IRVINE, Calif., Oct. 16, 2012 (GLOBE NEWSWIRE) -- New Western Energy Corp. (OTCBB:NWTR), an independent energy company engaged in the acquisition, exploration, development and production of oil, gas and minerals primarily in North America, today announced that its wholly-owned subsidiary, Royal Texan Energy Co. has commenced a comprehensive work-over program on Well #1 on its Sam Cannon Well Unit located on the 680-acre Moran Lease in Shackelford County, Texas.
The Sam Cannon Well Unit is comprised of two (2) wells, namely #1 and #4, and has produced 146,607 barrels of oil and 4,851,295 MCF of natural gas from August 1966 to February 1997. Historically, the Sam Cannon Well Unit has been a major oil producer with daily initial production (IP) of 196 BOPD. Well #1 has produced approximately 79,820 barrels of oil to date. According to an independent Geologist Report conducted in August 2012 (the "Geologist Report"), the recoverable reserve from Sam Cannon Well Unit is expected to be around 36,943 bbls of oil and 1,189,755 MCF of natural gas.
The work-over program for Well #1 is initially focused on the development of the Mississippian production zone at a depth of 3,902 ft. It has been observed that there is a packer with a joint of tubing that has been split in half at a depth of approximately 2,500 ft. "We plan to use a molding tool to mold the split tubing into a shape that the fishing tool can attach on to and pull the packer and tubing out of the hole. This will open up the well bore and will allow us to run tubing, rods, down hole pump, and start producing from this well."
There are currently eight (8) lease units (including Sam Cannon Well Unit) under the Moran Lease, which the Company acquired in January, 2012 as part of its acquisition of Royal Texan Energy Co. According to the Geologist Report, the Moran Lease has combined recoverable reserves of 183,837 bbls of oil and 3,791,294 MCF of natural gas.
"The initial goal of this work-over program is to focus drilling in the proven Mississippian production zone in order to enhance the recovery factor of this oil field," said Javan Khazali, President of New Western Energy Corp. "As we continue to move forward with the redevelopment program, we anticipate productivity equivalent to that of past development, and a 15%-30% increase in recovery efficiency."
About New Western Energy Corp.
New Western Energy Corp. is an independent energy company engaged in the acquisition, exploration development and production of oil, gas and minerals primarily in North America. To learn more about the Company, visit: http://www.newwesternenergy.com.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated production. Actual results could differ from those projected in any forward-looking statements due to numerous factors including, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K and our other filings with the SEC at www.sec.gov or from us at New Western Energy Corp., 20 Truman, Suite 204 Irvine, CA 92620.
CONTACT: Javan Khazali (949) 435-0977 firstname.lastname@example.org