BEDFORD, TX--(Marketwired - Feb 19, 2014) - PetroTech Oil and Gas Inc. (OTC Pink: PTOG) (the "Company" or Petrotech") is pleased to announce today that they have set up a subsidiary company in Colorado, and Washington, to serve as the foundation for the company's entry into the emerging market for medical and recently legalized recreational marijuana in the United States.
Through Legalizedpot.us, (LP.US Management Group Inc.) has been established to be the Management Company. This branch will specialize in managing the growers of legalized Marijuana and Hemp in the states where they are allowed to grow.
"This management group is the first of its kind, we have three growers in Colorado and Two in Washington, that will be our first clients," said Steven Machat, the head of this new division.
Regarding our current Business:
Eddie Schilb President of PTOG added, "Our progress in Nowata is moving fast, we have finished the cement casing, and will shoot the well today, February 19th, after which we will follow up with an updated press release and full report," he went on to say, "We are not abandoning our main focus of working the leases that we have and continuing to execute our plans on oil production."
Please go to www.legalizepot.us to review the credentials of Steven Machat and Jae Benjamine.
PLEASE GO TO OUR WEBSITE www.petrotechog.com to view our updated progress in Nowata.
About The Brown Lease:
The key to success in this area of Oklahoma is optimizing production from the many hydrocarbon-bearing zones, which includes the coal seams. With most wells encountering about a dozen zones that have known production in this area, the drilling risk is extremely low. Production rates in this area range from 2 to 50 barrels of oil per day (BOPD) per well with typical results averaging between 5 and 10 BOPD. Initial flow rates can be higher for a short duration before settling into this range with the quality of crude being excellent (33° to 42° API oil). Natural gas is the fallback position in this area due to shallow Excello shale that blankets the area as do several methane gas bearing coal seams. As such, natural gas is almost always produced in a well in this area with production rates ranging from 5,000 to 200,000 cubic feet of gas per day (5 to 200 MCFD).
Since most of this gas is produced from coal seams, initial production rates are actually lower and increase over the first few months because coal seams must "dewater," where water in place in the coal seam is brought to the surface freeing up the gas to begin coming to surface through the well bore. As a result, a typical scenario would be for a well to produce from a coal seam and after dewatering for about a month to start giving up its natural gas. The flow rate of between 950 to 1050 BTU gas will usually start around 5 MCFD and increases as the water comes off with most wells settling in around 30-50 MCFD. In PetroTech's project area, there is an estimated 98% completion rate and 100% discovery of gas, making it one of the lowest risk exploration areas in the country.
Located in Nowata County, Oklahoma, this project is situated on the Northeastern edge of the Northeast Oklahoma Shelf, which has proven to be prolific in coal bed methane gas since it was developed beginning in the early 1990's. PetroTech's properties are surrounded by leases operated by some of the major players in the field such as Newfield Exploration, Mid-Continent, Inc., Energy Quest Resources and Endeavor Energy. PetroTech has minority interests in Newfield Exploration and Endeavor Energy.
About the Company:
PetroTech Oil and Gas, Inc. uses multiple patent technologies for Enhanced Oil Recovery (EOR), and, in some cases, will use their new pumping system co-developed by PetroTech. Throughout the United States, there are primary depleted oil reservoirs representing billions of barrels of oil that lend themselves to the use and exploitation of Enhanced Oil Recovery and PetroTech Oil and Gas, Inc.'s proven patented technology. Without EOR technology, these reservoirs will yield only about 20% of their original oil reserve. Gas injection EOR is a proven method that has been in use over the last 50 years in the oil fields of West Texas, Kansas, Oklahoma, Michigan, Wyoming and Oklahoma. Starting in the late 1990's, PetroTech began researching various EOR methods to find an alternative gas to pure CO2 for EOR. In doing so, the Company discovered that a N2-CO2 mixture was 2-3 times more efficient than CO2 in the recovery of stranded oil. PetroTech was introduced to a patented exhaust unit that was more efficient than regular CO2, with a prototype of that equipment being built for injection purposes and being further developed for commercial use.
PetroTech has analyzed the different types of oil producing reservoirs in most of the major geological basins in the United States, and has determined that the use of our extraction methods will enhance the recovery of stranded oil reserves in these areas that otherwise may never be produced. The pinnacle reefs, other reefs in Texas make excellent reservoirs for EOR because they are compact, have consistent reservoir properties, thick pay columns, and are overlain by an impermeable cap seal. However, other formations have responded favorably as well. These reservoirs represent over 300 million barrels of recoverable stranded oil. PetroTech's patented method and technology has the potential to have a major impact on the recovery of stranded oil in U.S. basins. This statement is based, in part, on the fact that there is an unlimited source of gas, an inexpensive infrastructure to transport the gas, and data that supports that a mixture of CO2 and N2 is more efficient than CO2, in some trials.
The cost and recovery of a project will be dependent on size of structure and depth, and will range depending on the type of formation and treatment design. Company forecasts project it will yield an additional 20% to 40% of oil in place, in a period of 5 years. Each successful project is estimated to have a six to twelve month payout.
For more information please go to our website, which can be found at: http://petrotechog.com
IMPORTANT DISCLOSURE: PTOG and LP.US are planning execution of their stated business objectives in accordance with current understanding of State and Local Laws and Federal Enforcement Policies and Priorities as it relates to Marijuana (as outlined in the Justice Department's Cole Memo dated August 29, 2013), and plan to proceed cautiously with respect to legal and compliance issues. Potential investors and shareholders are cautioned that PTOG and LP.US will obtain advice of counsel prior to actualizing any portion of their business plan (including but not limited to license applications for the cultivation, distribution or sale of marijuana products, engaging in said activities or acquiring existing Cannabis production/sales operations). Advice of counsel with regard to specific activities of PTOG and LP.US, Federal, State or Local legal action or changes in Federal Government Policy and/or State and Local Laws may adversely affect business operations and shareholder value.
Safe Harbor Statement:
CERTAIN INFORMATION DISCUSSED IN THIS PRESS RELEASE MAY CONSTITUTE FORWARD-LOOKING STATEMENTS WITHIN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, AND THE FEDERAL SECURITIES LAWS. ALTHOUGH THE COMPANY BELIEVES THAT THE EXPECTATIONS REFLECTED IN SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS AT THE TIME MADE, IT CAN GIVE NO ASSURANCE THAT ITS' EXPECTATIONS WILL BE ACHIEVED. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE INHERENTLY SUBJECT TO UNPREDICTABLE AND UNANTICIPATED RISKS, TRENDS, AND UNCERTAINTIES SUCH AS THE COMPANY'S INABILITY TO ACCURATELY FORECAST ITS' OPERATING RESULTS; THE COMPANY'S POTENTIAL INABILITY TO ACHIEVE PROFITABILITY OR GENERATE POSITIVE CASH FLOW; THE AVAILABILITY OF FINANCING; AND OTHER RISKS ASSOCIATED WITH THE COMPANY'S BUSINESS. THE COMPANY ASSUMES NO OBLIGATION TO UPDATE OR SUPPLEMENT FORWARD-LOOKING STATEMENTS THAT BECOME UNTRUE BECAUSE OF SUBSEQUENT EVENTS.