HOUSTON, April 29, 2009 (GLOBE NEWSWIRE) -- Aztec Oil & Gas, Inc. (Pink Sheets:AZGS) announced today that its newest drilling partnership, the Aztec VIII A Oil & Gas LP, has successfully participated in a second successful natural gas well in Goliad County, Texas.
The West Powell #2 well was drilled to an approximate depth of 1,750 feet. The well encountered two Miocene gas sands, one at 1,655 feet (lower zone) and the other at 1,542 feet (upper zone). The lower zone sand is 33 feet thick and the upper zone sand is 28 feet thick. The lower zone will be produced first and the upper zone will be completed and produced after the lower zone is fully production depleted.
Currently the lower zone of this well is estimated to be produced at a restrained flow rate of approximately 200,000 cfgpd (cubic feet per day) into a Duke Energy gathering system. Estimated reserves in this zone, utilizing the log, 3D seismic, and the flow test should be between 320,000,000 and 530,000,000 cfg, or 3/10(ths) to 1/2 bcf (billion cubic feet) of natural gas. As with all wells, to truly calculate reserves, the well will need to produce for several months.
Based on the success of the previously announced West Powell #1 and this West Powell #2 well, Aztec Oil & Gas and Resaca Resources (Operator for Aztec) have identified and spudded two (2) additional well locations that are direct analogs of the West Powell #1 and #2. It is anticipated that these potential wells will be drilled immediately.
"The West Powell #1 and #2, and the confirmation of the two additional analog locations, are proving to be a successful start for the Aztec VIII A Partnership. While we presently are inclined to focus on oil drilling, both oil wells and gas wells are evaluated on a stringent economic, rather than emotional scale. If the economics favor the partnership we will drill for gas, as we did in this instance. Aztec's focus always remains on making the most money for its shareholders and investor partnerships in every situation," stated Waylan R. Johnson, President of Aztec Oil & Gas, Inc.
About Aztec Oil & Gas, Inc.
Aztec is an oil and gas exploration, development and production company focusing on numerous areas throughout the U.S. It owns a minority interest in a 29-well oil and natural gas program in Pennsylvania. Aztec also owns a minority interest in two producing Deep Lake wells in Cameron Parish, Louisiana ranging from 13,600 feet to 14,300 feet in depth. Aztec additionally owns a minority interest in one Wharton County, Texas producer; and one Barnett Shale play area well located in Wise County, Texas which had good initial oil and gas shows, is producing, but is experiencing mechanical difficulties. Aztec has a minority interest in three producing gas wells in Oklahoma of which two are conventional wells, and the third is a horizontal, Coal Bed Methane (CBM) well.
In 2007, through its wholly-owned subsidiaries, Aztec Energy, LLC and Aztec Drilling & Operating, LLC, Aztec completed and now manages a successful four (4) well drilling program in the Doddridge County area of West Virginia in which it owns a 30% interest. Aztec Energy, LLC also manages a second Aztec drilling partnership focused in Tyler County, West Virginia in which it owns a 30% interest. In 2008 Aztec's third drilling partnership subsequently successfully completed two wells in Tyler County, WV. Aztec also manages this third partnership and owns a 30% interest in same. The fourth drilling partnership, referenced in this press release, focuses on drilling in Texas. Aztec also owns a 30% interest in that partnership and acts as its managing partner. In general clarification of its activities, Aztec sponsors low risk, development drilling programs which include significant tax benefits, all of which are sold through FINRA Registered Broker Dealers to Accredited Investors. Aztec's drilling programs are very unique and also incorporate a sophisticated exit strategy for investors.
For more information on Aztec Oil & Gas, Inc., please visit http://www.aztecoil-gas.com.
This presentation/document contains certain statements, estimates and forecasts with respect to future performance and events. All statements other than statements of historical fact included in this presentation/document, any Aztec Memorandum, or the Aztec Website, including statements regarding future performance of events, are forward-looking statements. All such forward-looking statements are based on various underlying assumptions and expectations and are subject to risks and uncertainties which could cause actual events to differ materially from those expressed in the forward-looking statements. As a result, there can be no assurance that the forward-looking statements included in this presentation, any Aztec Memorandum, or the Aztec Website will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this presentation/document, any Aztec Memorandum, or the Aztec Website might not occur. Accordingly, investors should not rely upon forward-looking statements as a prediction of actual results. Also, the price Aztec Oil & Gas, Inc., its managed partners and the other parties involved in any properties receive for the oil and natural gas produced on their properties may be less than quoted NYMEX prices at any given time. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events, subsequent circumstances or otherwise.