BSIC 2.37 - continued success - microcap Oil and gas
Basic Earth Announces All Wells On Its Antenna Federal Property in Colorado Now On ProductionLast update: 6/16/2008 2:58:00 PMDENVER, June 16, 2008 /PRNewswire-FirstCall via COMTEX/ -- Basic Earth Science Systems, Inc. (Basic or the Company) (BSIC) reported initial potentials on four more wells on its Antenna Federal property in Colorado's DJ Basin. In the southeast production facility, in addition to Basic's net revenue interest (NRI) and future J Sand production potential, the following table shows the initial production rate reported to the Colorado Oil & Gas Conservation Commission for these four new wells:
J Sand Well Name Bbls. Oil/Day MCF/Day NRI Potential USA 10-36 184 580 0.52500 No USA 23-36 99 364 0.16375 Yes USA 37-36 154 640 0.02000 No USA 39-36 22 438 0.02000 Yes
As previously disclosed, these wells are part of a sixteen well development drilling program in the heart of Colorado's Wattenberg gas field. Basic expects to have a 2% to 52.5% revenue interest in Codell/Niobrara production and a 13.125% to 52.5% revenue interest in J-Sand production (depending on actual well location). However, initially, all new wells will produce from the Codell/Niobrara formation alone. The Company expects to spend a total of $2.2 million for its share of the cost of drilling and completing these wells. Kerr-McGee Oil & Gas Onshore, LP will be the Operator of the project.
"We are excited to announce that, finally, all sixteen new wells and sixteen old wells are up and running," commented Ray Singleton, president of Basic. "As before, all of the reported initial production rates are, and have been, based on 24 hour production volumes up casing without tubing in the wells. Because of this configuration, daily production rates vary significantly and may, or may not, be indicative of future performance. Once pressures moderate, we expect to check each wellbore for obstructions and place the wells on production up tubing. Once this more conventional configuration is established we will have a better idea of where production should stabilize.
Repeating our previous statement, to this point, there have been no real surprises; there have been no dry holes, all geologic sections were present, no completion problems were encountered and, as anticipated, production rates are varied, yet still within the parameters of our initial expectations. So far, operationally, this has been a very successful venture."
Founded in 1969, Basic is an oil and gas exploration and production company with primary operations in select areas of the Williston basin, the Denver-Julesburg basin in Colorado, the southern portions of Texas, and along the on-shore portions of the Gulf Coast. Basic is traded on the "over-the-counter - bulletin board" under the symbol BSIC. Basic's web site is at where additional information about the Company can be accessed.
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "should," "may," "will," "anticipate," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Basic intends, expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Basic, particularly the Company's Quarterly Report on Form 10-QSB for the quarters ended June 30, September 30 and December 31, 2007 in addition to the Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. SOURCE Basic Earth Science Systems, Inc.
