AER Energy Resources, Inc. Announces $1.875 Billion USD Agreement for Joint Venture Oil and Gas Project
October 07 2011 - 4:01PM
Marketwired
AER Energy Resources, Inc. (PINKSHEETS: AERN) has successfully
signed an agreement with Eric Johnson and Riverton Energy for the
formation of a Joint Venture to purchase oil and gas leases in
South-Central Louisiana with the intent to drill to 12,500 feet to
test the Nodasaria Frio Sand (9,400 feet), the Cockfield Sand
(10,700 feet) and the Sparta Sand (12,300 feet), all of which are
major producers of oil and natural gas in surrounding fields at
Fordoche, Livonia and Opelousas.
Stan Wilson, AER President and General Counsel, stated, "Having
previously worked with Riverton Energy on capital formation for the
development of two Eagle Ford Shale mineral leases, the Mathews and
the Murphy Leases in Zavala County, Texas, I am pleased that AER
Energy Resources, Inc. has been afforded this opportunity to joint
venture with Riverton Energy on the "Bayou B Prospect" in the
Atchafalaya Basin area with an expected lease acquisition to take
place in early November and drilling to begin no later than
February 2012."
"Funding for the purchase and drilling expenditure has been
dedicated and new production upon completion is expected to recover
a minimum of 320,000 barrels of oil and 3.2 billion cubic feet of
natural gas from the Nodasaria Frio alone, resulting in a potential
return of $38,000,000 based on risk-adjusted prices of $80 per
barrel and $4 per 1000 cubic feet of natural gas. With another five
development wells to be drilled, the AER JV expects to generate
between $825 million to $1.875 billion in gross revenue based on
Riverton's internal projections," Mr. Wilson added.
"Seismic data on the prospect demonstrates three stacked sands,
and we intend to penetrate all three with the first well," says
Riverton's Eric Johnson.
As a part of the proposed Joint Venture, Mr. Johnson and
Riverton Energy will manage the project, and have a local operator
ready to commence drilling operations.
ABOUT AER ENERGY RESOURCES, INC.
AER Energy Resources, Inc. (www.aernenergy.com) is a diversified
holding company with an emphasis on oil and gas exploration,
drilling, well completion and fuel distribution.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
The words or phrases "would be," "would allow," "intends to," "will
likely result," "are expected to," "will continue," "anticipate,"
"expect," "estimate," "project," "indicate," "could,"
"potentially," "should," "believe," "considers," or similar
expressions are intended to identify "forward-looking statements."
Actual results could differ materially from those projected in the
forward-looking statements as a result of a number of risks and
uncertainties. These include the company's historic lack of
profitability, end user customer acceptance and actual demand,
which may differ significantly from expectations, the need for the
company to manage its growth, the need to raise funds for
operations and other risks within the regulation of the industry.
Statements made herein are as of the date of this press release and
should not be relied upon as of any subsequent date. The Company's
past performance is not necessarily indicative of its future
performance. The Company does not undertake, and the Company
specifically disclaims any obligation, to update any
forward-looking statements to reflect occurrences, developments,
events or circumstances after the date of such statement.
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