Armada Oil Announces Gulf Coast Production Enhancement Program
DALLAS--(BUSINESS WIRE)-- Armada Oil, Inc. (OTCBB: AOIL) (the "Company"), an oil and gas exploration and production company, today announced that it is has begun a program to significantly enhance current production in its fields located in Plaquemines and Lafourche Parishes, Louisiana. The Company estimates that this program, which began May 1st, will enhance the current 650+ BOE daily net production in these fields by up to 20%.
Planned work includes multiple reworks of active wellbores, production enhancements and completions into new zones. The program is designed to provide the Company with increased cash flow at a low cost of capital and will be funded with internal cash flow. An extensive geological and engineering evaluation of our Lake Hermitage Field has identified the opportunities outlined above and we have refined a number of potential drilling and/or sidetrack opportunities, at least seven of which are proved undeveloped ("PUD") locations with multiple stacked pay zones.
"Our recent evaluation of our Louisiana fields has motivated us to aggressively approach this production enhancement program. We believe an increase in production from the program will reaffirm and support our plans for expansion and new drilling in the area," said Randy M. Griffin, CEO of Armada Oil, Inc.
About Armada Oil, Inc.
Armada Oil, Inc. (OTCBB: AOIL), headquartered in Dallas, Texas, is a growth-oriented oil and gas Exploration and Production (E&P) company with a focus on growing reserves and net asset value per share, primarily through the acquisition, development and enhancement of multiple onshore oil and natural gas producing properties as well as the development of highly diversified developmental drilling opportunities, both conventional and unconventional. The company currently owns producing oil properties in Plaquemines and Lafourche Parishes in Louisiana, developmental properties in Garfield and Major Counties, OK and Wyoming County, NY and strategic acreage positions in and around the Laramie and Hanna Basins in Southern Wyoming in the liquids-rich Niobrara Play.
More information about Armada Oil may be found at http://www.armadaoil.us.
Certain statements in this news release, which are not historical facts, are forward-looking statements. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those currently anticipated due to a number of factors which may be beyond the reasonable control of the Company, including, but not limited to, the Company's ability to locate and acquire suitable interests in oil and gas properties on terms acceptable to the Company, the availability and pricing of additional capital to finance operations and leasehold acquisitions, the ability of the Company to build and maintain a successful operations infrastructure, the Company's ability to integrate acquired assets, the intensity of competition and changes and volatility in energy prices. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in the filings of the Company with the U.S. Securities and Exchange Commission at www.sec.gov.
Armada Oil Inc.
KEYWORDS: United States North America Louisiana Texas
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