DALLAS, Texas, Nov. 21, 2013 (GLOBE NEWSWIRE) — via PRWEB – Petron Energy II, Inc. (“Petron II” or the “Company”) (PEII)
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 based in the United States.
Petron Energy II, Inc. announced today that in the company’s October 30, 2013 press release it stated it signed a letter of intent to purchase a 5% minority position in the Bakken Shale. Smith states, “We are currently meeting with investment bankers to obtain financing for the Bakken deal, we are experiencing a lot of interest and estimate having the Bakken deal closed by yearend 2013.”
Additionally, after its evaluation period for the LaNina #2, Covenant #5 and the Gerner #2 wells, each well lacks the natural virgin reservoir pressure to establish commercial production in the historical Dutcher Sandstone. Although the natural pressures were not present the company’s swab test confirmed the presence of oil as stated in the July 11, 2013 press release. The Dutcher Sandstone has been productive in this area since the mid 1920′s and is a historically proven oil and natural gas sand. Floyd Smith, President and CEO of Petron Energy II, Inc., states “With the many years of primary production already achieved in the Dutcher Sandstone we knew these three wells had Dutcher sands in them which had not be produced, which if they are not pressure depleted should allow us the potential for acceptable commercial rates of production.” Smith further states, “Now that we have completed our evaluation period and discovered each well will not achieve commercial production from natural reservoir pressures but will benefit from our CO2-EOR(Enhanced Oil Recovery) program, we intend to begin injecting CO2 into the Dutcher reservoir to increase the reservoir pressure in the Edwards field in the next 7-10 days.”
Smith goes on to say, “In our November 6, 2013 press release we stated that we would begin Secondary recovery operations in Oklahoma during the month of November. Performing CO2 injection procedures on the Dutcher sandstone will allow us to recharge the Edwards leases, which includes the LaNina #2, Covenant #5 and 16 other wells and effectively produce more original in place oil. We are a secondary recovery company which relies on production from the development of each lease and CO2-EOR is the process which provides constant commercial production at acceptable levels.”
Additionally, Petron II is scheduled to drill a water source well for the Snyder/Simon lease which will allow it to begin CO2-EOR operations early next month. This lease is comprised of 13 existing Dutcher Sandstone wells, as previously stated the Dutcher Sandstone has been oil and natural gas productive since the mid-1920′s. The company has 18 leases which it expects to implement CO2-EOR; Petron II believes the estimated daily production range for each lease is 30 — 50BO/D.
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.