WILLOW PARK, Texas and ISRAEL, Jan. 23, 2004 (PRIMEZONE) -- Ness Energy International, Inc. (OTCBB:NESS) announced new discussions and efforts with larger independent oil and gas companies seeking some sort of joint venture which may lead to a vast expansion of Texas exploration and development. The company believes that one key to success in Israel, the primary focus of Ness, is active cash flow from Texas oil and gas operations.
Joint Venture Plan
Ness Energy holds a large contiguous acreage position in Parker County Texas encompassing nearly 7,000 acres for the development of oil and gas. Exploration and development is needed to take captive the resources lying beneath the surface in the Barnett Shale. The Barnett Shale is a highly prolific gas formation that is quickly becoming one of the largest gas fields in the Nation. In an effort to tap these resources in a timely manner, Ness Energy is currently entertaining various offers of cooperation from these larger independent companies. Ness always intends to operate and pursue most projects on its own but President Stephens has recognized that joint efforts with others, under certain conditions and circumstances, should complement Ness and help support the true value that Ness Energy holds, not only in reserves but in generated cash flow from gas sales.
According to President Stephens, "Ness Energy is currently negotiating with several larger independent oil and gas companies that have expressed an interest in helping Ness develop its leasehold position in Parker County, Texas. We may be poised to conduct joint venture or similar operations with these companies, thereby accelerating our pursuit of generating cash flow needed for major Israeli work projects to begin in February and the further advancement of acquisitions currently under way."
Parker County Background
Parker County has been a hot area of activity for several months, with new drilling rigs moving into the county and new companies jockeying for position to obtain what few leases are left to be had.
President Stephens stated, "To this point, most of the larger operators have been quietly acquiring leases to drill on. Beginning about 6 months ago after protecting their interests, they began to drill. To my knowledge there has not been a dry hole (non-commercial well) drilled since they started. It is no surprise that my phone rings daily with companies wanting to buy acreage that Ness holds."
The properties owned by Ness are located in the west central portion of Parker County Texas. All together, Ness holds nearly 7,000 contiguous acres which have the ability to produce natural gas, not only from the Barnett Shale, but a multitude of additional shallower horizons as well. The Barnett Shale is a zone that for years was drilled through but was never produced because it has a very tight matrix. With the advancement of technology and millions of dollars spent by others, there is now a way to unlock the secrets of its production potential. Each forty (40) acre unit that these Barnett Shale wells are drilled on, on an average, have been estimated to contain up to a billion cubic feet of natural gas. Ness Energy has over 150 units in which to drill with potential for recovery.
He further stated, "The acreage that Dad and I put together over the years came together for a reason that we really didn't understand until this activity began to move into the area. For several years, we were the only ones doing anything in Parker County and now every one wants to do something there. Over the years we put this property together for shallow gas prospects and new horizons that we would encounter. In my opinion, the shallow gas has been where the true value was; that opinion has changed. Now we must place additional value on the Barnett Shale compounding the gas reserves in place. Fortunately for us there have been other companies drilling in the area proving the Barnett Shale production is for real. Some wells have initial potential of near two million (2,000,000) cubic feet per day. Barnett Shale production on our acreage is a bonus that may add millions of dollars in value to the company."
Ness Plans
President Stephens stated, "Ness is talking with companies with the wherewithal to help launch a very aggressive drilling program. New production information is being released daily by other companies that prove gas volumes and reserves are there for the taking. With our production increasing on a regular basis, due to successful reworks, Ness believes that joint venture and similar efforts will substantially increase reserves, cash flow and most importantly shareholder value."
Other News
On an international level, two overseas oil and gas projects have been presented to Ness from its Wall Street advisors with the possibility of acquisition being undertaken. News to be released as it develops.
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.