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New Gulf Energy, LLC Announces Results From Horizontal Woodbine Oil Project

TULSA, Okla., July 22 /PRNewswire/ -- New Gulf Energy, LLC ("NGE") announced today the recent well results from its Horizontal Woodbine Oil project located in Madison, Brazos and Grimes Counties, Texas.

Petro Texas LLC, a subsidiary vehicle of NGE, and its joint venture partners, Petromax Operating, Inc. are currently completing well number eleven with an inventory of more than thirty-three additional long-lateral proved undeveloped horizontal locations in the play. The partners are using the latest in horizontal drilling and completion technology including, in some cases, laterals in excess of 8000 feet with up to thirty-eight frac stages. The last several wells completed by the partners have resulted in initial production in excess of one thousand barrels of oil per day (1000 BOPD) and three hundred thousand cubic feet of natural gas per day (300 MCFGD) while the Wilson Unit "A" #2H well came in with an initial production rate of one thousand two hundred barrels of oil per day (1200 BOPD) and seven hundred thousand cubic feet of natural gas per day (700 MCFGD). The group has steadily tweaked its completion methods, lateral lengths, frac stages and distance between stages to optimize production and reserves. Based on the analysis of third party engineers, the estimated unrecovered reserves ("EUR") for the wells utilizing the latest completion methods are in excess of 500,000 barrels of oil per well. The company has developed an extensive natural gas gathering system in the field and is utilizing gas lift to assist the older wells. NGE owns an average of 50% working interest in the field.

"The Woodbine formation in this area has produced for fifty years, we are simply bringing modern technology to the field to vastly improve the collection of the oil in place on a low risk basis and it is working wonderfully with wells paying back in three to four months," said Wink Kopczynski, Jr., partner in the firm and Vice President of Exploration and Production. "The formula we have developed is highly repeatable and we have identified additional fields where these drilling and completion methods may be deployed, so we are very excited to be in a position to continue this process for quite some time." The company is currently completing an average of one horizontal well per month and plans to continue at the same pace.

About New Gulf Energy, LLC

New Gulf Energy, LLC is based in Tulsa, Oklahoma and is owned and operated by partners, Don Kane, Jeff Guenther, Wink Kopczynski and Tracy Poole. NGE owns, manages and operates upstream and midstream energy projects in Texas, Louisiana, Kansas and Oklahoma.

SOURCE New Gulf Energy, LLC