HENDERSON, NEVADA--(Marketwire - 05/16/11) - Fortune Oil & Gas, Inc. (PINK SHEETS:FOGC - News) (www.fortuneoilandgascorp.com) subsidiary Cressent Energy (http://www.cressentenergy.com/) is reopening 6 shallow oil wells in North Texas.
Newly acquired U.S.-based oil and gas company Cressent Energy expects to reopen six shallow wells in North Texas. It takes about 3 days to put the wells back in business and Cressent expects to pump out 20-25 barrels of oil per day from these reopened wells.
Cressent anticipates producing up to 200 barrels of oil a day by the end of the year after reopening almost three dozen Texas oil wells. With oil prices hovering around $100 per barrel, it's looking at pumping approximately $20,000 worth of oil to the surface each day. That translates to about $7 million annually if everything goes as anticipated. Cressent has all of the equipment necessary to operate these relatively shallow oil wells, and it won't need to spend additional funds to acquire new machinery in order to exploit them.
Oil wells are sometimes reopened because rising prices have made what were once economically unviable deposits viable once again. Sometimes wells still have viable reservoirs of gas oil but are overlooked because the tools used when the well was originally opened were not technically advanced enough to detect all of the available deposits. It would seem that there may be life left in many a well once considered exhausted, and in times such as these, with oil prices rising ever higher, these wells become commercial viable once again.
FOGC followers may expect frequent and timely updates from the company on any new developments in a timely fashion.
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