SAN ANTONIO, April 22, 2004 (PRIMEZONE) -- Titan Consolidated Inc. (Pink Sheets:TTCS) announced today that it will develop an oil and gas area in Wilson County, Texas. This reservoir area has a long history of oil exploration and production. Although it is difficult to determine exact reserves in the Wilson County Field, an estimate can be based on its size - approximately three miles long by 3/4 miles wide - as well as historical data, engineering reports and seismic information. On this basis, a minimum of 2,000,000 barrels of recoverable oil can be assumed. At today's prices this could represent as much as $60,000,000 of gross oil revenue. A Term Sheet has been signed and Titan has also negotiated Prospect and Operating Agreements, reflecting 100% ownership in the project after initial payouts.
Income will be realized from natural gas production in the initial stages of drilling. The Wilson County Field is expected to produce a significant amount of natural gas. Based on historical and seismic information collected by Petroleum Engineer Peter Maupin, gas sales are estimated to be a minimum of $12,000,000.
Existing infrastructure and development will allow for significant cost reductions. The property has an existing gas line to the field, which will save time and expense in bringing our gas to market. Further cost savings will be realized as the 20 existing abandoned vertical well bores will be used to launch horizontal laterals. This will further drop costs from an estimated $600,000 to $150,000 per well. Therefore, once the field is fully developed, a substantial gross return can be expected, assuming the world's strong demand for energy keeps prices at a consistently high level.
Initially, Titan will raise $370,000 by way of a private placement. Use of proceeds will include drilling costs, conversion of an existing well into a water injection well, a water disposal system, gas gathering, etc. A suitable operator will work the completed wells and any costs over-runs for such operations will be the responsibility of the operator, specific to the Prospect and Operating Agreements.
Both Titan Consolidated and Engineer Peter Maupin look forward to the development of future Oil and Gas projects in the same area of Texas and will endeavor to locate additional properties with similar attributes and available historical data.
Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by Titan Consolidated Inc.) contains statements that are forward looking, such as statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. These forward looking statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated.
Please contact Public Relations at: theo.pessini@shaw.ca.