PrimeGen Announces Oil Production Increase
01 September 2009 - 10:49PM
PR Newswire (US)
BRIDGEWATER, NJ, Sept. 1 /PRNewswire-FirstCall/ -- PrimeGen Energy
Corp. (OTC Pink Sheets: PGNE; "PrimeGen" or the "Company") released
new production figures as of August 31, 2009 resulting from the
recent completion production of three new wells in the
Timan-Pechora field. The Company achieved total average daily
production of 3,480 bpd during the month. The lowest production was
2,050 bpd on August 2, 2009 and the highest production was 3,660
bpd on August 27, 2009. Company President, Robert Charlton, said,
"We are pleased with the production results on Kochmesskoye # 1, 2
and 3. We expect that the Company will receive payback on these
wells within the current fiscal year given the prevailing world
price for oil. The Timan-Pechora fields are poised to provide
substantial revenue to the Company furthering our expectation that
the major portion of capital and operating expenses required to
continue effective exploration of the Timan-Pechora project will be
derived from our internal operations." As previously announced on
August 24, 2009 the Company has completed drilling of well
Kochmesskoye # 4 and expects to announce productive oil flow rates
later this week. As part of the accelerated drilling program, a
fifth well is scheduled for immediate drilling shortly after the
results of the fourth well are announced. The 2009-10 development
program calls for the drilling of a minimum of 30 wells to develop
the field. When fully developed, the 30 wells could yield a daily
production rate at Timan-Pechora of 35,000 barrels per day. Using
current pricing for Timan-Pechora crude oil, PrimeGen has now
projected that the 3 wells have generated over $10 million in
revenue or $82.5 million on an annual basis. Currently, oil at
Timan-Pechora has been priced at over $65.00 per barrel. About
PrimeGen Energy Corporation PrimeGen Energy Corp. is an oil and gas
exploration Company whose primary focus is exploring and developing
high potential unconventional resource plays. The Company's
strategy and development assets are focused on a prolific and
historic oil and natural gas resource play in Krasnoarmeiskome
District, Saratovskoi Oblast in Russia. The Company is
headquartered in Bridgewater, NJ and has offices in Moscow, Russia.
PrimeGen Energy plans to use its comparative advantages in certain
geographic regions to expand rapidly through strategic acquisitions
of small oil and gas producing entities and production assets
including wells, properties, operating equipment, and pipelines.
Forward-Looking Statements This news release contains
"forward-looking statements," as that term is defined in Section
27A of the Act 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. Actual results could differ from those
projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the inherent
uncertainties associated with the development of an early stage
company in the alternative energy industry, its products, and the
entry into new markets for such products. These forward-looking
statements are made as of the date of this news release, and the
Company assumes 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 the Company believes that the beliefs, plans,
expectations, and intentions contained in this press release are
reasonable, there can be no assurance those beliefs, plans,
expectations or intentions will prove to be accurate. Investors
should consider all of the information set forth herein and should
also refer to the risk factors disclosed in the Company's current
and periodic reports filed from time to time with the Securities
and Exchange Commission. DATASOURCE: PrimeGen Energy Corp. CONTACT:
Robert Charlton, President, PrimeGen Energy Corp.,
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