FARMINGTON, N.M., Aug. 8, 2006 (PRIMEZONE) -- WW Energy Inc. (Pink Sheets:WWNG) is pleased to announce that it has entered into a letter of intent to acquire forty-one percent of a private company's natural gas and oil interests in Montana. The assets are characterized by producing oil and gas assets along with associated facility infrastructure (twenty miles of pipeline). The properties also contain a significant portfolio of development opportunities with many having multi-zone potential. The letter of intent is expected to close within sixty days.
WW Energy President Olin Glover commented as follows:
"We consider this purchase to be a company-maker for us. We anticipate producing assets can be ramped up to 3,500 mcf per day in gas within 30 days of closing of the letter of intent. In keeping with our corporate strategy, this acquisition greatly expands our land bank as well as our producing asset base. Negotiations are ongoing for WW Energy to purchase the remaining fifty-nine percent of the non-producing oil and gas assets which we will announce as soon as they are successfully completed."
The purchase includes approximately 450,000 gross leasehold acres in oil and gas leases covering lands within the State of Montana together with all producing wells, saltwater disposal leases, rights-of-way, disposal wells, shut-in wells and associated properties. Also included are all rights to those pipelines, gas gathering systems, gas gathering contracts, gas purchase contracts, equipment and associated properties which comprise the Grandview-Aden Pipeline System.
The following provides a summary of each of the three acreage blocks being identified as Sweetgrass Hills, North Bear Paws and the Bowdoin:
The Sweetgrass Hills play is located in Toole and Liberty Counties in north central Montana. It is near the Sweetgrass Hills area north-east of Shelby, Montana and extends up to the Canadian Border. Natural gas fields located within this play are similar to the East Keith Field, that has produced in excess of fifty six billion cubic feet (BCF) of natural gas, the Utopia Field, that has produced in excess of forty BCF, the Whitlash Field, that has produced in excess of fifty BCF, and the Fred & George Creek Field, that has produced over fifteen million barrels of oil, and are all at shallow depths of less than four thousand feet. Gas production is widespread throughout the area, as is pipeline/compressor infrastructure. In this area covering several townships, it should be possible to drill and produce every 160-acre spacing unit on a grid basis, resulting in a widespread, economic biogenic gas play.
The North Bear Paws Play is located in Hill County, Montana. It too is bordered on the north by Canada. Natural gas fields located within this play include the Tiger Ridge Field, which has produced in excess of three hundred and nineteen BCF and the Battle Creek Field which has produced in excess of forty five BCF. Natural gas wells throughout both of these play areas have encountered long life, prolific production rates and significant recoverable reserves from shallow depths ranging from 1,000 feet to 3,800 feet. It is not uncommon for wells in favorable geological locations to produce at rates exceeding 1,500 MCFPD and/or 500 BOPD and recover in excess of two BCF of natural gas and/or one million barrels of oil per well. A typical well in this area will produce for longer than twenty years.
The east and west Bowdoin consists of over 112,000 acres. The Bowdoin Gas Field is located in the rolling prairie lands of north central Montana in Phillips and Valley Counties. The field extends in length for over forty eight miles from Highway 2 near the town of Malta, Montana northward into Saskatchewan, Canada. The Bowdoin Field is the second largest gas field in Montana with over 1,200 wells and cumulative production to date exceeding 500 BCF of natural gas. Well spacing varies from one well per six hundred and forty acres in the extended parts of the field down to one well per eighty acres in some of the more central areas of the field.
In summary, our acreage position contains six primary proven pay-zones: Bowdoin, Eagle Sandstone, Blackleaf, Sawtooth Sandstone, Bow Island Sandstone, and Mannville Channel Sands. In addition to the above six primary zones there are six additional productive zones in the immediate area; the second White Specks, Sunburst B, Swift, Madison, Nisku, and Duperrow. They all have the capacity of adding significant volumes of oil and gas to the six primary plays. Our pipeline will provide us immediate access to the Arden Transport System; please note that third party operators that have acreage in this area would likely want access to our pipeline to transport their gas to the Arden System, a transportation fee of +/- .50 per MCF would be charged; another income source not yet projected.
Based on the July 1, 2005, Ryder Scott Report for proven produced, proven not produced, and proven undeveloped (including probable reserves and possible reserves) the total combined asset value is over $197,000,000 (please note that any tax benefits associated with oil and gas exploration, such as intangible drilling credits, depletion allowances, and depreciation have not been incorporated). In addition, there is a strong likelihood of finding Mannville Channels in the immediate area which represents significant upside potential. The Fred and George Creek field to date has produced over 15,000,000 BO which, at $60 per BO equals $900,000,000 (a well completed in May of 2006 is producing at 1500 BOPD). Many Mannville Channels have been found immediately across the Canadian border by incorporating 3D seismic which plays a significant part of our development program.
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 exploitation projects in Texas, Utah and 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). Their 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.
Forward-looking statements:
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 Reform 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.