TYLER, Texas, Jan. 11, 2007 (PRIME NEWSWIRE) -- Biogenerics Limited (Pink Sheets:BIGN) is pleased to update shareholders on the company's progress which is as follows:
East Texas Joint Venture Transaction: The Board of Directors is happy to announce that the East Texas Oil Field Joint Venture Transaction is still proceeding. The delay is due to the fact that currently, the transaction has now escalated to involve 2,714 acres of leases, over 300 wells with production projected to be over 15,000 bbls/oil/month within the first six months of the expected conclusion. Part of this transaction will include future well sites for offset drilling production on the current leases involving the Lower Stringer and Main Woodbine/Ashe Stringer zones.
Steps have been taken to complete initial field due diligence and obtain commitments from key employees for continued services. Currently, the Joint Venture Participants are working diligently to conclude the clearing of titles on all leases including all necessary State of Texas operator requirements. Management is examining and observing active well operations to determine future production capacities. In conjunction with this, an existing active well, which was producing 3 bbls/oil/day, was re-completed at the lower pay zone and is now producing over 45 bbls/day, increasing production by over 1,200 bbls/oil/month. This test of increased production capacity verified the Joint Venture Participant's projections in its financial model. The Company expects that this transaction will reach a viable conclusion within the first quarter of this calendar year. Management continues to pursue this transaction as its number one priority.
Hydroslotter/Grimes: Biogenerics Limited continues to build on its business relationship with Hydroslotter Corp. There have been some challenges with well No. 2 (Ophelia). Hydroslotter confirms the issues are unrelated to the Hydroslotting technology. It is expected Ophelia will return to its normal flow rates once the issues are resolved. Andreotti No. 1 is still producing at its normal flow rates. Biogenerics looks forward to a continued working relationship with Hydroslotter as opportunities continue to present themselves.
Website: http:/www.bignltd.com
About Biogenerics Limited
Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics also has joint venture activities with Tyche Energy Inc. and Hydroslotter Corp.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause 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. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.