YUKON, Okla., Jan. 11, 2006 (PRIMEZONE) -- Superior Oil and Gas Co. (OTCBB:SIOR) today announced the execution of an agreement with Palmer Energy Co. of Tulsa, Oklahoma, for Superior to acquire from Palmer Energy, gas leases covering approximately 1,200 acres in Nowata County, Oklahoma. This acquisition will include three completed gas wells with gas tests as high as 150 Mcf a day each.
"We will continue to focus on the acquisition and development of producing gas wells," stated Dan Lloyd, CEO of Superior Oil and Gas Co. "Superior estimates that there is significant upside for this particular property with the potential to develop an additional 10 gas wells."
The pay zones include the Mississippi lime and at least two zones in the coal bed methane sections. The 1,200 acres are well located for further development in all zones and offset coal-bed methane production from the Rowe, the Mulky zones, and the Mississippi lime. The three wells await hookup to the Southern State pipeline, which is approximately 520 feet from the completed natural gas wells. It is estimated that 10 or more wells could be drilled in the development of this acreage.
This Press Release contains forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Superior's ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements.