NTRO DD update News expected by August 12 on Quinlan phase 2 and 3
taken from pr 11:46a ET June 23, 2011 (Market Wire)
The company has commenced restoring production on the Quinlan properties, which is part of the oil and gas acquisition. Nitro Petroleum Inc. has successfully completed phase one of the Quinlan project, by replacing the down hole equipment in the Quinlan #2 well from conventional pump to submersible lift. The well is now producing approximately 24 BOPD. The company will now commence phase two and three. Phase two is to enhance the saltwater system to dispose 5000 to 6000 BOWP/D. This will require a larger saltwater pump and tubing. We will start phase three as soon as the saltwater disposal system is completed. Phase three is to convert the Quinlan #3 well form conventional pumping to submersible lift. The company is estimating this well to produce 20 to 30 BOP/D.
The company is currently discussing with our industry partners to participate in this project, this will provide for the additional working capital needed to complete this project. We believe that this project will be completed within the next 30-45 days. The company is estimating the project will produce 50 BOPD with a gross revenue stream in excess of $125,000 per month at $90.00 per BBL. Summarized below is the evaluation of the transaction.
Settlement Value
Quinlan and Crown Property Value = $1,517,459
Debt Valued at $416,563.55
Total Valued $1,934,022.55
Restricted Treasury Stock = 63,627,090
Shares Valued at @ 3.04 cents per share
AI
