DENVER, Nov. 16, 2006 (PRIMEZONE) -- Mammoth Energy Group Inc. (Pink Sheets:MMTH) announced today that its wholly owned subsidiary, ProTerra Oil & Gas Exploration, Inc., has secured more than 23,000 acres in Northwestern Kansas.
After drilling two successful wells in Ellis County, Kansas, ProTerra entered Lane County, Kansas, to further exploit the opportunities of Northwestern Kansas. ProTerra's geologic team has identified 18-20 structures, using well control and sub-surface leads, that it intends to explore.
This area of Northwestern Kansas produces from the Kansas City/Lansing, Marmaton and Mississippian zones. The geologic team estimates that at a minimum there are 12 potential zones of production on the leased acreage, meaning that each well drilled could have multiple zones that contain commercially viable amounts of oil.
Once 30,000 acres have been secured, ProTerra intends to begin shooting 35 square miles of 3-D seismic. The geologic team estimates that this should result in 16-18 drilling prospects, which should generate anywhere from 60 to 100 drilling locations.
"There are numerous fields of oil still to be developed in Kansas despite the vast amounts of drilling that has been done to date," said Christopher Miller, Mammoth's CEO. "We are fortunate that we are able to work with experienced geologists and geophysicists who have a proven track record of finding oil in Kansas. As our leasing activities wind up in Northwestern Kansas, we will start shooting 3-D seismic. With 3-D seismic, we believe we will be able to bring in an industry partner to help us drill our promising prospects," he added.
Since the 1910s, several billion barrels of oil have been produced from the Central Kansas Uplift (CKU), primarily from carbonate reservoirs within the Arbuckle and Lansing-Kansas City groups. Lane County has had recent significant discoveries in the Marmaton and Mississippian formations, causing this area to be very actively explored.
"In this area, we have observed that other companies using 3-D seismic have experienced a success rate of between 60% and 70%," added Miller. "Therefore, we are obviously not alone in our belief that using geological leads followed by 3-D seismic is a very economical way to discover oil and gas in this area. We are very excited about this project and its potential to be a key part of our growth over the next year."
About ProTerra Oil & Gas Exploration, Inc.
ProTerra is concentrating on three low risk strategies that round out steady accumulation of production and growth of monthly cash flow. First, it is developing low risk wells that are in or near existing oil fields where recoverable oil is in smaller amounts but is not as risky or expensive to drill. Secondly, it is working to acquire existing production that is undervalued and where infill drilling can increase reserves dramatically. Lastly, it is currently working on leasing acreage in "hot areas" that are in the path of current industry trends where major activity is occurring.
More information is available at the company's website at www.mammothenergygroup.com.
Cautionary Note: Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.