IRVINE, Calif., Jan. 14, 2014 (GLOBE NEWSWIRE) -- Javan Khazali, President of New Western Energy Corporation ("New Western Energy" or the "Company") (OTCQB:NWTR), an independent energy company engaged in the acquisition, exploration, development, and production of oil, gas and other minerals in North America, today issued a formal update in the form of a Letter to Shareholders.
Dear Shareholders, Business Partners, and Friends:
At New Western Energy, we are helping address one of the United States' greatest challenges - energy independence. Meeting this challenge will require the ongoing efforts of many diverse stakeholders and New Western Energy is committed to being a part of the solution.
Our business took several steps forward in 2013. We strengthened our balance sheet, expanded our land portfolio, and increased production. We are proud of our accomplishments and even more excited about our opportunities heading into 2014.
In August 2013, we completed significant infrastructure work on ten leases across 1,750 acres with 125 wells and 10 disposal wells in Oklahoma. Among other things, the infrastructure work completed included road and site improvements, upgrading electrical systems on motors and panel boxes, construction and installation of tank batteries, piping extensions from wells to storage facility, casing work on the wells, mounting and testing metering equipment, and other rework on existing wells. As a result of the infrastructure updates, we believe that the Oklahoma assets are better prepared for the development work planned for 2014. We continue to focus on bringing existing wells back online and are encouraged by the production potential considering the historical production from the reliable Bartlesville Sand formation.
In October 2013, we opened additional pay zones on existing gas wells in the Fredonia Prospect located in southeastern Kansas. These wells were opened at depths between 600 and 1,400 feet to tap known reserves of natural gas, resulting in a 100% increase in gas production from Farwell 34-D3. The Fredonia Prospect has a total of nine wells which the Company intends to recomplete in order to bring additional natural gas production online. According to a reserve report prepared by Lee Keeling And Associates Inc., International Petroleum consultants, the Fredonia Gas Prospect contains approximately 1,185,530 MCF of proven remaining recoverable gas reserves. As a result of our success with the recompletions and to exploit the proven reserves, we are expanding our development program to include the drilling of new wells.
In November 2013, we completed two private placements for gross proceeds of approximately $2.7 million. The raising of these funds is a vote of confidence in our ability to bring projects into production on time and within budget. Consistent with our growth strategy, funds raised will be utilized to develop existing assets and to acquire additional producing assets.
As 2014 gets underway, we are well positioned to exploit various opportunities, including the recently announced letter of intent to acquire Legend Oil and Gas, Ltd. ("Legend ") (LOGL). Legend is an oil and gas exploration and production company with projects located in Western Canada (Berwyn, Medicine River, Boundary Lake, and Wildmere in Alberta, and Clarke Lake and Inga in British Columbia) and in the United States (Kansas). For the nine-months ended September 30, 2013, Legend reported total production of 163 barrels of oil equivalent per day (BOE/d). In both the United States and Canada, we are confident in our ability to enhance the overall production of Legend's assets through additional drilling, exploitation of behind pipe reserves and expansion of the asset base. New Western Energy will further benefit from the Legend acquisition based on the 50 years of combined experience and expertise of Marshall Diamond-Goldberg and John Riad, both of whom will become part of our management team.
In closing, I've never been more excited about our company and its opportunities going forward. On behalf of everyone at New Western Energy, I want to thank you for your continued support and investment. Furthermore, I want to wish you all a very happy and healthy 2014!
About New Western Energy Corp.
New Western Energy Corp. is an independent energy company engaged in the acquisition, development, production, and exploration of oil, gas and minerals primarily in North America. To learn more about the Company, visit: www.newwesternenergy.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated production. Actual results could differ from those projected in any forward-looking statements due to numerous factors including, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
New Western Energy (949) 435-0977
New Western Energy Corp.
Irvine, California, UNITED STATES
New Western Energy (949) 435-0977
Day's Range: 0.18-0.19
Previous Close: 0.18
Market Cap: 12.42M
Day's Volume: 25,375