DALLAS, Texas, Oct. 30, 2013 (GLOBE NEWSWIRE) — via PRWEB – Petron Energy II, Inc. (“Petron II” or the “Company”) (PEII) Petron Energy II, Inc., signs Letter of Intent to purchase minority interest from Phoenix Energy, Inc. in Bakken Shale Deal.
Petron Energy II, Inc., together with its subsidiaries, engages in the acquisition and development of properties for the production of crude oil and natural gas, the transportation of natural gas through its pipeline subsidiary and well servicing through its servicing subsidiary. The Company’s operations are based in the United States.
Floyd Smith, President and CEO of Petron Energy II, Inc., states, “The Bakken play in North Dakota is one of the hottest oil plays in the energy space. We have monitored this particular minority interest owned by Phoenix Energy, Inc. for the past few months as a possible addition to the non-op section of our portfolio. We feel the timing is right to proceed in acquiring a 5% minority position in 6 wells in the Bakken Shale. Additionally, the company can increase its non-op position by purchasing additional interest from current Phoenix Energy, Inc. holdings in the Bakken play.”
Smith goes on to say, “Reserve estimates project each of the 6 wells to have oil reserves of 600,000 barrels recoverable from the Bakken and 800,000 barrels recoverable from the Red River and Interlake formations.” Smith further states, “The conservative reserve value of the 5% to Petron II is projected to be $10.5 million dollars. We have begun our due diligence and expect to complete the process by mid November.”
The company also successfully performed fracture stimulation treatments on the Covenant #5 and the Gerner #2 wells in the Dutcher sandstone on October 29, 2013. The company will report updated production news for both wells as soon as results are available.
About Petron Energy II, Inc.:
Petron Energy II, Inc. is a Dallas-based, oil and gas exploration and production company. For further information about the Company, please visit our website http://www.petronenergyii.com.
About Phoenix Energy, Inc.:
Phoenix Energy, Inc. is a private Natchez, Mississippi based, oil and gas exploration, production and land management company with an emphasis primarily in onshore United States.
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements” (statements which are not historical facts) made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words or phrases such as “anticipate,” “could,” “may,” “might,” “potential,” “predict,” “should,” “estimate,” “expect,” “project,” “believe,” “plan,” “envision,” “continue,” “intend,” “target,” “contemplate,” or “will” and similar words or phrases or comparable terminology. We have based such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward- looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, many of which are beyond our control. These factors include, but are not limited to, the time to consummate the proposed development, completion and extraction; the timing and extent of changes in market conditions and prices for natural gas and oil; the timing and extent of the Company’s success in discovering, developing, producing and estimating reserves; the economic viability of, and the Company’s success in drilling, the Company’s ability to fund the acquisition, development, completion and extraction of oil and gas assets and the Company’s planned capital investments; the Company’s future property acquisition or divestiture activities; increased competition; and any other factors listed in the reports the Company has filed and may file with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s expectations only as of the date they were made. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise.
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