FARMINGTON, N.M., Aug. 4, 2006 (PRIMEZONE) -- WW Energy Inc. (Pink Sheets:WWNG) announced today that its subsidiary WW Oil & Gas Inc. has signed a letter of intent to acquire oil and gas lease assets of Success Oil Company based in California.
The letter of intent, which is to close within a 45 day, due diligence period, identifies the Tubb Lease Oil and Gas Project, operated by Success Oil Company and located in the Crawar Field in Ward County, Texas, as the acquisition target. WW Oil & Gas has made an initial deposit to Success Oil Company and, as previously announced, has committed to commence work on a first well for re-completion within the 45 day due diligence period.
The Crawar Field has historically been a prolific producer of oil and gas. Nearby leases are owned by Chevron and Amoco among others. In particular, in October of 2000 Chevron re-completed a well 1,200 feet from the location of the first planned re-completion well by WW Oil & Gas. The Chevron re-completion well is still currently producing at approximately 28,000 mcf of gas per month. The same geological structure and pay zones as found in the Chevron re-completion well exist in several areas of the Tubb lease, including multiple wells for re-completion and grass roots wells. At $60 per barrel of oil and $7 per mcf of natural gas, estimated reserves of the Tubb Lease Oil and Gas Project exceed $59 million on a total mineral reserves cash basis.
WW Energy Inc., is a holding company that was created to acquire oil and gas service companies as well as oil and gas-related assets through two wholly-owned subsidiaries.
WW Oil & Gas Inc., established in 2005, is in the business of acquiring leases and oil and gas-related assets. Such acquisitions are for the purposes of development, exploration, and exploitation. The company currently has exploitation projects in Texas, Utah and New Mexico. Comprehensive drill programs are being developed for full exploitation of these projects.
WW Trucking Inc., formed in 1999, is a leading oil and gas services company for the oil field services industry in Utah, Colorado, New Mexico and Arizona (The Four Corners Area). Their existing business operations are in transporting fresh production water for oil drilling/exploration and waste water for disposal. They also provide services for heavy hauling of drilling and well equipment needed in the oil and gas production and exploration industry.
Success Oil Company, formed in 1990, is an innovative organization that acquires leases that have "proven undeveloped reserves" in the state of Texas. By using proven track records in various leases, they are able to acquire new leases and reserves while minimizing stakeholder's risks. The company has operated 121 wells in Texas and is also a drilling contractor on a turnkey basis.
Forward-looking statements
A number of statements contained in this press release are forward-looking statements that are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results of WW Energy Inc. may achieve could differ materially from any forward-looking statements due to such risks and uncertainties, including but not limited to, the fact that no assurance can be given that any proposed acquisitions will be consummated at all.