DALLAS, TX–(Marketwired – Aug 13, 2013) – Petron Energy II, Inc. (“Petron II” or the “Company”) (OTCBB: PEII) projects that it will likely become profitable in the 2nd Quarter of 2014.
Petron Energy II, Inc., together with its subsidiaries, engages in the acquisition and development of properties for the production of crude oil and natural gas, the transportation of natural gas through its pipeline subsidiary and well servicing through its servicing subsidiary. The Company’s operations are primarily based in the United States.
Petron Energy II, Inc. is a secondary recovery company, and its game plan is to begin water/gas flood operations on each of its leases to achieve optimal production levels.
Petron Energy II, Inc. projects that if it can continue its current pace of production improvements and successfully earn its second tranche against its $5 million line of credit from TCA Global Credit Master Fund, LP (“TCA”), there is a strong possibility that it will become profitable by late 2nd quarter 2014.
Floyd Smith, President and CEO of Petron Energy II, Inc., states, “We really like how our development plan is materializing. We recently closed on several key leases which are positioned in an area which offers very good production history. Flooding these leases should allow peak daily production rates in the range of 35 – 50 BO/D from each lease after 90 days of flooding procedures. We have 18 leases to implement secondary recovery flooding procedures on.”
“Currently, we are working with our funding source, TCA, to structure our second tranche,which should allow us to put 2 – 4 of our leases into full secondary recovery operations. A second tranche of $500,000 – $1,000,000 should allow us to grow our daily production to 100 – 200 BO/D. Our breakeven is achieved at 100 BO/D.” Smith further states, “We feel the execution of our plan of secondary recovery operations should increase oil and natural gas production rates significantly. The company is projecting that this significant growth in oil and natural production should allow it to achieve profitability sometime during the latter part of the 2nd quarter 2014.”
NOTICE: This news release contains “forward-looking statements” (statements which are not historical facts) made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.