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April 8, 2013 /PRNewswire/ -- Bayport International Holdings, Inc. (OTCPINK: EXTO). Today we are pleased to announce the signing of a Contract to purchase an interest in 2 oil wells to be drilled in the Milford Lease,
Forest County, Pennsylvania. Permit numbers 30 and 68 have been issued as per
Pennsylvania oil gas.
The interest is for 5.0% WI and 3.75% NRI to be acquired in each of the two wells, a total of 10.0% working interest and 7.5% net revenue interest. Revenue numbers can be seen from
$4,050.00 to $8,100.00 per month off of 20 bopd or 40 bopd, although some wells on this lease are doing more. This is the compounded net revenue that the company is seeking and will compound on. This aggressive oil and gas program that has been instituted in 2013 is already starting to see a new company vitalized and diversity brought to shareholders. More Production log reports will become available to our shareholders as soon as we get them. In some cases this can take up to 45 days.
Forest County, Pennsylvania is east of the town of
Titusville, Pa. This area has always been prolific in the production of oil and natural gas. The preliminary target zones for wells on this lease will be the 1
st Sands, 2
nd Sands, 3
rd Sands, and Red Valley Formations. These oils and gas bearing formations are found throughout this immediate area and historically have been good producers. All zones should be encountered at drilling depths of approximately 1100-1300 ft., depending upon the elevation. Well records found in the vicinity show the presence of these formations on and near the lease. This lease is off-set on all sides by operating oil and gas wells, owned and operated by various independent operators.
Pennsylvania has been acknowledged as the birth-place of the oil and gas industry since
Edwin Drake drilled the first commercial oil well near
Titusville in 1859. Prior to the invention of the internal combustion engine the primary usage for crude oil was as lamp oil and medicines. Soon after the finds in the
Forest County area early drillers moved out into the surrounding counties of
Bradford, Vanango, and Warren of northwestern and central Pa. With the early technology available these drillers searched and found oil in the relatively shallow sandstone formations of the Venango Sands groups.
Some of these early wells blew out at over 10,000 bopd of oil per day. The drive that forced this oil out at such high rates was the natural gas that was also present. Before a market was found and pipelines were built much of this natural gas was wasted, being vented or flared to atmosphere. The intense market demand for crude oil created a boomtown history that rivaled anything in the gold fields of
California. Spin-off industries such as transportation, refining and paraffin extraction created a job basis that lasts today. Up until the mid-1930's this region of Pa. was the world's leading exporter of oil. The majority of these early wells were drilled to a depth less that 3000 ft. Success rate of wells drilled in this known region of Pa. has been approximately 95%.
It is the best appraisal that wells drilled on the Forest Co. Milford Lease have an excellent chance of being economically productive. These leases give a drilling program a nice balance of oil and natural gas production. Ideally a 20 bopd oil per day, initial production. Shallow wells go through a decline curve after a short period of flush production and settle down to a rate that may be maintained for many years. An old oil field axiom states that a well will give up half its overall production within the first year of production. With modern techniques of operating the overall production rates can be greatly increased. It is quite common for wells in this region to continue to operate economically for (20) years or more after drilling. Of course this economical life span is a factor to the price of being received for the oil and natural gas.