Vancouver, British Columbia--(Newsfile Corp. – March 23, 2017) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ("Molori" or the “Company”) is pleased to announce that as part of its continuing re-development program, the Company has, in the past 60 days, successfully returned to production the State A and State C leases in Hutchinson County, Texas.
The total portfolio of available well inventory in these leases is 42 oil wells and 12 gas wells (total of 54 wells). Of the 54 wells in inventory, 20 have been returned to production adding an average of 70 barrels of oil equivalent per day (“BOEPD”)* of production (comprised of oil and high BTU gas).
In addition, our Texas-based operating partner Ponderosa Energy, has successfully rehabilitated roads, reconnected gas sales flow-lines, and restructured storage facilities on the State A and State C leases. A third party analysis was conducted, and proved commercial quantities of high-BTU gas (in excess of 1600 BTU) which has generated a substantial premium in sales price in relation to spot NYMEX.
Presently, the Molori and Ponderosa partnership is producing approximately 380 BOEPD from the State A and the State C leases, as well as continued work-overs from other leases in inventory. This demonstrates a 35 percent increase from our prior update (production as of January 1, 2017) of 280 BOEPD, and an 850 percent increase from our initial investment that was producing 40 BOEPD in June of 2016. A new reserve report will be commissioned by Molori within the next few weeks, to adequately reflect the increase in RTP (return to production) reserves.
The State A and State C leases form part of a former flowing river, which has not produced oil or gas since drying up several years ago. Based upon the flow rates of the recently re-worked wells on these two leases, the Company believes that the State leases alone offer the capacity to double current production.
Joel Dumaresq, CEO of Molori commented, “As evidenced by the recently-disclosed NI 51-101 reserve report (see press release dated March 13, 2017), the Molori and Ponderosa partnership has increased P1 reserves to approximately USD $27 million while at the same time successfully re-working over 70 wells and improving daily production to an average of approximately 380 BOEPD. We fully intend to invest further in building reserves and production, with the goal of reaching our stated near-term production goal of 1,000 BOEPD by this time next year.”
Molori holds a 25% working interest in certain leases owned by Borger, Texas based Ponderosa Energy, LLC.
* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is approximately 40% gas and 60% oil on all production.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle. Founded in 2011, the experienced management team is aggressively acquiring select properties which provide immediate cash flow and development opportunities, now and in the years ahead. Molori is seizing the opportunity, in the current oil & gas environment, to assemble oil and gas production in nearby and politically safe jurisdictions. Molori is pursuing a business plan, whereby the Company either purchases producing oil and gas assets at highly attractive rates, or in some cases simply takes on existing assets by way of purchasing or assuming default notes from small regional lenders and institutions.
CEO and Director
Molori Energy Inc.
(604) 336 3193
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Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.