HOUSTON, Aug. 4, 2005 (PRIMEZONE) -- PetroSearch Energy Corporation (Pink Sheets:PTSG) ("PetroSearch" and "the Company") announced today that its wholly owned subsidiary, TK Petrosearch, L.L.C., has divested its interest in the Blue Ridge Salt Dome Field for approximately $2,140,000. The transaction closed on August 3, 2005, and is effective as of July 1, 2005. The buyer is Kellco Energy, Ltd., an oil and gas firm headed by an individual who previously managed the property for PetroSearch. The sale was the result of an arms-length negotiation with the buyer.
The Blue Ridge field, which was discovered by Gulf Oil in the early 1920s, is located in Fort Bend County, just outside of Houston. PetroSearch acquired an interest in the field in mid-2003 and began development drilling and work-over operations. At the time of the sale, PetroSearch had a leasehold interest of approximately 420 acres in the field, with working interests ranging from 35% to 70%.
As of December 31, 2004, the Company's share of the Blue Ridge property had approximately 77,000 barrels of proved oil reserves and a PV-10 value of $1,370,110, which represented approximately 10% of the Company's total PV-10 value as of that date. During 2005, the asset provided the Company a monthly average of approximately $75,000 of net revenue and 1,844 barrels of oil. The property had an estimated remaining 68,700 barrels of proved oil reserves at the time of the sale.
In announcing the sale, Richard Dole, President and CEO of PetroSearch, said, "We received an excellent price for the property, and the sale allows us to re-deploy our funds into projects that have a better 'fit' with our business model and strategic plan."
About PetroSearch
PetroSearch Energy Corporation, a Nevada corporation with executive offices in Houston, Texas, was created by a team of seasoned and successful oil and gas professionals for the purpose of finding and developing oil and gas reserves across the United States. PetroSearch sources oil and gas prospects and development talent by means of an innovative business model, which is designed to attract independent professionals who have knowledge of overlooked, undeveloped or underdeveloped oil and gas reserves. Through a joint interest arrangement, PetroSearch provides management oversight and technical input. PetroSearch is currently active in Texas, Oklahoma, North Dakota, Montana, Alabama and Mississippi. For more information about PetroSearch please visit http://www.PetroSearch.com
Forward-Looking Statements
Statements contained herein and the information incorporated by reference herein may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, "may," "will," "expect," "anticipate," "estimate," "would be," "believe," or "continue" or the negative or other variations of comparable terminology. We intend such forward-looking statements to be covered by the safe harbor provisions applicable to forward-looking statements contained in Section 21E of the Exchange Act. Such statements (none of which is intended as a guarantee of performance) are subject to certain assumptions, risks and uncertainties, which could cause our actual future results, achievements or transactions to differ materially from those projected or anticipated. Such risks and uncertainties are set forth herein.
Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demands and acceptance, changes in technology, economic conditions, the impact of competition and pricing, and government regulation and approvals. PetroSearch cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those PetroSearch expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business.
Our expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, including without limitation, our examination of historical operating trends, data contained in our records and other data available from third parties. There can be no assurance, however, that our expectations, beliefs or projections will result, be achieved, or be accomplished.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no duty to update these forward-looking statements.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms herein, such as "probable," "possible," "recoverable," "risked" among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Readers are urged to carefully review and consider the various disclosures made by use which attempt to advise interested parties of the additional factors which may affect our business.