HOUSTON, June 20, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that the company has just signed an agreement to participate in a drilling program in the South Deep Lake Field in Cameron Parish, Louisiana (state lease 18172). Under the terms of the agreement, Aztec will participate in a minority interest in drilling and completion of a single well with an approximate target depth of 19,000 feet.
Drilling of this well, which is expected to cost approximately $14.5 million to drill and another approximately $5 million to complete, has already been drilled to over 6,000 feet. The operator, PetroQuest Energy, Inc., expects the drilling phase of this well to take approximately three months to complete due to the projected high gas pressures and volumes which should be encountered during the drilling.
"This is the most potentially significant well in which Aztec Oil & Gas has participated to date and we are extremely excited about the promise it holds. The South Deep Lake field holds an enormous amount of natural gas and the operator on this project is very optimistic about the potential production of this well. The scope of this project has brought together some very powerful players with impressive track records in the oil & gas industry. Aztec is pleased to be able to join them in such a notable project. Aztec's goal is to continually seek out promising prospects that hold the potential for high returns in an effort to help build a diverse portfolio with high, long-term value for our shareholders," said 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; as well as 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.