LAS VEGAS, NV -- (Marketwire) -- 07/26/10 -- MASS Petroleum (OTCBB: MASP) (FRANKFURT: 0MP) is an oil and gas production company backed by an experienced and dedicated management team. MASS Petroleum is engaged in the acquisition of producing oil and gas projects to build its reserves and ensure sustainable growth through focused project development and acquisitions. MASS Petroleum is pleased to announce it has signed a LOI with JKA Ventures to acquire various oil and gas leases located in Kansas, USA.
The leases available to MASS Petroleum include high working interest oil operations with current production at approximately 12 bbl/d from several leases located in Crawford County Kansas. In addition, there are other prospective leases in the area MASS Petroleum will have access to as well for further development and drilling purposes.
The bulk of the production of the oil leases derives from the Bartlesville and Cattleman formations of Pennsylvanian age which fit into MASS Petroleum's target area as mentioned earlier. The preliminary terms of the LOI assign a cost of the acquisition at $ 800,000 USD subject to MASS Petroleum completing its due diligence on the target leases in order to determine their economic value in today's market.
MASS Petroleum has been continuing its efforts to determine key areas of interest through evaluating oil and gas assets with development and drilling upside potential. MASS Petroleum has determined the Kansas areas provide low-risk, multi-well oil and gas investments via direct participation programs through a direct ownership position in the wells or joint venture opportunities. Key facts about Kansas oil production include:
- The first oil well in Kansas was drilled in 1860.
- Currently Kansas produces oil and gas in 89 of the 105 counties.
- Over 4000 permits to drill have been issued in Kansas to date.
- The average well depth is about 3,500 feet.
- Over 59,000 wells are actively producing oil and natural gas in Kansas.
- 70% of the wells produce oil and the other 30% produce natural gas.
- There are over 2100 oil and gas producers operating in Kansas.
MASS Petroleum is excited to increase its cash flow through this acquisition and plans to use the funds to acquire additional production assets with similar parameters.
About MASS Petroleum
MASS Petroleum is an oil and gas production company backed by an experienced and dedicated management team. MASS Petroleum is engaged in the acquisition of producing oil and natural gas wells, interests and leases from existing companies, governments, and through the open market.
The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to commencement of drilling operations, concentration in mineral deposits, delays in testing and evaluation of ore samples, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.