Wentworth Energy, Inc. announced today that the Company has commenced the sale of gas from its East Texas mineral block. Production from Wentworth Energy's wells will gradually increase over the next few months, as production from the company's first discovery well is enhanced and other wells successfully completed on the mineral block are tied into the pipeline.
Wentworth Energy's gas is being sold under contract to Texla Energy Management Inc. (www.texlaenergy.com). The Company's first discovery well, Wentworth Energy No.1 Brakens' (#1 Brakens') was completed in November 2006 and now that production facilities and the pipeline are in place, this well is now in production and the sale of gas has commenced.
The start of the sale of gas from the mineral block is the result of Wentworth Energy's on-going drilling program in Freestone and Anderson Counties. Wentworth Energy has also successfully drilled three additional wells on the mineral block and is in the process of completing the Red Lake Gas Unit #1-R, the Red Lake Gas Unit #2-W, and the Red Lake Gas Unit #3-W wells. Following the successful completion of each of these wells they will be tied into the pipeline and put into production.
"This is a major milestone in the development of the mineral block," said Tom Temples, Vice President of Exploration and Production at Wentworth Energy. "This gives us a great foundation on which to further build our business in East Texas."
"We began our drilling program just a few months ago, and now production has commenced on the mineral block and will start generating operating cash flow," said John Punzo, Wentworth Energy's chairman and chief executive officer. "I want to congratulate everyone involved in reaching this important corporate milestone in the start of gas sales from the mineral block, it's been a great team effort. We're proud of the strong foundation we have established in developing the mineral block and look forward to expanding our drilling program over the next several months," Punzo added.
In July 2006, Wentworth Energy acquired 27,557 gross acres of oil and gas fee mineral rights in East Texas, and Barnico Drilling Inc., an active oil and gas drilling company in East Texas. The mineral package lies in east central Freestone County and west central Anderson County in the active East Texas Basin.
In September 2006, Wentworth Energy commenced drilling operations on the mineral block, and has now put its first discovery well into production. The Company is currently in the process of completing three other wells, which when successfully completed will be tied into Wentworth's production capacity. Wentworth Energy continues to expand its drilling activities and recently permitted several additional locations for new wells in the Woodbine formation. The Company has also identified and expects to permit several locations to begin development of the Rodessa formation.
On February 1, 2007, Wentworth Energy announced that it had acquired a 50% working interest in two producing gas wells from another operator on the mineral block. The Company purchased the interest in these wells to gain access to up to 640 acres of the mineral block that was held by production from the wells and was unavailable to Wentworth Energy for drilling until the Company became an owner of the wells.
On November 2, 2006 Wentworth Energy announced that Marathon Oil Company (NYSE: MRO - News) had signed a three-year agreement to lease approximately 9,000 acres of the 27,557-acres to drill deep wells on the mineral block. In addition, Wentworth Energy and Marathon Oil Company entered into a Joint Operating Agreement giving Marathon the right to participate up to 50 percent on the shallower zones.
About Wentworth Energy, Inc.
Wentworth Energy is an independent exploration and production company focused on developing North American oil and natural gas reserves. The Company owns a 27,557-acre mineral block in east central Freestone County and west central Anderson County in the active East Texas Basin, as well as an active oil and gas contract drilling company, Barnico Drilling, Inc., which has serviced East Texas drilling demand since the late 1970s. Wentworth, through its subsidiary Barnico Drilling, is focused on rapidly expanding the number of operating wells on its existing acreage in East Texas. Wentworth Energy applies innovative technologies toward the discovery and development of a diverse portfolio of high-value, low-risk energy projects in North America, including the oil and gas fields of East Texas. Wentworth Energy trades under the ticker symbol WNWG. For more information on the Company visit www.wentworthenergy.com
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects," "projects," "plans," "anticipates" and certain of the other foregoing statements may be deemed "forward-looking statements." Although Wentworth Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release such as "producing," "production," "discovery," "commercial viability," and "reserves" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form SB-2, File No. 333-136878, and our Form 10-KSB for the fiscal year ended December 31, 2005 and Form 10-QSB for the quarterly period ended September 30, 2006 available from us by contacting the Investor Relations Department. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
Contact:
Wentworth Energy, Inc.
Investor Relations:
Barry Forward, 1-800-725-9149
Corporate Communications & Investor Relations
investors@wentworthenergy.com
Fax: 817-288-0983
or
Corporate Offices, 877-329-8388
Fax: 817-288-0983
www.wentworthenergy.com
Source: Wentworth Energy, Inc.
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