LONDON, December 9, 2014 /PRNewswire/ --
A small Houston-based oil and
gas exploration company is planning to drill a well on acreage
potentially holding 266 million barrels of oil in an underexplored
region in Utah.
Virtus Oil & Gas (OTCQB: VOIL) is poised to hit it big with
its Parowan Project-a 55,477-acre parcel in the heart of
Utah's oil-laden Overthrust
region. If successful, their 12,000-foot deep test well, which is
scheduled to begin in September 2015,
would mean monumental returns for investors.
The optimism is based on a major find from a decade ago. In
2004, the tiny Michigan-based Wolverine Oil Gas - which wasn't even
considered a junior player in the oil exploration business - made
one of the largest U.S. oil discoveries in 30 years.
Wolverine's discovery came from acreage it acquired from Chevron
Corp. (NYSE: CVX). Its success sparked an influx of oil and gas
companies into Utah. A decade
later, Utah's oil production has
increased 166%, reaching 96,000 barrels per day in 2013.
Other companies are trying to follow in Wolverine's footsteps.
For example, Utah-based
Richland oil & Gas (OTCQX:
ROIL) is pursuing three projects in the Overthrust region.
But it is Virtus Oil & Gas that has some of the most
exciting prospects. Virtus' Parowan property lies just 50 miles from
Wolverine's landmark find in the Covenant field, and only eight
miles from where Delta Petroleum (NASDAQ: DPTR) found favorable oil
indications a few years ago.
Based on extensive geologic surveys, Virtus conservatively
anticipates that this Parowan Project holds 266 million barrels of
oil, which would mean massive returns for its investors. The
company also received big news in November
2014 - an independent assessment confirmed the oil riches
that lie under the Parowan
surface.
Virtus announced that the assessment led to a 58.2% increase in
the best estimate of unrisked P50 recoverable resources-turning
this already attractive play a must-have investment. Even a
microscopic 10% of this would net the company $2 billion worth of oil.
Shares are low now, trading under $1.00, but the Virtus' stock is poised to climb
quickly as it moves forward on the Parowan project. If Virtus hits the next big
discovery in Utah when it begins
drilling, its value will skyrocket.
SOURCE Oilprice.com