VIVIAN, La., April 16, 2010 (GLOBE NEWSWIRE) -- Avro Energy, Inc. (OTCBB:AVOE) is pleased to provide the following update with respect to its current oil production on its wells in South Arkansas and North Louisiana. The Company has worked diligently over the first quarter of 2010 to increase its production through its workover program on its wells.
Avro Energy's Current Oil Production Rates
As of today's date, the Company is producing approximately 40 barrels of oil per day.
The Company anticipates increasing this production through the coming quarter as it continues its workover program in South Arkansas.
Corporate Focus
The Company is continuing to design its recovery efforts to optimize the ultimate potential at each lease, and with that in mind, is continuing to follow its business plan of producing its core assets in South Arkansas and North Louisiana. The Company's concentration is on the Company's deeper wells in South Arkansas and acquiring additional deeper prospects in the area for the purpose of increasing the Company's production and cash flow.
Avro Energy's Well-Logging Strategy
The Company feels that significant potential exists for producible uphole zones in its current wells based upon the well logs for these wells.
The Company has reviewed well logs from its wells in South Arkansas with a qualified petroleum engineer and the Company has decided to run a well-logging program which will involve through-the-pipe logging. This is being done to identify potential zones of interest that were not identified in the original logging of the wells. This technique has been used by operators to identify new potential zones of interest and some success has been made in the United States by different operators using this program.
After reviewing the through-the-pipe logging data, it is the Company's plan to perforate the zones of interest with the intent of increasing production.
Avro Energy's South Arkansas Deep Wells
As per its previously disclosed purchase agreement, Avro Energy is currently receiving production in eleven producible deep oil wells located in South Arkansas. Seven of these wells are currently in production with the other four capable of production after workover operations. In addition, the Company has three disposal wells. The deepest of these wells produces from the Smackover formation at 7800 feet, which fits with the Company's plan to look at deeper horizons for zones capable of larger production. The producing wells are productive from the Rodessa, Paluxy, Pettit, Smackover, and Tuscaloosa Formations.
The Company's overall plan is to recomplete all of its current wells. Review of well logs and other information obtained by the Company leads management to believe that there are uphole zones of interest that can be brought into production by perforating these prospective hydrocarbon formations in most of its wells. The Company has reviewed well logs from other deep wells on its leases and is of the opinion that each of the wells has the capacity to produce from uphole formations. To that end, the company's work program will include the latest technology to log these wells through-the-pipe and to determine how best to increase production from the Company's leases.
About the ArkLaTex Oil-Producing Region
The ArkLaTex is a U.S. socio-economic region where Arkansas, Louisiana, Texas, and Oklahoma intersect. The region is centered on the Shreveport/Bossier metropolitan area in Northwest Louisiana. The region's history is heavily linked with the oil industry. The geology associated with the deposition of sediments from the Mississippi River, in particular, makes this area an abundant source for the oil and gas industries, which leads to the high levels of oil production within the region.
About Avro Energy, Inc.
Avro Energy Inc. is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties, and providing oilfield services, primarily in the ArkLaTex region of North America. Avro's objective is to seek out and develop opportunities in the oil and natural gas sectors that represent low risk opportunities for the Company and its shareholders. In addition, Avro aims to seek larger projects that can be developed and produced with Joint Venture partners, with the eventual goal of becoming a junior oil and gas company.
More information about the Company is available at its corporate website at http://www.avroenergy.com. Alternatively, shareholders can call the Company directly at 318-734-4737 or send an email to info@avroenergy.com.
Safe Harbor Statements
We may use certain terms in our press releases and on our website such as "will," "anticipates," "believes," "plans," "goal," "expects," "future," "retained," "valuation," "potential." "interested," and similar expressions are used to identify these forward-looking statements. You should not place undue reliance on forward-looking statements in this press release. You can review and obtain copies of our filings from the SEC's website at http://www.sec.gov/edgar.shtml. The OTCBB has not reviewed or does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and, therefore, involve inherent risks and uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labor disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Actual results and outcomes may vary materially from what is expressed or forecast in such statements due to various risks and uncertainties. These risks and uncertainties include, among other things, the possibility of drilling cost overruns and technical difficulties, volatility of oil and gas prices, competition, risks inherent in the Company's oil and gas operations, the inexact nature of interpretation of seismic and other geological and geophysical data, imprecision of reserve estimates, and the Company's ability to replace and expand oil and gas reserves. Accordingly, stockholders and potential investors are cautioned that certain events or circumstances could cause actual results to differ materially from those projected.