MSEV news:
Major Texas Drill Program Has Commenced
HOUSTON--(BUSINESS WIRE)--April 16, 2002--Micron Enviro Systems Inc. (OTCBB:MSEV - news; the ``Company'') is pleased to announce that the operator has
informed the Company that the drilling process has commenced on its proposed 15 Well program on the Green Ranch prospect located in Stephens County, Texas.
The operator has informed the Company that the location has been built and the reserve pits have been completed. The operator estimates that once the drill is turning it
should take approximately 10-14 days to complete the drilling and about 7 days to test the well. There has been rain at the drill site and this is the reason for the delays to
this point.
The Green Ranch Prospect is a proposed 15 Well program consisting of 4,131 acres of leasehold on the Green Ranch in Stephens County, Texas. This leasehold is
located approximately 50 miles northeast of Abilene, Texas and approximately 10 miles northwest of Breckenridge, Texas, along the North Stephens-Shackelford
County line. The primary target formation in this prospect is the Bend Conglomerate at a depth of approximately 4,500 feet. Secondary target formations are Caddo,
Rotten Chert, Mississippian and Ellenberger.
The Green Ranch Prospect lies within an oil and gas producing province identified as Texas Railroad Commission District 7B, which encompasses 24 Counties I North
Central Texas. TRRC reports indicate District 7B has produced a total of 2.225 Billion barrels of Oil during the period from 1935 through June of 2001. These reports
also indicate the district has made 2.277 TCF of unassociated gas (gas wells) from 1970 through June of 2001. It is estimated that this district accumulated
approximately 2.78 TCF of casinghead gas. During the year 2000, District 7B made 14.1 Million barrels of oil, 18.6 BCF of casinghead gas and 45.3 BCF of
unassociated gas.
Through interpretation of the seismic data several ``bright spots'' have been identified within the Bend Conglomerate and other formations within the prospect and are
being targeted for testing. In 1997, a well drilled on one of the ``bright spots'' in the Conglomerate, blew out around the surface casing flowing at rates of 10-15 million
cubic feet per day.
The simple way to calculate gross revenue of a 100% working interest before royalties for a gas well is the following formula. For ease sake the calculation will use a
well flowing at 10 million cubic feet per day and a gas price of $3.00 flowing for a year:
10,000,000 cubic feet per day (flow) divided by 1000 (units gas is measured in) equals 10,000 then times this figure by $3.00 (gas price) and this equals $10,950,000.00
for a period of 365 days per well.
Management is continuing its due diligence on an additional multi-well prospect within Texas and a multi-well oil prospect in Peru and another project within Canada.
There has been over $1.5 million spent on the Green Ranch Prospect to date.
Bernie McDougall, President of the Company states, ``It is exciting to have this huge potential project getting under way. We feel the market is not giving much value to
this project when you consider our market cap of less than one million dollars and take into account the potential impact of this project on our company. When you look
at the flow rates of the well drilled in 1997 and project that to potentially 15 wells, this project could easily put us in the status of mid-range oil and gas producer, which is
our corporate goal. We are once again looking forward to exciting times ahead for MSEV and all our shareholders''
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this Release are forward-looking statements that are made
pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those
contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual
results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things,
volatility of oil and gas prices, product demand, market competition, and imprecision of reserve estimates. You should independently investigate and fully understand all
risks before making investment decisions.
Contact:
Micron Enviro Systems Inc.
Bernie McDougall, 604/719-3705
info@micronenviro.com
www.micronenviro.com
AI
