WINSTON-SALEM, N.C., Aug. 24, 2009 (GLOBE NEWSWIRE) -- Atlas Oil and Gas, Inc. (OTCBB:AOLG), which focuses on pursuing reclamation opportunities in the oil and gas sector, today announced that it has signed a Letter of Intent to acquire an approximate 2,300 acre oil and gas property in eastern Tennessee with existing oil and gas production. The company is well positioned to quickly capitalize on this opportunity by re-activating this property that previously had been discontinued due to reservoir pressure depletion and declining production.
"The company's immediate focus will be on re-developing the West Oneida Project in Scott County, Tennessee," said Thomas Cunningham, president of Atlas Oil and Gas. "The project lies in the middle of an existing field that contains 62 existing oil wells, 15 gas wells and 7 oil and gas wells.
"The idle wells have been shut-in due to pressure depletion via primary recovery. We firmly believe that a properly planned and cost-effective secondary recovery project will provide the required reservoir pressure restoration to rapidly recover significant existing reserves left behind after the successful primary recovery efforts. The initial efforts recovered only 13% of the original oil in place."
By strategically applying prudent secondary recovery techniques in select areas of the field, Atlas Oil and Gas believes it can recapture significant existing oil and natural gas reserves by applying various methods of repressurization.
Cunningham said additional promising reclamation projects on the East Coast, West Coast, and in Texas, have been identified, and the company plans to become actively involved in them going forward. "As we indicated earlier, these projects have the potential of hundreds of millions of barrels of oil equivalent," he said.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products; pricing and new technology; changes in consumer preferences and tastes; effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production; and other factors as those discussed in the company's reports filed with the Securities and Exchange Commission from time to time, available at www.sec.gov. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.