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Agreement Provides Engineering and Research Services for Infinity’s Recently Completed Acquisition of Current Production and 11,000 Leasehold Acres in Central Kansas Uplift Formation
Overland Park, KS, May 12, 2021 (GLOBE NEWSWIRE) -- (GLOBE NEWSWIRE) – Infinity Energy Resources, Inc. (Pink Sheets: IFNY) (“Infinity” or the “Company”). An independent oil, gas and helium exploration and development company announced today it has entered into an agreement (the “Agreement”) with the Tertiary Oil Recovery Program (“TORP”) at the University of Kansas to evaluate its prolific reserve potential relative to its recently acquired 11,000-acre oil & gas properties in the Otis/Albert Field located on the Kansas Central Uplift (the “Acquired Oil & Gas Properties”).
The TORP Program at the University of Kansas, under the directorship of Reza Barati (Associate Professor of Petroleum Engineering), was established by Professor Don Greene and Paul Willhite in 1974 and designed to provide technical assistance to Kansas oil & gas producers in applying enhanced tertiary recovery methods for Kansas oil and gas fields. Under the Agreement, TORP will be evaluating the potential reserves and the use of enhanced recovery methods on the Reagan Sand Zone located on the Acquired Oil & Gas Properties in the Otis & Albert Field at an approximate depth of 3,600 feet including secondary zones, and other potential hydrocarbon deposits, from a report finalized by Schlumberger in 2018. TORP will evaluate both current and new engineering methods of Estimated Ultimate Recovery (“EUR “) through modeling and experimental processes, identified by the Schlumberger report and various publicly available databases. TORP is recognized internationally for their state-of-the-art equipment, lab facilities, field equipment, outreach/tech-transfer, and technical support. Infinity’s purchase of the Acquired Oil & Gas Properties included more than 10 square miles of 3D seismic, compiled with multiple logs, drilling data, and reports. The existing datasets will provide valuable information for completion of the TORP evaluation. According to data maintained by the Kansas Geological Survey (“KGS”), the Otis/Albert Field to-date has produced primarily the Reagan Sand Zone with the following reservoir characteristics:
Cumulative oil production: 16 million barrels of oil
Cumulative natural gas production: 180 billion cubic feet
Average Reagan Sand Zone Depth: 3,600 feet
Average Reagan Sand Zone thickness: 0 to 90 feet
John Loeffelbein, Chief Operating Officer of Infinity, stated, “Infinity is extremely excited and honored to partner with such a well-known and highly respected program as TORP. TORP will provide us with very important reservoir evaluations and assistance in the implementation of enhanced secondary recovery methods as we move forward in developing our newly Acquired Oil & Gas Properties. This partnership will help us to accelerate the evaluation and development of the Otis/Albert field to its fullest potential. Infinity will be providing investors with further information and results as we begin our rework program and implementing enhanced secondary recovery on the existing oil & gas producing wells. The existing producing wells on the Acquired Oil & Gas Properties includes one horizontal producing oil well (at an approximate depth of 4,000 feet) in the Reagan Sand Zone, two conventional vertical oil-producing wells and the salt-water disposal system. We plan on beginning this rework in the month of May 2021,” concluded Loeffelbein.
Reza Barati, TORP Director, stated, “It is a great privilege for TORP to be able to work with the Infinity Energy Resources, Inc. on further development of the Otis/Albert field. This project makes us even more focused on our main mission of serving the independent oil and gas operators of Kansas and the region to improve their production from a long list of mature oil fields. TORP, with more than 5,000 ft2 of lab facilities and staff who are experienced working on reservoir characterization/simulation projects, is well equipped to support Infinity with their needs to evaluate potential reserves and the use of enhanced recovery methods.”
About Infinity Energy Resources, Inc.:
Infinity Energy Resources, Inc. has recently acquired current oil & gas production and the mineral rights to approximately 11,000 acres in the Otis/Albert Field located on the Kansas Central Uplift. Prior to the recent acquisition, Infinity had been involved in oil and gas exploration, development and production of natural gas and oil in Texas and the Rocky Mountain region of the United States as well as an oil field service company located in Eastern Kansas, Northern Oklahoma, Colorado and Wyoming prior to December 2012. Infinity was founded in 1987, is headquartered in Overland Park, Kansas and its common stock is listed on the Pink Sheets under the symbol "IFNY.PK". The Company's financial statements and additional information are available on the Internet at www.otcmarkets.com.
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements in this press release include the following: whether the Company will be successful in developing the oil & gas reserves of the Oil & Gas Properties; whether the TORP Agreement will provide the desired beneficial engineering and development data to increase production of oil & gas from the Oil & Gas Properties, whether the Company will be successful in workover/stimulation activities of existing producing oil & gas wells that result in increased production of the Properties; whether the Company will be able to execute its exploration and development plans for the Properties, including obtaining the required financing; whether the required financing for the exploration & development of the Properties can be obtained on terms favorable to the Company and its shareholders; the quantity of hydrocarbons beneath the Properties and whether they can be economically extracted; the accuracy of the consultants' preliminary analysis and estimate of the recoverable oil & gas reserves on the Properties and their underlying assumptions; whether or to what extent the relevant geological zone contains hydrocarbons; the inability to predict, in advance of drilling and testing, whether any particular prospect will yield oil in sufficient quantities to recover drilling and/or completion costs or to be economically viable; the fact that the process of estimating the quantity of oil in a prospect is complex, requiring the interpretation of available technical data and many assumptions; the potential for significant inaccuracies in such interpretations and assumptions that could materially affect the Company's estimates or those of its consultants; the necessity for estimates to be based upon available geological, geophysical and engineering data that can vary in quality and reliability; the inherent lack of precision in estimates involving the quantity of oil in the development project in Kansas as a result of the foregoing; whether the Company will be successful in exploring for the existence of mineral reserves other than oil & gas in commercial quantities including the development of the underlying reserves of such reserves and its ability to find a qualified partner, if necessary, with whom to pursue its exploration and development program on terms and conditions acceptable to the Company; the Company's ability to extract oil and gas from the Properties and the costs and technical and other challenges of extracting oil from the Properties; variations in the prices of oil and gas, unexpected negative geological variances, governmental uncertainties in Kansas; operating risks, delays and problems, the availability of services on acceptable terms, the results of drilling and completions; changes United States regulation respecting oil and gas; and actions by creditors with respect to debt or other financial obligations of the Company; and its ability to resolve its liquidity and capital requirements. Additional information respecting factors that could materially affect the Company and its operations are contained in its annual report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission.
For Additional Information, Please Contact:
Stanton E. Ross, CEO, at (620) 431-8840
John Loeffelbein, COO, at (913) 804-5870