TULSA, Okla., Feb. 13, 2007 (PRIME NEWSWIRE) -- Well Renewal, Inc. (Pink Sheets:WRNW) has released the results of an oil reserve study that was commissioned on a 320-acre lease that the company currently owns and operates in Rogers County in northeast Oklahoma. Drilling records indicate that 119 wells were drilled on the 320-acre lease between 1917 and 1979. Production from the leases reached maximum levels of 9,000 barrels of oil per month during the 1970s. The wells were temporarily abandoned during the oil price collapse of the mid-1980s and the lease was abandoned by the operator. The Bartlesville sand was the primary producing horizon of the wells on the 320-acre lease.
Initial production rates from the 119 wells drilled on the 320-acre lease ranged from 5 to 60 barrels of oil per day. The reserve report estimated that only a small percentage of the original oil in place under the lease had been produced. Estimates of remaining recoverable oil reserves range from a low of 600,000 barrels of oil to a high of 1,200,000 barrels of oil if complete secondary and tertiary oil recovery projects are implemented. Utilizing the current $60 price of a barrel of oil yields a recoverable gross oil reserve value of $36-72 million.
Well Renewal expects production to be re-established in the wells contained on the 320-acre lease after an extensive workover program currently planned for the lease during the second quarter of 2007. Well Renewal will utilize the services of Pro-Formance Oil Field Services, LLC, a wholly owned subsidiary of Well Renewal. Pro-Formance will supply a workover rig to re-enter all of the wells located on the lease package to restore the wells to a producing status.
Will Gray, CEO of Well Renewal, stated, "This 320-acre lease has produced significant quantities of oil in the past and would still be producing today except for the collapse of oil prices during the mid 1980s which caused numerous wells in our operating region to be abandoned. In addition to the wells to be re-entered and production re-established, our geological and engineering staff has identified 20 additional drilling locations on this lease. We anticipate including these new locations in our 2007/2008 drilling and completion budget. We anticipate production levels in excess of 3,000 barrels of oil per month from this lease later this year. Successful completion of the drilling and production of these new wells will add greater than $2,000,000 to the revenues and cash flows for Well Renewal during 2007."
About Well Renewal, Inc.
Well Renewal, Inc., headquartered in Tulsa, Oklahoma, is principally engaged in oil and gas exploration as well as enhancement and recovery of abandoned and low production oil properties, oil field services and petrochemical distribution.
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.