MODR news look good, Blue Horse. If this well kicks in, MODR will not stay below .01 (IMO)
Modern Energy Corp. Announces Development of Natural Gas Property
Company's Loomis #1 Well Production Has Potential of 300,000 Cubic Feet of Natural Gas/Day and up to 50 Barrels of Oil/Day
LOS ANGELES, CA--(MARKET WIRE)--Jul 25, 2007 -- Modern Energy Corp. (Other OTC:MODR.PK - News) (Frankfurt:ME2.F - News) (Frankfurt:ME2F.F - News) announced that the company is ramping up its development of the company's 640 acres in a known natural gas production area in Oklahoma. The company's currently producing natural gas well will be dewatered in the near future in order to substantially increase current production.
Modern Energy Corp has a 65% interest in the oil and gas production from 640 acres of a productive area in Woodward County, Oklahoma near the Texas border. The property includes the Chester Zone, which is well known in the Oklahoma-Texas region for its proven gas reserves. There are two wells located about 10 miles away from the Modern Energy property that are each producing 42 million cubic feet per day along with 500 barrels of oil per day. Another well 15 miles away is yielding 1,000 barrels of oil per day.
The Modern Energy property has a long history of oil and gas exploration and production, with the first well drilled in 1978. The well, known as Loomis #1, produced a substantial quantity of natural gas, but given the low price for natural gas at the time, it was deemed uneconomical to proceed and the well was shut down. With oil now between $50 and $70 per barrel and natural gas fluctuating between $6 and $11 per thousand cubic feet, the economic viability of the well is now clear. Recent geologic and engineering studies indicate a potential 2.8 billion cubic feet of natural gas reserves in the area under Loomis well #1. The well has been in partial production of about 100,000 cubic feet of gas per month, yielding a very modest $600 revenue per month, from just the upper zones, not including the productive Chester Zone.
The company believes that the Loomis #1 well has the potential to produce more than 300,000 cubic feet of gas per day plus as much as 50 barrels of oil per day. At current prices of $6/thousand cubic feet and $60/barrel, this production would translate into revenues of over $1.5 million a year. Significantly, the company believes that at least six other productive wells could be drilled on the property. The company is currently negotiating with investors and potential corporate partners who have expressed interest in the other potential production sites.
To be added to the company's e-mail database for company and industry updates and company press releases, please send an e-mail to info@ModernEnergyCorp.com.
About Modern Energy Corporation: www.ModernEnergyCorp.com
Modern Energy Corp. (Other OTC:MODR.PK - News) (Frankfurt:ME2.F - News) (Frankfurt:ME2F.F - News), founded in 1996, is a development stage investment company with interests in oil and gas in Oklahoma, land in the Philippines, and marketable securities. The company is currently producing natural gas and plans to increase the development of natural gas wells in Oklahoma. The company also has biofuel feedstock cultivation potential (palm and jatropha oils) on company land holdings (largely under-developed plantations) totaling over 250,000 hectares (600,000 acres) in the Philippines. In addition, the company's Mindanao land has mineral rights where potentially valuable quantities of copper, gold, silver and other minerals are likely to be present. The company will further assess the property and determine which minerals are commercially viable as a prelude to obtaining a corporate partner for mining development.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
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 Modern Energy Corporation'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, development costs and risks, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
Contact:
Contact:
James Stewart
Chief Executive Officer
Modern Energy Corp.
800-255-9231
info@ModernEnergyCorp.com
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