IRVINE, Calif., Aug. 31, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), announced another major discovery of more oil and gas in the wells in the Premont Northwest field in Jim Wells County Texas. Progas Energy Services is Universal's joint venture partner in developing the field.
According to Progas, in previous reports regarding the Guerra #2 well, this well was drilled to 4000 feet and tested oil and gas in 12 potentially productive sands at depths from 2200 to 3950 feet, encountering a total of 118 net feet of natural gas pay.
After running 45 days of tests to draw down the pressure of each of the productive zones in the well, and selling test gas to the Tennessee Gas pipeline, the open flow calculations were performed by independent engineer AP Yang PE of Houston. The absolute open flow rate calculations indicated the lower lobe flow of the Laughlin oil sand deposit tested at 15,541 mcf per day, (mcf/d), or 15,541,000 cubic feet of gas per day. The upper lobe flow tested at 5,063 mcf/d or 5,063,000 cubic feet per day
Dan Polk, President of Progas says, "The combined total of 20,604 mcf/d or 20,604,000 cubic feet per day, is an exceptional rate for a well producing from a depth of 3324 to 3340 feet in depth, at a total of 16 net feet of natural gas pay. This is a new zone that was not expected to produce natural gas, and therefore new field discovery documents will be filed with the Railroad Commission of Texas (RRC), which has primary regulatory jurisdiction over the oil and natural gas industry in Texas. In addition to the Laughlin sand, there are at least another 9 zones that cored and tested natural gas in over 70 feet of gas sand, and 2 oil sands that tested and flowed oil when perforated, that are behind pipe below the gas zones for production at a later date. Though the extent of the field is unknown at this time, the first three wells were drilled far enough apart to allow us to drill 15 to 20 development wells, which drilling should be initiated by the partners in the next 30 to 60 days. We anticipate being able to develop the balance of the field and future drilling from production revenues generated by these additional wells. Most operators would be happy to have these kind of test results from wells that are 2 to 3 times its depth."
The calculated open test flow rates are not the flow rates at which the wells will normally operate to produce natural gas, but indicate the absolute open flow potential of the well. The wells will normally produce natural gas at a rate of 5% to 15% of the open flow rate.
According to Progas, third party reserve estimates for the Guerra #2 well have not been completed at this time, however the preliminary estimates are 100,000 to 150,000 barrels (Bbls) of oil, and 1,5000,000 mcf to 2,500,000 mcf (1.5 billion cubic feet, "bcf " to 2.5 bcf) of natural gas which should provide the investors an exceptional return on their investment. The gas reserves and tests results are approximately 60% higher for this well than was previously announced in their news release on March 3, 2011.
For the Guerra #2 well alone, based on the August 29, 2011 NYMEX, West Texas Intermediate (WTI) price of, $87.42 per barrel, the 100,000 to 150,000 Bbls of oil would have an estimated value of $8.74 to $13.11 million. Based on the August 29, 2011 NYMEX price of, $3.81 per mcf, the 1,500,000 to 2,500,000 mcf of natural gas would have an estimated value of $5.71 to $9.52 million.
Universal's President, Vince M. Guest states, "I'm pleased to report another major success for us in this discovery. The estimates of oil and gas are from only one zone in the Guerra #2 well. There are at least another 9 zones and 2 oil sands that are not included in these estimates of revenues for oil and gas. The partners, including Universal Bioenergy, that have a working interest in the wells, would receive 60% of the estimated total value of the oil and gas produced and sold from the Guerra #2 well alone."
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Universal Bioenergy Inc. is an alternative energy company, and intends to create and market natural and alternative energy sources including natural gas, solar, biofuels, wind, synthetic fuels and related energy technology products. It plans to build the company into a prominent player in alternative energy.
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