Petrol Oil and Gas Begins Next Phase in Coal Creek Development
Tuesday April 18, 8:00 am ET
Second Escrow Closing Provides Petrol with Additional $5 Million
LAS VEGAS--(BUSINESS WIRE)--April 18, 2006--Petrol Oil and Gas, Inc. (OTC BB: POIG - News) announced today the recent closing of escrow on an additional $5 million to support its expanded drilling program on its Coal Creek Project. This is the second funding tranche in an agreement with Laurus Master Funds to provide debt financing of up to $50 million.
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"This second $5 million funding tranche allows us to continue the aggressive development program we initiated last November on our Coal Creek Project when we acquired the Laurus financing package and received our first $10 million tranche," said Paul Branagan, Petrol's Chairman and CEO. "The first $10 million provided funding for the first set of 44 production wells, 3 salt water disposal (SWD) wells and gas gathering infrastructures in our Burlington and Waverly areas. This additional $5 million will be used to further the Coal Creek development primarily with the drilling and completion of additional production wells."
The Coal Creek development plan is based upon drilling and completing some 540 wells over a two to three year period, along with miles of gas gathering pipelines and infrastructure to process, transport and sell gas in mid-west markets. To better manage the development of the 92,000 gross acres in this project and take advantage of the three interstate pipelines crossing Petrol's leases, Petrol divided the project into three fully self contained areas; Burlington, Waverly and Lebo.
Petrol holds a 100% working interest (WI) and an average 80% Net Revenue Interest (NRI) in the entire Coal Creek Project, covering coal bed methane (CBM) and other oil and gas reserves located in eastern Kansas and western Missouri.
