HOUSTON, Jan. 17, 2008 (PRIME NEWSWIRE) -- Hanover Gold Company (OTCBB:HVGO), today announced that, in the next few days, the company plans to spud two new wells in the Orcutt field as part of a much larger planned drilling program at the company's Orcutt property, located in Santa Barbara County, California.
These new wells will target oil from the shallow Opal A (diatomite) formation. Over the last 100 years, this oil rich resource has been well-documented as potentially productive.
"We are excited about these projects and the potential they bring to our company and our shareholders. We are also proud to be partnering with what we consider to be the Dream Team of Thermal Recovery," said Hanover CEO Rocky Emery, referring to noted petroleum reservoir engineers, Ramon Elias and Michael Prats.
Diatomite is a shallow formation (from surface down to 2,000 feet) with porosity ranging from 50-70 percent and oil saturations in excess of 50 percent. The major companies began cyclical streaming of this resource in Kern County seven years ago, and production from the diatomite is now in excess of 120,000 bbls of oil per day.
The company owns an interest in some 4,000 acres in the Orcutt field, which currently has 40 wells in the deeper Monterey that are producing. The company and its operating partner will be reworking the Monterey to enhance this production.
Hanover Gold Company Inc. recently acquired the assets and liabilities of Rock Energy Partners LP under the terms of an asset purchase agreement dated Dec. 21, 2007, and announced Rock Energy as the surviving operating entity. Rock Energy Partners will continue to trade under the symbol "HVGO" until a new symbol is issued by the NASD. The new public entity will be renamed Rock Energy Resources Corporation.
About Hanover Gold Company
Originally formed in April of 2004 as Rock Energy Partners LP, Hanover Gold Company is an oil and gas company based in Houston, Texas, that seeks out untapped, onshore natural gas and crude oil resources using cutting-edge 3D technologies. Hanover Gold currently produces and sells natural gas and crude oil from two locations: the Wilcox trend in Colorado County, Texas, and the Monterey Formation in Santa Barbara County, California.
Safe Harbor Forward-Looking Statements
Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of Hanover Gold and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.