"...confirmed the presence of oil..."
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PetroWorld Corp. Sign Agreement to Explore Nevada Oil Prospect
PetroWorld Corp. ('PWC') announces today that it has entered into a seismic
option agreement with Cortez Exploration LLC ('Cortez') to evaluate 44,604 acres
of Federal Leases located in western Nevada State, USA. The Lease area covers a
portion of the Cobble Cuesta anticline, one of the largest surface anticline
features in western Nevada and recent drilling activity on the flank of the
feature has confirmed the presence of hydrocarbons.
The seismic option grants PWC the exclusive right to acquire seismic over the
Cobble Cuesta anticline, a large surface feature that is visible on satellite
imagery. The structure is 12 miles long and 7 miles wide and recent drilling on
the east flank of the feature confirmed the presence of oil in the Tertiary
section. Additional geological work is required to confirm the key reservoirs
and the new seismic will be used to verify structural closure, which if present,
could contain substantial hydrocarbon reserves.
Under the agreement PWC will pay Cortez US$100,000 in back costs and spend
US$250,000 to acquire 2-D seismic data over the structure. After completing the
seismic survey, PWC has the option to commit to drill a well and pay additional
back costs in return for 50% equity in the Lease. It is expected that the
seismic acquisition will commence in June once State and Federal approvals have
been granted.
The other participant in the Lease area is Empire Petroleum Corporation which
holds a 10% working interest and whose Chairman, Al Whitehead, is PWC's
Non-Executive Chairman.
PWC's Chief Executive Frank Inouye commented, 'This opportunity sits in the high
risk high reward end of PetroWorld's asset portfolio and our approach to
evaluating the prospectivity of Gabbs Valley reflects this risk profile. The
seismic option minimizes the company's financial exposure however in the event
the new seismic confirms structural closure, PWC retains the right to drill and
take equity in the Lease. Although Nevada is considered by many as a frontier
oil and gas province, producing fields such as Trap Springs and Grant Canyon
prove that substantial reserves can still be found in areas such as Gabbs
Valley.'
End
For further information contact:
PetroWorld Corp.
Frank Inouye, Chief Executive Officer
Tel: 020 8823 9120
