DENVER, Oct. 3, 2006 (PRIMEZONE) -- Mammoth Energy Group Inc. (Pink Sheets:MMTH) announced today that its wholly owned subsidiary, KMV Consulting, is completing three more wells in its shallow gas project in Rogers County, Oklahoma. When these three wells are brought on-line, the total well count for the project will be 15 producing wells.
The three new wells were treated with a sand frac in September and are being brought on-line in the next couple of weeks. One of the wells had oil shows when it was washed and the log for the well shows there may be a small amount of commercially viable oil. Management anticipates that these three wells should be on-line by mid-October and should bring the project's total natural gas production to an average of just under 750 thousand cubic feet per day (MCFD). Using a twelve month average of natural gas prices, this production would be the equivalent of about $4,500 in revenues per day before deducting line charges, royalties and operating expenses.
KMV Consulting has a 75% net revenue interest in these 15 gas wells on over 1,000 net acres in Northeastern Oklahoma. This project has tremendous upside since it is located on a shallow, blanket gas field where nearly every well drilled produces.
"These completions continue to prove our belief that this project is low risk and that we will be able to consistently add production nearly every time we drill a well," said Christopher Miller, Mammoth's Chief Executive Officer. "We are also really excited that we have a well with the potential to produce some oil. Although, it really is not that surprising that we found oil, since a lot of oil companies in the area bump into pockets of oil as they explore for natural gas. We really feel that this is the perfect project for a small independent to pursue to establish production."
About KMV Consulting, Inc.
KMV is focused on developing shallow gas projects in Northeastern Oklahoma due to the low risk, blanket characteristics in the area that make it possible to drill and produce a well nearly every time. It is currently focused on developing its Rogers County, OK project into a property with between 8,000 and 12,000 total net acres leased where it can embark on a drilling program aimed at getting 200 to 300 wells on-line. With drilling and completion costs under $100,000 per well, this project is positioned to grow consistently each month as new wells are brought on-line.
More information is available at the company's website at www.mammothenergygroup.com.
Cautionary note This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.