DENVER, Sept. 19, 2006 (PRIMEZONE) -- Mammoth Energy Group, Inc. (Pink Sheets:MMTH) announced today that its wholly owned subsidiary, ProTerra Oil and Gas, Inc., has drilled and completed its first well in Ellis County, Kansas. The well was drilled in late July and completed in late August. The No. 1Fredd Haas, drilled to the Arbuckle formation, has steadily pumped 60 barrels a day since its completion.
A second offset well one half mile away -- the No. 1Theckla Haas -- has also encountered commercial pay in the Arbuckle formation. The No. 1Theckla Haas is also completed and awaiting further testing and engineering. From drill stem tests, ProTerra expects this well to produce between 20-40 barrels a day.
ProTerra has a 45% working interest in both wells. The No. 1Fredd Haas should net 23 barrels a day to ProTerra, or approximately $40,000 per month in production revenues.
"We are thrilled with the results of this drilling program," said Christopher Miller, Mammoth's CEO. "We have found oil in two Arbuckle wells, and will drill an offset to these producers within five months. Our seismic was very accurate in determining these Arbuckle features which increases the likelihood of success for our planned offsetting wells."
ProTerra's planned offsets are currently subject to rig availability which is currently averaging 90-120 days. ProTerra is also planning to re-enter some existing well bores in this field and use polymer secondary recovery technology to gain even more Arbuckle production from this mature Arbuckle field. ProTerra has a 45% working interest in the leasehold that covers the producing field.
"We really like these Arbuckle fields in Kansas, where there are significant pockets of oil to be found," says Miller. "We are actively leasing and pursuing many prospects in the Arbuckle trend in Central Kansas. We have a team deployed and look to be procuring prospects over the course of the next three months."
About ProTerra Oil and Gas Exploration, Inc.
ProTerra has a three-pronged strategy to acquire oil and gas production and build cash flow. First, using 3-D seismic and well control, ProTerra is developing low-risk drilling prospects in or near existing oil and gas fields. Secondly, it is buying existing abandoned or undeveloped production to re-enter with new technology that can boost or elevate production. Lastly, ProTerra is aggressively leasing substantial acreage positions in Montana, Colorado and Kansas. These acreage positions have generated interest from industry partners.
About Mammoth Energy Group, Inc.
Mammoth was formed with the goal of becoming a recognized regional player in the independent oil and natural gas industry by growing the company's oil and natural gas reserves. The acquisition of its two wholly owned subsidiaries has provided a foundation from which to grow in two excellent regions: northeastern Oklahoma shelf and the Rocky Mountain region.
More information is available at the company's website at www.mammothenergygroup.com.
Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.