Contact Information: Contact: Don Kirkendall President 713-968-9290
Petro Resources Announces Successful Wells and Operational Update
| Source: Petro Resources Corporation
HOUSTON, TX -- (MARKET WIRE) -- December 28, 2006 -- Petro Resources Corporation (AMEX : PRC ) ("the
Company") announced today recent results of its several exploration and
drilling programs. The following discoveries and results post-date the
disclosures contained in the Company's third quarter report on Form 10-QSB
filed with the SEC on November 14, 2006.
Petro Resources announced that the Silver Oak Operating, Inc. Hill #1 Well,
in DeSoto Parish, LA was successfully drilled and completed with 3
horizontal laterals in the James Lime formation. The well is expected to
be turned to sales January 2, 2007 at an anticipated rate of approximately
4,000 mcf per day with possible increased production rates later in the
month. Petro Resources has a 10% working interest in the prospect.
The Company also announced a discovery offshore with a successful well at
Galveston 310L through its partnership with Hall-Houston Exploration.
Well logs indicate that at least four Miocene sands should be productive.
The well is currently undergoing completion operations. This latest
offshore discovery is the fourth successful discovery of the six prospects
drilled to date by the Hall-Houston Exploration partnership, in which Petro
Resources has a 5.3% interest. The Company is currently participating in
the first of several additional wells in East Cameron 359.
Petro Resources has participated in two recently drilled Canyon sand wells
in Crockett County, Texas bringing the total to four successful wells in
that development program near Ozona, Texas. The Terry Cinco 801 and 903
wells operated by Approach Resources Inc. headquartered in Fort Worth,
Texas are currently undergoing completion operations. The Company has a
9.41% working interest in these wells and expects to have both of these
wells completed and producing soon.
The Company has also recently begun drilling operations in the initial New
Albany Shale wells in Kentucky. The Approach Resources Kyle Dunn #10-1 was
spudded on December 15th and anticipates the well to reach total depth
shortly to be followed by two additional wells in the pilot drilling
program. The entire New Albany Shale prospect covers approximately 72,000
acres in which Petro Resources has a 10% working interest.
The Company has participated with Bayou City Exploration (OTCBB : BYCX ) in
the drilling of the Walker Louisiana Properties 18-1 well, Calcasieu
Parish, Louisiana for an 8.33% working interest. The well encountered
several prospectively productive zones of limited thickness and it was
consequently determined best to plug and abandon the well and not to pursue
completion operations of those zones.
The Company also announced it continued pursuit of an interest in 15 fields
located in the Williston Basin in North Dakota. The properties consist of
approximately 15,000 acres and 150 wells which are currently producing
approximately 520 barrels of oil per day net to the seller's interest. The
Company is pursuing the acquisition of fifty percent (50%) of the interest
currently owned by the seller in the wells and acreage. The Company had
previously announced its expectation for the transaction to close, assuming
satisfaction of certain conditions, on or before December 31, 2006. The
parties have agreed to extend the closing date to January 31, 2007.
For additional information, please view our website at
www.petroresourcescorp.com
About Petro Resources Corporation:
Petro Resources Corporation is an independent exploration and production
company focused on domestic lease acquisitions, exploration, and oil and
gas production.
Forward-Looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements relate to, among other things: (1) the Company's
proposed exploration and drilling operations on its various properties; (2)
the expected production and revenue from those properties; and (3)
estimates regarding the increase in reserve potential of those properties;
(4) the Company's acquisition of the 50% interest in the 15 fields located
in the Williston Basin in North Dakota; (5) the expected production and
revenue from the Williston properties; and (6) estimates regarding the
increase in reserve potential of the Williston property; and (7) regulation
of the Company's industries and markets. These statements are qualified by
important factors that could cause the Company's actual results to differ
materially from those reflected by the forward-looking statements. Such
factors include but are not limited to: (1) the Company's ability to
finance the continued exploration and drilling operations on its various
properties; (2) the Company's ability to acquire the $60 million of
financing required to acquire the Williston Basin properties; (3) the
Company's ability to negotiate and execute mutually agreeable definitive
agreements for its acquisition of the Williston Basin properties; (4)
positive confirmation of the reserves, production and operating expenses
associated with its various properties, including the Williston Basin
properties; and (5) the general risks associated with oil and gas
exploration and development, including those risks and factors described
from time to time in the Company's reports and registration statements
filed with the Securities and Exchange Commission, including, but not
limited to the Company's Pre-Effective Amendment No. 2 to its Registration
Statement on Form SB-2 Form filed with the SEC on July 14, 2006. The
Company cautions readers not to place undue reliance on any forward-looking
statements. The Company does not undertake, and specifically disclaims any
obligation, to update or revise such statements to reflect new
circumstances or unanticipated events as they occur.