FARMINGTON, N.M., Feb. 15, 2006 (PRIMEZONE) -- WW Energy Inc. (Pink Sheets:WWNG) subsidiary, WW Oil & Gas Inc., today announced that comprehensive drill programs are being developed for full exploitation of its oil and gas properties located in the San Juan Basin. The San Juan Basin is the third largest gas producing area in the United States. It is estimated there are approximately 43,000 producing wells in the area with an additional 5,000 new wells per year coming on stream over the next 10 years.
President Olin Glover commented as follows on the company's plans:
"Since going public, we are on track with our business plan. In 2006, we're aiming at major milestones for both subsidiaries. On the oil and gas side we expect to initiate a number of drilling programs this year. Our current acreage identifies undeveloped proven reserves and we intend on putting our ten years of drilling and completion experience in this area of the San Juan Basin to good use."
WW Oil & Gas Inc. intends to continue the acquisition of oil and gas properties and plans aggressive exploitation of its current acreage.
The first lease (The "Right Angle" Project), in the San Juan Basin in Northwest New Mexico, has a primary objective of entering the Jurassic Entrada Sandstone. In the late 1970s, the first oil discovery in the Jurassic Entrada sand dune led to over 2000 miles of seismic data encompassing over 200+ sand dunes in the Entrada. According to Vincelette and Chittum in their AAPG paper entitled "Exploration for Oil Accumulations in the Entrada Sandstone, San Juan Basin, New Mexico," the first well encountered 24 feet of oil that saturated the Entrada Sandstone, even though it was not located on the top of the dune. The nearest Entrada oil production is 5 miles south in Media field, which has produced more than 1.1 million barrels of oil from an accumulation that covers 160 acres of sand dune. The Gallup Sandstone is also known as an oil bearing zone.
The second and third exploitation projects (The "Johnson Anticline" Projects) in the San Juan Basin in Northwest New Mexico will test each of the following zones: the Menefee Member of the Mesaverde, the Gallup Sandstone, the fractured Mancos Shale, the Dakota Sandstone, and the Entrada Sandstone at 6,000 feet. In the late 1970s, oil was discovered in the Entrada Sandstone, the Menefee Member of the Mesaverde, the Gallup Sandstone, the Mancos Shale, and the Dakota Sandstone. In the early 1980s, fractures in the Gallup were discovered when a nearby well was drilled, and it was tested at a flow rate of 320 barrels of oil an hour.
The San Juan Basin is in Colorado and New Mexico and is also referred to as part of the Four Corners Area, which includes the San Juan Basin, the Paradox Basin, and the Black Mesa Basin. San Juan Basin oil and gas wells generate $325 million annually in federal royalties, half of which goes to New Mexico. New Mexico's petroleum industry is the largest civilian employer in the state, with over 23,000 jobs directly related to oil and gas production, refining, processing, marketing, transportation, and field services. New Mexico ranks 4th in oil reserves and 2nd in gas reserves in the United States (reserves are the amount of oil and gas in the ground waiting to be produced). New Mexico ranks 6th in oil production and 2nd in gas production in the United States.
ConocoPhillips, Shell Oil, XTO Energy, and British Petroleum are among those companies active in the San Juan Basin.
Farmington, New Mexico, where the headquarters of WW Energy is located, is the service center for the San Juan Basin area of northwest New Mexico, southwest Colorado, southeast Utah, and northeast Arizona.
About WW Energy, Inc.
WW Energy Inc. is a holding company that was created to acquire oil and gas service companies as well as oil and gas related assets through two wholly owned subsidiaries.
WW Oil & Gas Inc., established in 2005, is in the business of acquiring leases and oil- and gas-related assets. Such acquisitions are for the purposes of development, exploration, and exploitation. The company currently has rights to three oil and gas exploitation projects in the San Juan Basin area of New Mexico. Comprehensive drill programs are being developed for full exploitation of these projects.
WW Trucking Inc., formed in 1999, is a leading oil and gas services company for the oil field services industry in Utah, Colorado, New Mexico and Arizona (The Four Corners Area). The existing business operations are in transporting fresh production water for oil drilling/exploration and waste water for disposal. They also provide services for heavy hauling of drilling and well equipment needed in the oil and gas production and exploration industry.
A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results of WW Energy Inc. may achieve could differ materially from any forward-looking statements due to such risks and uncertainties, including but not limited to, the fact that no assurance can be given that any proposed acquisitions will be consummated at all.