Corporate Update - North American Oil and Gas Corporation (the "Company" or "NAMG") is pleased to pr
Corporate Update - North American Oil and Gas Corporation (the "Company" or "NAMG") is pleased to provide the following Corporate Update
VENTURA, Calif.--(BUSINESS WIRE)-- North American Oil and Gas Corporation:
North American Oil and Gas Corporation (the "Company" or "NAMG") has completed the strategic review of its greater Tejon Area encompassing 3,429 gross acres (2,946 net acres). The Company has incorporated results from its first well (Pass Exploration 77-20) and the newly acquired 37m2 of 3D seismic following an extensive internal review including the assistance of leading industry consultants in the San Joaquin Basin.
The strategic review has upgraded the prospectivity of the Company's Tejon acreage. The new portfolio comprises of 14 low risk to moderate risk high impact appraisal / exploration prospects targeting light oil with P50/P101 resource potential of 24/81mmboe gross, all located in the prolific southern San Joaquin Basin California. This is a significant upgrade to our previous estimates of 4 prospects targeting P50/P10 resource potential of 20/65mmboe gross.
|Potential||Target||Depth||Unrisked potential (mmboe)|
Bob Rosenthal, President & CEO commented, "the new interpretation of the 3D seismic data and review of over 600 wells in the Tejon area upgraded the prospectivity of our acreage. Importantly we have identified multiple opportunities both shallow and deep, which reduce the risk profile and demonstrate the potential that exists within our acreage. The company plans to pursue its portfolio of 14 prospects targeting upside of 81mmboe gross in the coming months."
Project Summary - Tejon Area
The Tejon Area project is located about 20 miles south of Bakersfield, California, in the southernmost part of the San Joaquin Valley.
NAMG's Tejon Ranch Extension (346 net acres) and Tejon Ranch Main Footwall (2,600 net acres) land positions lie between the North Tejon Field which produced 60 million barrels of oil equivalent (mmboe) and the Tejon Field which produced 40 mmboe. Importantly NAMG is exploring for hydrocarbons in a proven hydrocarbon province and targeting the same productive sands (Veddar and JV) that are currently producing in the North Tejon and Tejon fields. Furthermore, approximately 640 gross acres are in the designated field boundaries of North Tejon and Tejon Fields which provide an easier permitting process.
The area is an active hydrocarbon province demonstrated by the presence of the Tejon and Tejon North fields. Furthermore, numerous oil companies are present, actively pursuing in field development utilizing vertical and horizontal wells. Coupled with an extensive infrastructure network and end user markets located nearby, (e.g. Los Angeles refinery market 60 miles south and the Kern Oil Refinery 30 miles north), which augurs well for converting a discovery into near term revenue.
Tejon Ranch Extension - NAMG operator; 75% working interest; and gross 546 and Net 246 acres
NAMG has identified 6 prospects targeting multiple reservoirs, namely the Vedder Oil Pool, Santa Margarita Sands, Olcese Pool, Eocene Sands, Reserve Sands, Monterey Sands, and Steven Sands. The reservoirs range in depths from 1,000 feet to 9,000 feet and the prospects are targeting gross unrisked potential P50/P10 of 1.4/7.3 mmboe. The prospects have been seismically defined and/or have well control data that show hydrocarbons are present. The wells are vertically drilled and typically cost between $0.5mm to $2mm subject to depth. NAMG expects initial production rates to vary and estimated ultimate recovery (EUR's) is expected in the range of 50,000 BOE to over 200,000 BOE. Subject to success the company intends to drill horizontal wells to increase production rates and EUR's which it believes would offset the higher well costs associated with horizontal drilling.
Tejon Ranch Main Footwall2- NAMG 21.25% working interest; and gross 2,874 and net 2,600 acres
NAMAG has identified 8 prospects targeting multiple reservoirs, namely the Vedder, Olcese, Eocene, and JV Sands. The reservoirs range in depths from 10,000 feet to 13,000 feet and the prospects are targeting gross unrisked potential P50/P10 of 22.8/73.8mmboe.
A well is planned mid-2014, total depth of the well is 13,000 feet and the primary objectives are the Veddar and Eocene sands at 10,000 - 13000 feet measured depth. It is a deep prospect targeting light oil (32-35º API) and an estimated 15 - 50mmboe gross potential based on NAMG estimates and has geological similarities to the large 175 - 250 mmboe Occidental Petroleum discovery made in 2009, which is also a San Joaquin Basin footwall trap3.
1 Society of Petroleum Engineers definition: Range of uncertainty is represented by a probability distribution estimate. P50, there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate. P10, there should be at least a 10% probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
2 Solimar is Operator of the Tejon Ranch Footwall Main Area, except for depths above 7,428 feet, wherein Lani (NAMG) assumes all rights and duties of Operator.
3 Occidental Petroleum Corporation news release dated July 22, 2009.
About North American Oil & Gas Corporation (OTCBB - NAMG)
North American Oil & Gas Corporation ("NAMG") is a publicly listed (OTCBB - NAMG) oil and gas Company. The Company is focused on the prolific San Joaquin Basin, onshore California, with existing foundation assets targeting exploration and exploitation of high impact oil and gas projects located near infrastructure and existing discoveries.
As of June 30, 2013, NAMG owned interests in approximately 8,243 gross acres (4,944 net acres) in the southern San Joaquin Basin: 1) White Wolf 4,823 gross (2,098 net) acres; 2) Tejon Main 2,874 gross (2,600 net) acres; and 3) Tejon Extension 546 gross (346 net) acres.
This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to the Company's plans, outlook, business strategy and exploration and development of the Company's properties. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: the ability to raise sufficient capital to fund exploration and development; the quantity of and future net revenues from the Company's reserves; oil and natural gas production levels; commodity prices, foreign currency exchange rates and interest rates; capital expenditure programs and other expenditures; supply and demand for oil and natural gas; schedules and timing of certain projects and the Company's strategy for growth; competitive conditions; the Company's future operating and financial results; and treatment under governmental and other regulatory regimes and tax, environmental and other laws.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
North American Oil and Gas Corporation
Robert (Bob) Rosenthal, +1 805-643-0385
Chairman, President and CEO
fax: +1 805-643-0211
KEYWORDS: United States North America California
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