CHEYENNE, Wyo.--(BUSINESS WIRE)--Platina Energy Group, Inc. (OTCBB:PLTG - News; FWB:O5Y) is pleased to announce today that it has begun upgrading the oil collection system currently in place on its Young County prospect.
Platina Energy's Young County prospect includes currently producing wells and proven reserves worth millions of dollars according to independent data. Initial production of oil, based on average pay-zone production data, indicates that daily production ranges from 20-50 barrels per day; however, advancements in recovery technology may be able to increase well productivity by 200% or more.
Upgrades to the current oil collection and storage system in Young County are being performed in order to accommodate newly anticipated drilling activities as part of its financial joint venture relationship with Zone Petroleum. Zone Petroleum is an oil and gas finance company whose primary target is Central and South American exploration opportunities. Platina and Zone entered into a joint venture agreement to develop the Young County prospect owned by Platina.
The potential upside for Platina's Young County prospect could be worth millions of dollars in oil revenues, according to third party reports. Platina will manage and operate the drilling and collection activities.
Depending on production reports, Zone Petroleum expects to drill the first two new wells and then assess the merits of continuing with the project. At such time, Zone shall have the exclusive first right of refusal to continue with the entire current drilling and development project.
Platina Energy anticipates acquiring more acreage in the Young County region and expanding operations through additional joint venture partnerships with Zone.
About Platina's Young County Prospect
Young County is a shallow well oil prospect located in West Texas. Currently, Platina Energy is producing oil from five (5) operating wells on approximately 372 oil and gas lease acres with more than 50 additional drilling locations. The Company has the capability to do turnkey drilling and completion on each well for $215,000-$300,000. ROI (Return on Investment) projections for the prospect are 4-7 times over the life of the wells based on an Independent Geological Evaluation.
Platina is an E & P Company that owns oil and gas lease properties in Texas and Tennessee. The Company currently produces oil from one field. It also owns oil and gas leases for proven and unproven reserves for which it is currently obtaining drilling permits. Platina owns rights to a German-inspired, proprietary technology that allows for the cost-effective recovery of certain types of untapped oil reserves.
SEC DISCLAIMER
Information contained herein may contain forward-looking statements which are not guarantees of future success or that there cannot be losses. The 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.
Platina Energy believes 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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