DENVER, Oct. 16, 2006 (PRIMEZONE) -- Mammoth Energy Group Inc. (Other OTC:MMTH) announced today that its wholly owned subsidiary, ProTerra Oil & Gas Exploration, Inc., has secured leases with 15 well locations in Kansas that it intends to re-complete using a polymer gel treatment. Three treatments are being scheduled before year-end with the remainder being done in the first quarter of 2007.
"In the last ten years, there has been such an advance in completion and re-working technologies," said Christopher Miller, Mammoth's CEO. "Halliburton was one of the companies that has pioneered the use of a polymer gel that is used to seal off some of the water in wells with excessive water. The Arbuckle formation is ideal for these polymer treatments and there have been hundreds of wells that have been re-worked. We are fortunate enough to work with a team in Kansas that knows where to find ideal well candidates."
An average polymer treatment scenario involves taking a well that is producing between 2 to 5 barrels of oil per day (BOPD) and 100-plus barrels of water per day. After the well is treated and brought back on-line, initial production typically ranges anywhere from 30 to 100 BOPD before settling down at around 15 to 20 BOPD six months later.
"The data we have gathered on these treatments shows that the well typically pays off within a matter of weeks to months," added Miller. "Again, on a well-by-well basis, this production is not spectacular. Across 15 to 25 wells, however, production revenues really start to add up. This is why we like these re-entrys because they are low risk and form part of our strategy of steady production accumulation."
ProTerra is currently working to secure a target of about 30,000 acres in Kansas where it intends to re-enter wells and drill exploration wells.
About ProTerra Oil & Gas Exploration, Inc.
ProTerra is concentrating on three low risk strategies that round out steady accumulation of production and growth of monthly cash flow. First, it is developing low risk wells that are in or near existing oil fields where recoverable oil is in smaller amounts but is not as risky or expensive to drill. Secondly, it is working to acquire existing production that is undervalued and where infill drilling can increase reserves dramatically. Lastly, it is currently working on leasing acreage in "hot areas" that are in the path of current industry trends where major activity is occurring.
More information is available at the company's website at www.mammothenergygroup.com
Cautionary Note: Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.