AI
Wednesday, March 09, 2011 3:24:34 PM
Todays NEWS from ZLUS prompted me to do some DD.
If you don't like reading, then I will cut to the chase and tell you this DD warranted my starter in ZLUS.
CoreStream Energy, Inc. Acquires 18 Producing Oil Wells and Four Project Fields Totaling 2,700 Acres
http://www.einnews.com/pr-news/343990-corestream-energy-inc-acquires-18-producing-oil-wells-and-four-project-fields-totaling-2-700-acres-
CoreStream Energy, Inc. (PINKSHEETS: ZLUS) announced that it has acquired 18 producing oil wells located primarily in Kentucky. A basic contract has been signed and an 8K is being filed. The leases are expected to be completed within the next 90 days. An additional 8K will be filed upon the close of the transactions. The leases are located in Adair, Clinton, and Cumberland Counties in Kentucky with 150 acres located in Pickett County, Tennessee.
The leases encompass approximately 2,736 acres of land with the legal rights to drill as many as 700 wells. The wells are currently producing high-grade oil. All of these producing wells except one are expected to be re-worked over the coming months to maximize their production capabilities. The depth of these wells range from 600 to 1900 feet; depths which keeps the cost of rework and on-going maintenance low.
The Company at this time expects to own 50% of the working interest of 5 of the wells and 80 to 87.5% of the working interest of the remaining 13 wells. CoreStream will have operational control of all the leases and wells. For various reasons these wells have not experienced continuous use in recent years so their production history is difficult to summarize or offer as a solid guide to forecast future production. CoreStream will update its shareholders and investors of the standard monthly production once it has taken full control over operations and the information is available. Based on its evaluations to date, the Company feels comfortable forecasting an average daily output of 100 or more bbls of oil within 12 months of its operations.
Milton 'Todd" Ault III, CoreStream's CEO, remarked, "We are very pleased to obtain these leases. They offer the Company immediate revenue, the opportunity to revitalize a number of successful wells and improve overall production and create a wide range of opportunities to expand the operations in a proven area. Our efforts have shown us that Kentucky offers some great opportunities and allows us to concentrate our major activity and operational efforts in the near term to this primary area. Thus, at this time, we have decided not to further evaluate the two non-Kentucky based multi-well opportunities addressed in the last press release. We will continue to negotiate on additional leases in Kentucky. I'm very excited about the potential that this domestic area offers its shareholders."
As soon as CoreStream receives the information, it will provide an update on the progress and production of the State Lease #2 well in the Catahoula Lake area in LaSalle Parish, LA, which was successfully drilled in January. Although the Company does not have operational control of this project, CoreStream expects to evaluate all additional opportunities on those 1600 acres.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Fountain Valley, CA is an independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas from onshore conventional properties in Texas, Louisiana, Oklahoma, Mississippi and the Midwest. It currently trades on the OTC Markets as ZLUS.PK with a symbol change expected soon from FINRA.
These might be helpful for those that want to research the areas of the leases.
http://kgs.uky.edu/kgsweb/datasearching/oilgas/ogsearch.asp
http://www.uky.edu/KGS/emsweb/ogmap/ogmaps.html
http://www.uky.edu/KGS/pubs/mcs09.pdf (older map but gives a nice perspective of the potential)
http://www.uky.edu/KGS/emsweb/oginfo/production.html (2001)
Map of Counties:
As Moxy stated earlier, I don't know of another company trading under a penny and actually producing oil.
Another company made news today picking up oil leases in Kentucky and they are trading at .16.
http://www.oilandgasonline.com/article.mvc/Xun-Energy-Acquires-3-Oil-And-Gas-Leases-0001
The chart looks great!
ZLUS - Daily Candlesticks
OIL prices are pushing steadily higher!
Brent oil price bounces above $116 on Libya violence
http://www.google.com/hostednews/afp/article/ALeqM5iP2J-hYz36NfQHIFjn0Ho95Bprcw?docId=CNG.2e731c43441cb963374752d290ede3ea.a21
LONDON — London Brent oil prices briefly topped $116 per barrel on Wednesday as global supply concerns deepened amid worsening violence in Libya, traders said.
Brent North Sea crude for delivery in April rallied to $116.18, before later pulling back to $115.55, up $2.49 from Tuesday's closing level.
But New York prices slid after news of a larger-than-expected jump in American crude oil inventories. The main contract, light sweet crude for April, known as West Texas Intermediate (WTI), eased 12 cents to $104.90.
"Brent crude oil surged above $116 per barrel, led by renewed concerns about tensions in Libya that forced a shutdown of one of the biggest oil refineries of the country," said Sucden analyst Myrto Sokou.
"However, WTI missed the trend and consolidated around $105 per barrel level, after a bearish EIA weekly report showed large build in the US crude oil stocks, limiting gains for the US oil contract."
The battle for the rebel-held western Libyan town of Zawiyah was undecided Wednesday, escapees reported, while state television said residents were staging a mass demonstration in support of Libyan leader Moamer Kadhafi.
In recent days, oil has spiked to 2.5-year highs amid escalating violence and supply shortfalls in Libya, which is a major producer and exporter of crude.
"Crude oil prices climbed higher ... after renewed tensions in Libya that forced the shutdown one of the biggest oil refineries (Zawiyah refinery) in the country," added Sokou.
Zawiyah, a prosperous dormitory town 40 kilometres (25 miles) west of Tripoli, has been under assault for several days by Kadhafi's forces using artillery and tanks.
Saudi Oil Minister Ali Naimi has downplayed market fears about global shortages from the crisis, saying Tuesday that his kingdom has extra output capacity of 3.5 million oil barrels per day.
"The rally of crude oil prices is not being driven by an actual tightening of supply but rather the fear that the unrest will spread to other oil producing countries," added Commerzbank analyst Carsten Fritsch.
"Should another country on the scale of Libya also exit the market, Saudi Arabia's spare capacities would be likely to fall to a critical level of less than two million barrels a day."
Elsewhere, the US government's Energy Information Administration announced that American crude inventories climbed by a larger-than-expected 2.5 million barrels in the week ending March 4.
But the EIA also revealed that US gasoline or petrol stockpiles sank by 5.5 million barrels.
In addition, distillates -- which include diesel and heating fuel -- dipped by 4.0 million barrels.
I expect ZLUS to be at much higher levels once these leases are completed.
If you don't like reading, then I will cut to the chase and tell you this DD warranted my starter in ZLUS.
CoreStream Energy, Inc. Acquires 18 Producing Oil Wells and Four Project Fields Totaling 2,700 Acres
http://www.einnews.com/pr-news/343990-corestream-energy-inc-acquires-18-producing-oil-wells-and-four-project-fields-totaling-2-700-acres-
CoreStream Energy, Inc. (PINKSHEETS: ZLUS) announced that it has acquired 18 producing oil wells located primarily in Kentucky. A basic contract has been signed and an 8K is being filed. The leases are expected to be completed within the next 90 days. An additional 8K will be filed upon the close of the transactions. The leases are located in Adair, Clinton, and Cumberland Counties in Kentucky with 150 acres located in Pickett County, Tennessee.
The leases encompass approximately 2,736 acres of land with the legal rights to drill as many as 700 wells. The wells are currently producing high-grade oil. All of these producing wells except one are expected to be re-worked over the coming months to maximize their production capabilities. The depth of these wells range from 600 to 1900 feet; depths which keeps the cost of rework and on-going maintenance low.
The Company at this time expects to own 50% of the working interest of 5 of the wells and 80 to 87.5% of the working interest of the remaining 13 wells. CoreStream will have operational control of all the leases and wells. For various reasons these wells have not experienced continuous use in recent years so their production history is difficult to summarize or offer as a solid guide to forecast future production. CoreStream will update its shareholders and investors of the standard monthly production once it has taken full control over operations and the information is available. Based on its evaluations to date, the Company feels comfortable forecasting an average daily output of 100 or more bbls of oil within 12 months of its operations.
Milton 'Todd" Ault III, CoreStream's CEO, remarked, "We are very pleased to obtain these leases. They offer the Company immediate revenue, the opportunity to revitalize a number of successful wells and improve overall production and create a wide range of opportunities to expand the operations in a proven area. Our efforts have shown us that Kentucky offers some great opportunities and allows us to concentrate our major activity and operational efforts in the near term to this primary area. Thus, at this time, we have decided not to further evaluate the two non-Kentucky based multi-well opportunities addressed in the last press release. We will continue to negotiate on additional leases in Kentucky. I'm very excited about the potential that this domestic area offers its shareholders."
As soon as CoreStream receives the information, it will provide an update on the progress and production of the State Lease #2 well in the Catahoula Lake area in LaSalle Parish, LA, which was successfully drilled in January. Although the Company does not have operational control of this project, CoreStream expects to evaluate all additional opportunities on those 1600 acres.
About CoreStream Energy, Inc.
CoreStream Energy, Inc., a Nevada Corporation based in Fountain Valley, CA is an independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas from onshore conventional properties in Texas, Louisiana, Oklahoma, Mississippi and the Midwest. It currently trades on the OTC Markets as ZLUS.PK with a symbol change expected soon from FINRA.
These might be helpful for those that want to research the areas of the leases.
http://kgs.uky.edu/kgsweb/datasearching/oilgas/ogsearch.asp
http://www.uky.edu/KGS/emsweb/ogmap/ogmaps.html
http://www.uky.edu/KGS/pubs/mcs09.pdf (older map but gives a nice perspective of the potential)
http://www.uky.edu/KGS/emsweb/oginfo/production.html (2001)
Map of Counties:
As Moxy stated earlier, I don't know of another company trading under a penny and actually producing oil.
Another company made news today picking up oil leases in Kentucky and they are trading at .16.
http://www.oilandgasonline.com/article.mvc/Xun-Energy-Acquires-3-Oil-And-Gas-Leases-0001
The chart looks great!
ZLUS - Daily Candlesticks
OIL prices are pushing steadily higher!
Brent oil price bounces above $116 on Libya violence
http://www.google.com/hostednews/afp/article/ALeqM5iP2J-hYz36NfQHIFjn0Ho95Bprcw?docId=CNG.2e731c43441cb963374752d290ede3ea.a21
LONDON — London Brent oil prices briefly topped $116 per barrel on Wednesday as global supply concerns deepened amid worsening violence in Libya, traders said.
Brent North Sea crude for delivery in April rallied to $116.18, before later pulling back to $115.55, up $2.49 from Tuesday's closing level.
But New York prices slid after news of a larger-than-expected jump in American crude oil inventories. The main contract, light sweet crude for April, known as West Texas Intermediate (WTI), eased 12 cents to $104.90.
"Brent crude oil surged above $116 per barrel, led by renewed concerns about tensions in Libya that forced a shutdown of one of the biggest oil refineries of the country," said Sucden analyst Myrto Sokou.
"However, WTI missed the trend and consolidated around $105 per barrel level, after a bearish EIA weekly report showed large build in the US crude oil stocks, limiting gains for the US oil contract."
The battle for the rebel-held western Libyan town of Zawiyah was undecided Wednesday, escapees reported, while state television said residents were staging a mass demonstration in support of Libyan leader Moamer Kadhafi.
In recent days, oil has spiked to 2.5-year highs amid escalating violence and supply shortfalls in Libya, which is a major producer and exporter of crude.
"Crude oil prices climbed higher ... after renewed tensions in Libya that forced the shutdown one of the biggest oil refineries (Zawiyah refinery) in the country," added Sokou.
Zawiyah, a prosperous dormitory town 40 kilometres (25 miles) west of Tripoli, has been under assault for several days by Kadhafi's forces using artillery and tanks.
Saudi Oil Minister Ali Naimi has downplayed market fears about global shortages from the crisis, saying Tuesday that his kingdom has extra output capacity of 3.5 million oil barrels per day.
"The rally of crude oil prices is not being driven by an actual tightening of supply but rather the fear that the unrest will spread to other oil producing countries," added Commerzbank analyst Carsten Fritsch.
"Should another country on the scale of Libya also exit the market, Saudi Arabia's spare capacities would be likely to fall to a critical level of less than two million barrels a day."
Elsewhere, the US government's Energy Information Administration announced that American crude inventories climbed by a larger-than-expected 2.5 million barrels in the week ending March 4.
But the EIA also revealed that US gasoline or petrol stockpiles sank by 5.5 million barrels.
In addition, distillates -- which include diesel and heating fuel -- dipped by 4.0 million barrels.
I expect ZLUS to be at much higher levels once these leases are completed.
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