ATLANTA, Feb. 26, 2007 (PRIME NEWSWIRE) -- Knight Energy Corp. (Pink Sheets:KNEC) on February 21, 2007, announced that its Lea No. 1 well has been producing quality oil and has been averaging approximately 100 barrels of oil per day.
In addition to the oil production, the Lea No. 1 well is now producing approximately 110 MCF of natural gas per day. Knight is in the process of drilling additional wells on the Lea property.
The Lea property is part of an agreement that includes an option and "right of first refusal" to lease an additional 3,100 acres adjacent to the 400 acres. Knight Energy anticipates that it will exercise the option for the additional 3,100 acres in the near future. If this occurs, the total acres leased will be approximately 3,500. This property is in addition to Knight's original 160-acre lease in Stephens County, TX as well as the recently leased 640-acre parcel in Stephens County, TX and the 1000-acre parcel in Pottawatomie County, Oklahoma. (The 400-acre Lea property was previously discussed in a press release dated November 17, 2006.)
William J. Bosso, Chief Executive Officer of Knight Energy, commented, "We are pleased that Knight Energy has made the transition from being an oil and gas exploration company to also being an oil and gas producer, and is now receiving production revenue. At the same time, we are continuing our previously announced plan of acquiring strategic oil and gas properties for drilling and production."
About Knight Energy Corp.
Knight Energy was formed on March 2, 2006 for the purpose of operating and developing energy related businesses and assets. Also, in March 2006, Knight acquired control of independent oil and gas services company, Charles Hill Drilling, Inc. Charles Hill Drilling also owns a drilling rig and other oil and gas equipment. Through a subsequent transaction, Knight Energy increased its ownership to 100% of Charles Hill Drilling, Inc. Knight Energy is currently managing the drilling rig and using it to drill wells for the Company's account.
Knight Energy is currently reviewing further acquisitions and investments in the oil and gas industry as well as other energy related businesses and assets. Additional information can be found by visiting its website at www.knightenergycorp.com.
Forward-Looking Statements:
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining oil and gas prices, and other economic factors. The Company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.