Conservative Natural Gas Price Estimates Indicate a Net Present Valuation of the Field on a PV10 Basis to Be in Excess of $60 Million
CHEYENNE, Wyo.--(BUSINESS WIRE)--Platina Energy Group, Inc. (OTCBB:PLTG - News; Frankfurt:O5Y - News) reports to its shareholders today that it has worked with its natural gas collection alliance to complete the necessary upgrades for the compressor and connection hookup capacity at its Appalachian prospect.
The prolific Devonian Shale formation is a well-proven natural gas reservoir located in Tennessee and is operated by Appalachian Energy, a wholly-owned subsidiary of Platina Energy Group.
Appalachian Energy was formed as part of the acquisition of approximately 50 well sites in the Devonian Shale formation. Subsequent to acquisition, the Company expended resources to provide scientific data for the field by geological and petroleum engineering report. This report using conservative natural gas price estimates indicates a net present valuation of the field on a PV10 basis to be in excess of $60 million.
As a result of a third party alliance, Appalachian Energy was able to complete the necessary upgrades at no capital costs to Platina or Appalachian Energy.
Typical gas wells producing in this area require commercial grade compression to enter delivery pipelines as compared to local gathering lines. High-pressure collection lines are common in areas where longer pipeline to end user runs exist. The reliability for continued demand for gas purchasers is a major benefit to high-pressure line hook ups.
"These upgrades are an integral part of our pre-site drilling preparations," said Mr. Steve Eversole, President of Appalachian Energy. "In order to meet our full-scale operational plan we dedicated the required resources to expand the allowable capacity by making upgrades to the collection point. We are truly pleased to report today that we have completed these necessary upgrades."
About Platina Energy Group
Platina is an E & P Company that owns several oil and gas lease properties in Texas and Tennessee. The Company is currently producing oil from one field. It also owns oil and gas leases for proven and unproven reserves for which it is in the process of obtaining drilling permits. Additionally, Platina owns rights to a German inspired, proprietary oil recovery technology that allows for the cost effective recovery of certain types of untapped reserves that exist through out the world.
SEC DISCLAIMER
Information contained herein may contain forward-looking statements which are not guarantees of future success or that there cannot be losses. The actual presence or recoverability of reserves for optimal and timely recovery, well costs or schedules or other matters cannot be promised. This release contains "Safe Harbor" provisions of the US Private Securities Litigation Reform Act of 1995 & involves risks and uncertainties, which could cause actual results to differ materially from those estimated herein.
Platina Energy believes the forward-looking statements are based on current reasonable assumptions but can give no assurance that results will be achieved. Unpredictable & unanticipated risks, trends and uncertainties including inability to accurately forecast operating results; the potential inability to achieve profits or have cash flow; access to financing; and other must be understood.
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