ARLINGTON, Texas, July 14, 2005 (PRIMEZONE) -- Quest Oil Corporation ("Quest" or the "Company") (OTCBB:QOIL) announces it has entered into an agreement to purchase the Hawkeye Field, located in Eastland County, Texas. Lease documents are being recorded in Eastland County, Texas.
The Hawkeye Field comprises 4 leases totaling 483 acres, with a total of 95 wells, 48 of these wells are capable of producing with remedial work. Additionally, there are 34 injection wells, 3 water supply wells and 10 temporarily abandoned wells. Production occurs from the shallow Adams Branch Limestone in the Canyon Group at a depth of approximately 1,100 ft.
Purchase price for the leases and the wells is $90,000 with an estimated capex of $240,000, which entails the work-over of the lease tank battery and the wells. Production rate is estimated at 175 BOPD. Average projected net revenue, after lease operating expense and taxes at $50/barrel, is approximately $15,000,000 over the life of the project with an estimated PV10 value of $6,000,000. This is based on a 75% average net revenue interest to Quest Oil. These figures are just for the shallow Adams Branch pay zone. The underlying formations could easily quadruple these figures.
Cameron King, Quest CEO, said, "The acquisition of the Hawkeye Field's producing assets marks a first step for Quest and its strategy to become a major player in the Barnett Shale along with XTO Energy, Chief, Carrizo Oil and Gas and EOG and Devon. Quest intends to maximize production by drilling horizontal wells in the Barnett with a lateral reach of 2000 to 3000 feet. Utilizing horizontal wells, each well is capable of a EUR of 1 to 2.5 BCF of gas.
"Our regional geological and geochemical studies indicate that the underlying Barnett Shale is the source for all the oil and gas in this area. The deeper objectives in the area, the Strawn, Bend, Marble Falls and Barnett Shale groups remain untouched. The Hawkeye acquisition provides Quest the opportunity to buy into existing proven assets and at the same time become a player in the Barnett Shale. The work-over program requires infill drilling to prove up our existing assets and testing the Barnett Shale play with a horizontal well." Quest Oil will be conducting 3D seismic survey designed for the Eastland County assets to validate our studies and place our wells in a location devoid of karsting in the underlying Ellenberger.
Quest Oil would like to invite shareholders to visit www.audiostocks.com for its most recent interview with Geologist Mr. Richard Johnson P. Eng. and company CEO Cameron King.
ABOUT QUEST OIL CORPORATION
The Company is committed to the exploration and development of economical oil and natural gas reserves globally. Quest management is focused on an acquisition program targeting high quality and low risk prospects. Initially Quest is focused on the development of North American oil and gas resources allowing highly leveraged production opportunities in Alberta and Texas, through its 100% owned subsidiaries Quest Canada Corp. and Wallstin Petroleum LLC.
ON BEHALF OF THE BOARD Quest Oil Corporation. "Cameron King" Cameron King MBA -- President and CEO/ Director
To find out more about Quest Oil Corporation (OTCBB:QOIL), visit our website at www.questoil.com.
Safe Harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Quest Oil Corporation has little or no control.