HOUSTON, July 14, 2005 (PRIMEZONE) -- Aztec Oil & Gas, Inc. (OTCBB:AZGS) announced today that the drilling of the South Deep Lake well in Cameron Parish, Louisiana (state lease 18172), in which Aztec has a minority participation interest, has reached a depth of 11,050 feet, on its way to its target depth of approximately 19,000+ feet.
The drilling of this well is expected to cost approximately $14.5 million and another approximately $5 million for "completion". PetroQuest Energy, Inc., the program's operator, expects the drilling phase of this well to take another 30-60 days due to the projected high gas volumes, pressures and temperatures which are expected to be encountered during the drilling.
The drill site had to be evacuated this past weekend in preparation for Hurricane Dennis. The hurricane, which came onshore in the Panhandle of Florida on Sunday, bypassed Louisiana and did not damage the rig or any other structures on the drill site. Workers have since returned and the rig and the drilling of this well has recommenced.
"After a few down days as a precaution for Hurricane Dennis, everything seems to be proceeding well with the drilling on South Deep Lake. This is a very deep, high potential well, in a historically prolific gas producing field. Aztec is looking forward to the completion of this well and to the potential the well holds. The Company has entered into a number of new drilling projects in recent months and plans to announce others in the near future as part of our ongoing program to diversify our holdings into a balanced portfolio that will hold both short and long-term value for our shareholders," says Dr. Kenneth Lehrer, Chief Financial Officer of Aztec Oil & Gas, Inc.
In additional to the above referenced program, Aztec Oil and Gas acquired its 31.283% interest in Z2, LLC in 2004. Z2 LLC owns 100% of the working interest in the 7,200+ acre Big Foot oil field in Texas. In the Big Foot field, four new wells have recently been drilled to approximate target depths of 4,000 feet each. Big Foot Well 337 A was recently fraced in the Upper B Zone, and the remaining three new wells are expected to also be fraced in the Upper B Zone within the next several weeks. As previously reported, Aztec also recently acquired minority interests in two Deep Lake well prospects in Cameron Parish, Louisiana. Drilling, logging, and casing of both of those wells (Deep Lake Wells No. 2 & No. 1) have been completed to target depths of approximately 14,300 feet and 13,600 feet respectively. Both wells are now awaiting a completion rig. Aztec is also participating in a drilling program in the Barnett Shale play (located in Cooke, Wise and Montague Counties, Texas); and two drilling projects in Wharton County, Texas. The company will additionally soon be announcing participation in multiple well programs in two other states.
For more information on Aztec Oil & Gas, Inc., visit www.aztecoil-gas.com.
The statements contained in this news release that are not historical facts may be statements regarding the Company's future that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe the Company's hopes, plans, objectives, goals, intentions or expectations are all forward looking statements. Any such statements made herein about the Company's future are only made as of the date of this news release. Numerous factors, many of which are beyond the Company's control, may affect actual results. Also, the price Aztec Oil & Gas, Inc. and the other parties involved in the Z2 properties receive for the oil produced on their properties may be less than quoted NYMEX prices at any given time. The Company undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances.