WILLOW PARK, Texas and NETANYA, Israel, Jan. 8, 2004 (PRIMEZONE) -- Ness Energy International, Inc. (OTCBB:NESS)
ACQUISITION FINAL
Ness Energy International, Inc. is pleased to announce, after lengthy negotiations begun by Hayseed Stephens, founder of Ness Energy International, Inc., that the acquisition of LaHava oil/gas LTD. is final. LaHava oil/gas LTD. is an Israeli limited partnership that was formed several years ago to conduct the business of oil and gas operations in the nation of Israel. LaHava owns 4 wellbores in the Gurim Field, located between the cities of Arad and Sedom at the southwest end of the Dead Sea. These wells were acquired by LaHava in the early 90's with a plan to implement horizontal drilling through the existing wellbores. This reconfiguration would allow the heavy oil in the Gurim structure to be produced. After a budget was put together at nearly $1,000,000.00 per well, the project was aborted and the wells haven't been touched since.
HISTORY/PLAN OF ATTACK
Sha Stephens, President of Ness Energy International, Inc. says, "It doesn't bother me at all that these wells have been shut in for some time. This type of project is what I enjoy the most, and have been most successful at in the past, in taking something discarded or overlooked and giving it new life. We shouldn't encounter too many problems other than a few valves being rusted shut and possibly some flange bolts grown together that won't break out. We believe the downhole integrity of the wellbores remain intact. Therefore, we shouldn't have any trouble performing any of the preliminary tests on these wells, the first being the Gurim No. 4."
The Gurim No. 4 well came on line making 105 barrels a day of 17.3 gravity crude. The well produced a total of 9,124 barrels of oil during a fourteen month period. When the oil to water ratio reached 50/50, the well was shut in in order to formulate a plan that would allow the well to produce with minimal water. This plan was never carried out.
Sha Stephens remarked, "Today, with the technological advancements that have presented themselves at our disposal, I feel that we will go into this well and bring it back to commercial production at minimal expense, relatively speaking. Also, to keep costs down, we will be using the workover rig purchased by Ness last year to perform the work. In addition to these cost savings, we now have another wellbore in which to inject the produced water, which was not available when the well was previously produced. These little things on the surface will bring the economics of oil production back in line in a hurry."
After the initial Gurim test and evaluation, Ness has an additional three zones in the well to be tested. The four wells combined have calculated total oil reserves, in place in the Gurim Reservoir, at its current perforated interval, of 4,000,000 barrels. With today's advancements, Ness feels that of the 4,000,000 barrels, approximately 2,000,000 could be produced. After this Gurim test in late February or early March, Ness will have a better direction on how to proceed, not only with this well, but also the remaining well bores in the field.
BABY STEPS
"It is very exciting to me that sometime in the month of March or early April, Ness Energy International, Inc. could be producing oil from a well bore and lease that is owned by Ness in the country of Israel. This is just a baby step to the deep well that will be drilled by us when all things are in order and the time is right," Mr. Stephens commented.
More than LaHava just having leases or well bores, this acquisition gives Ness Energy a position in the Israeli Oil & Gas community. This will allow Ness the opportunity to get acquainted with the rules, regulations and working knowledge of the country's oil and gas industry. Current management in LaHava will stay in place for no less than a six month period to make sure that the transition and training of new personnel goes smoothly.
OTHER NEWS
Ness Energy has received its first round of financing from Wall Street. "Ness is very excited at the 'breaking of the ice' where the finances of the company are concerned. We have worked diligently to provide and prove all things necessary for funding. We are still negotiating some other avenues and scenarios, in this I believe Ness, in short order, will elevate to the next level of oil company." Sha Stephens says. More information regarding specifics will follow shortly.
Reworking of wellbores continue in Texas with new gas being added every week. Volume has increased significantly along with cash flow. Details to follow in the Presidents annual update to be released soon.
Acquisition of additional Parker County wells and acreage is still on track. Look for the closing in the near future.
About Ness-The Vision
The current business of the Company is focused upon development and execution of oil and gas exploration plans with a focus both on pursuits in the petroleum rich State of Texas, and also in the Middle East, specifically Israel. Ness believes that Israel in particular the southwest end of The Dead Sea, is a place where "Science and The Bible shake hands" and that Ness will achieve the vision of the location and recovery of an abundant source of oil and gas in Israel to supply Israel and the Christian communities with supernatural wealth.
Certain Information
Certain statements in this news release may contain forward-looking information and are based on Management's current expectations, estimates and projections subject to change. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements. Unless legally required, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company disclaims any information that is created or distributed by any outside party and endorses only information that is communicated by its official Press Releases.