Contact Information: Contact: Thomas J. Rozycki, Jr. CJP Communications for Platinum Energy Resources, Inc. Public & Investor Relations 212-279-3115 x208 trozycki@cjpcom.com
Platinum Energy Resources, Inc. Provides Operations Update
| Source: Platinum Energy
NEW YORK, NY--(Marketwire - July 15, 2008) - Platinum Energy Resources, Inc. ("Platinum
Energy") (OTCBB : PGRIU ) (OTCBB : PGRI ) (OTCBB : PGRIW ) today announced
updated operational metrics and corporate initiatives for the period ended
June 30, 2008.
Platinum's net daily production averaged 1,240 BOEPD (Barrels of oil
equivalent per day) during June 2008. This represents a 27% increase in
production volumes when compared to the average daily production for the
first quarter of 2008. Production increases were primarily attributable to
new drill activity, in addition to three key workovers.
Robert L. Kovar, Chief Operating Officer of Platinum Energy, stated, "We
are committed to building an outstanding organization with the addition of
several key personnel including: Kevin Neeley, Vice President -
Exploitation; Dean Mathiews, Operations Manager; and Chester Sackett,
Executive Director of Health, Safety, Security and Environmental. These key
leaders are intensifying the focus on our growth plan and prioritizing our
opportunities to assist in achieving our goal of 2,000 BOEPD by the end of
2008."
"We are also in the final stages of our search for a CFO and we expect to
announce an appointment in the near future," added Tim Culp, Platinum
Energy's Chairman of the Board. "Our new leaders are integrating well with
our existing staff, and their enthusiasm is contagious. Our current
personnel are excited about the renewed focus on growth and the expansion
of our capital program."
Commenting on his initial assessment of Platinum Energy's opportunities,
Neeley said, "We have an excellent property base and our current focus is
to prioritize our capital projects. We have already begun a pilot upgrade
to our waterflood in the Ira Unit in Scurry County, Texas and expect to
expand the waterflood by year end in an effort to significantly increase
production by the first quarter of 2009. We have also completed a 3D
seismic survey in Palo Pinto County, Texas, and once the results of the
survey are evaluated, we plan to drill several Barnett Shale horizontal
wells in the fourth quarter. If successful, these wells will be the
initial phase of an expanded drilling program on this acreage in 2009."
"We successfully re-entered an idle well and re-established production in
the Wilcox interval," added Jim Dorman, Senior VP of Geology, commenting on
the Tomball field. "The well is currently producing approximately 600 MCFD
before stimulation from an interval that had been abandoned over 50 years
ago. We plan to fracture stimulate the well to clean up skin damage that
occurred when the well was initially drilled in the 1950s with the obvious
goal of increasing productivity. We have plans to re-complete another well
in the Tomball Field to re-establish production from a similar abandoned
Wilcox zone. If successful, we may expand development of the Wilcox
formation within the field."
Barry Kostiner, Chief Executive Officer of Platinum, added, "Our focus in
the second quarter has been on strengthening our organization and
integrating the Maverick Engineering, Inc. acquisition. We have been able
to leverage synergies with Maverick to improve production and cash flow.
With the additional resources now available to us, we expect to deliver
improved results over the increases we have already seen in the second
quarter. We are extremely excited about the momentum that we are beginning
to build."
About Platinum Energy
Platinum, based in Houston, Texas, is an oil and gas exploration and
production company that has approximately 37,000 acres under lease in
relatively long-lived fields with well-established production histories and
is currently engaged in drilling, developing and exploiting these
properties to provide long-term growth in stockholder value. Platinum's
strategy calls for the use of hedge financing to maximize profit and reduce
risk resulting from volatile energy markets.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. In some cases, forward-looking statements can be identified by
words such as "believe," "expect," "anticipate," "plan," "potential,"
"continue," "intend" or similar expressions. Forward-looking statements
also include the assumptions underlying or relating to any of the foregoing
statements. Such forward-looking statements are based upon current
expectations and beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements contained in this press release may include statements about
future financial and operating results. These statements are not guarantees
of future performance, involve certain risks, uncertainties and assumptions
that are difficult to predict, and are based upon assumptions as to future
events that may not prove accurate. Therefore, actual outcomes and results
may differ materially from what is expressed herein. In any forward-looking
statement in which Platinum expresses an expectation or belief as to future
results, such expectation or belief is expressed in good faith and believed
to have a reasonable basis, but there can be no assurance that the
statement or expectation or belief will result or be achieved or
accomplished. All forward-looking statements included in this press release
are based on information available to Platinum on the date hereof. The
following factors, among others, could cause actual results to differ from
those set forth in the forward-looking statements: volatility of oil and
gas prices, the need to develop and replace reserves, the substantial
capital expenditures required to fund operations, exploration risks,
uncertainties about estimates of reserves, competition, government
regulation, costs and results of drilling new projects, and mechanical and
other inherent risks associated with oil and gas production.; as well as
other relevant risks detailed in Platinum's filings with the Securities and
Exchange Commission. Platinum does not assume any obligation to update the
information contained in this press release.