VANCOUVER, British Columbia, June 27, 2005 (PRIMEZONE) -- Emerson Oil and Gas, Inc., (Pink Sheets:EOGI), a Nevada corporation, announces the operator has informed the Company that the main multi-zone hole has commenced drilling on the Acadia project in Alberta. Total depth is expected to reach 975 meters. The Acadia project is a natural gas well with oil potential and an estimated I.P.R. (initial production rates) of 2,000 mcf/day each (two million cubic feet per day). This translates into a potential asset valuation of $11,000,000 per mcf/day production.
The Acadia Project consists of sections in Alberta in an area that produces natural gas from the Viking formation, has oil potential in the Bakken zone and gas potential in the Colony and Second White Specks zones. The Viking contains natural gas in wells around the Acadia project and has the potential for 13 Bcf gas in the reservoir under the leases with a valuation of $39 million based on standard industry discounts at $3.00. Gas closed June 24 at $7.28 .
Pressure analysis of producing gas wells shows that 16 BCF (billion cubic feet) of natural gas were originally in place in the Viking reservoir contiguous to the Project on the north side. Over 2 BCF of that gas has been produced from 6 gas wells leaving over 13 BCF in the reservoir. Gas is present in two wells immediately south of the leases.
Emerson President David Harker stated, "I am excited with the recent updates from the Acadia project and we firmly believe that it is going to help drive our company in to a cash positive revenue position and give us a foothold in this strong energy market."
The Company has a 51% working interest in the Acadia Project located in South-Eastern Alberta and also maintains a carried working interest of 12.5% before payout and a 18.75% working interest after payout in both the W.T. Davis and the Rinsland Estate No. 1 well in Bossier Parish, Louisiana.
Emerson Oil and Gas is in position to take advantage of the current demand and booming world market price of oil and gas. Emerson's primary operating philosophy is to utilize the most current technology available to develop low risk, high yield, underdeveloped oil and gas reserves. This approach will enable Emerson to capitalize upon previously discovered and producing properties with known reserves that had not been completely exploited due to market conditions.
The company would also like to invite shareholders to view recent pictures of the work program that have been posted on our website.
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Emerson Oil and Gas Inc. has little or no control.
For more information, please visit our website www.emersonoilandgas.com