Hard to tell, here are parts of the PRs. Seems to be 2 different but similar leases.
TYLER, Texas, Feb. 27, 2007 (PRIME NEWSWIRE) -- Biogenerics Limited (Pink Sheets:BIGN) Board of Directors is pleased to report that its due diligence has been completed on the Central Louisiana Oil Field reported in its January 22nd Press Release.
The Company's independent's engineer report has verified reserves on the lease of 1,080,970 bbls/oil gross reserves, and this transaction was based on an initial reserve analysis of 880,000 bbls/oil gross reserves. This results in over 200,000 bbls/oil gross reserves more than expected and the purchase price is not changed with this finding.
In addition, the Company's management was present at the recent re-opening of the initial 10 wells of the 27 total wells that have been retrofitted with the new Grundfos down-hole submersible pumps. The expectation of these pumps was to increase production on a low maintenance cost basis. The results were these 10 wells increased in production by 25%, and now the expected monthly production from the entire lease is projected to be over 4,900 bbls/oil/month. The Company now projects that this transaction will result in net operating revenues annually of over $2,000,000 before the transactional costs of this opportunity.
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Jan. 22, 2007 (PRIME NEWSWIRE) -- Biogenerics Limited's (Pink Sheets:BIGN) Board of Directors announced today that the Company has entered into a Letter of Intent to purchase an operating oil field in central Louisiana. This transaction is separate from the Joint Venture Transaction -- East Texas Oil Field.
The central Louisiana oil field is comprised of approximately 65 acres, more or less, and it currently has 27 operating oil wells and two salt water injection wells with, one other salt water injection well to be drilled per the agreement. The oil field has been completed with the most recent technology involving down-hole submersible pumps. All pumps are brand-new Grundfos submersibles, connected with "smart drives" which allow the field to be managed using the latest in proven computer technology. These wells operate at fluid flow rates of 500 bbls/fluid/day each resulting in oil production historically at the rate of over 4,000 bbls/oil/month. Management anticipates the wells will settle into a production rate of 4,500 or more bbls/oil/month within the first few months of operations. This production of oil is graded at a gravity of 22, which is highly sought after by refiners for the production of asphalt. Currently, the oil is sold under contract to a major purchaser of oil in the area and is reaping a premium over the PLATTS published rate of $2.75 per bbl. The leases pertaining to this asset involve a 25% landholders' lease royalty, therefore, the 100% working interest in these leases results in a 75% ownership of all production.
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Jan 11
If successful, the Company will receive, as its part of the Joint Venture transaction an operational facility located in Central, Louisiana, that involves 30 working and active wells that will produce over 3500 bbls/oil/month which will be free and clear of all debt. This field has a Geologist Report showing its current value being in excess of $13 million. This project will produce an annual net income in excess of $1,800,000. In addition, the Company will receive a cash position of $4 million for further investment in the oil and gas industry via "Farm-outs" and direct working interest investments.
In summary, if concluded this joint venture transaction will place over $17 million of economic asset value into BIGN with no debt and a joint venture association with the operating company of the East Texas Oil Field for future business associations.
AI
