News
Jun 03, 2013 (Close-Up Media via COMTEX) -- Bayport International Holdings,
Inc. announced the signing of a Contract to purchase an interest in 2 oil wells
to be drilled in the Milford Lease, Forest County, Pennsylvania.
According to a release, Drilling Permit numbers 38 and 39 have been issued as
per Pennsylvania Department of Environmental Protection (PA DEP).
The Company noted the interest is for 5.0 percent Working Interest and 3.75
percent Net Revenue Interest to be acquired in each of the two wells. This is
the net revenue that the company is seeking and will compound on. The aggressive
oil and gas program that has been instituted in 2013 is already starting to see
a new company vitalized and diversity brought to shareholders. Spud date and
production logs will be available shortly.
The location Forest County, Pennsylvania is east of the town of Titusville, Pa.
This area has always been prolific in the production of oil and natural gas. The
preliminary target zones for wells on this lease will be the 1st Sands, 2nd
Sands, 3rd Sands, and Red Valley Formations. These oils and gas bearing
formations are found throughout this immediate area and historically have been
good producers. All zones should be encountered at drilling depths of
approximately 1100-1300 ft., depending upon the elevation. Well records found in
the vicinity show the presence of these formations on and near the lease. This
lease is off-set on all sides by operating oil and gas wells, owned and operated
by various independent operators.
In addition, the Company noted:
Pennsylvania has been acknowledged as the birth-place of the oil and gas
industry since Edwin Drake drilled the first commercial oil well near Titusville
in 1859. Prior to the invention of the internal combustion engine the primary
usage for crude oil was as lamp oil and medicines. Soon after the finds in the
Forest County area early drillers moved out into the surrounding counties of
Butler, Bradford, Venango, and Warren of northwestern and central Pa. With the
early technology available these drillers searched and found oil in the
relatively shallow sandstone formations of the Venango Sands groups.
Some of these early wells blew out at over 10,000 bopd of oil per day. The drive
that forced this oil out at such high rates was the natural gas that was also
present. Before a market was found and pipelines were built much of this natural
gas was wasted, being vented or flared to atmosphere. The intense market demand
for crude oil created a boomtown history that rivaled anything in the gold
fields of California. Spin-off industries such as transportation, refining and
paraffin extraction created a job basis that lasts today. Up until the
mid-1930's this region of Pa. was the world's leading exporter of oil. The
majority of these early wells were drilled to a depth less that 3000 ft. Success
rate of wells drilled in this known region of Pa. has been approximately 95
percent.
It is the best appraisal that wells drilled on the Forest Co. Milford Lease have
an excellent chance of being economically productive. These leases give a
drilling program a nice balance of oil and natural gas production. Ideally we
will see 20 barrels of oil per day, initial production. Shallow wells go through
a decline curve after a short period of flush production and settle down to a
rate that may be maintained for many years. An old oil field axiom states that a
well will give up half its overall production within the first year of
production. With modern techniques of operating the overall production rates can
be greatly increased. It is quite common for wells in this region to continue to
operate economically for (20) years or more after drilling. Of course this
economical life span is a factor to the price of being received for the oil and
natural gas.
The acquisition of Interest is through Downhole Energy in Rockwall Texas.
Bayport CEO Jim Porter said, "We are excited about our direction and new
partnerships in the Oil & Gas industry. As we go forward we are adding to our
ever growing producing properties portfolio including such properties in Jones
County Texas, Nacogdoches Texas, and Pike Mississippi."
Bayport International Holdings, Inc. is a company formed to exploit the various
precious minerals in the U.S.
More Information:
www.BayportInternational.com
