is continually seeking promising prospects where it can take a minority interest with other drilling partners and well operators in both Texas and Louisiana. Unfortunately, every project we enter can not be a homerun, but we will continue to pursue projects that increase our oil and gas ownership. By taking minor interests in a wide variety of projects, Aztec increases its potential to participate in a number of highly successful wells, while keeping our exposure to losses on any given project at a minimum. Aztec's ongoing pursuit of other promising prospects should help us to build a diverse portfolio with high, long-term value for our shareholders," says Dr. Kenneth Lehrer, Chief Financial Officer of Aztec Oil & Gas, Inc.
In 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. Drilling, logging, and casing of the first Deep Lake well has been completed to its target depth of 14,321 feet. That well is currently awaiting a completion rig. The second Deep Lake well is presently being drilled to its approximate target depth of 13,200 feet. 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.
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.