Oct 5 2012
Native American Energy Group, is pleased to announce that it has commenced oil production on two wells in the Williston Basin in northeastern Montana. The company also announced that Zacks Investment Research has initiated analyst coverage of NAGP with an "Outperform" rating.
Production is now underway at the Wright 5-35 and Beery 2-24 wells. During August and September, the company completed electrical system repairs and upgrades to surface equipment and subsurface flow-lines. The Wright well initially flowed approximately 62 barrels of oil in the first 18 hours and settled at 53 barrels of oil per day. The well will be pumped down over the next few days and the oil cut is expected to increase to approximately 50% based on previous swab testing and production results. The Beery well is currently flowing between 8 to 10 barrels of oil per day with no water. The well is currently producing with a flowing tubing pressure of 47 psi using an adjustable choke. Over the next several days, the company will be adjusting the choke to achieve continuous production on the well. As the company has flowed this well from time to time in the past several years, production from flowing operations has varied between 8 barrels of oil per day to as much as 35 barrels. Due to the enhanced oil recovery operations on the Beery well and the resulting increase in pressure and overall fluid output, the company expects a higher flow rate once the choke is adjusted. The company will issue a production update in the near future to keep shareholders informed of the progress.
In addition to the two wells now in production, the company currently owns a 100% working interest in three oil wells in Montana which include the Beery 22-24, Cox 7-1 and the Sandvick 1-11. Subject to obtaining adequate financing, the company intends to fully complete both Beery wells during the remainder of 2012 and the Cox and Sandvick wells by the summer of 2013. The Company will announce the results of these efforts as they occur which include procurement of financing.
Chief Executive Officer Joseph D'Arrigo stated, "We are pleased to have established commercial production on the Wright and Beery wells and we look forward to making this transition to a revenue generating company in this fourth quarter of 2012."
The company also announced today that Zacks Investment Research has initiated coverage of the company. Zacks, which provides independent investment research to individual and institutional investors, has just released a comprehensive report that describes Native American Energy Group's advanced stage oil & gas development program in the Williston Basin and growth strategy in detail, along with its recommendations. This report includes information about the Company's business model including future planned acquisitions, and oil production, as well as other important company-related information.
Source: http://www.nativeamericanenergy.com/