PetroSun Acquires 985,000 Acres of Oil and Gas Mineral Rights in New Mexico and Arizona
Thursday, August 10th 2006
PetroSun Drilling, Incorporated announced that the company has entered into a lease agreement with NZ Oil and Gas, LLC that contains 985,000 acres of oil and gas mineral rights in New Mexico and Arizona. The leasehold includes prospective acreage in the San Juan Basin of New Mexico and the Holbrook Basin of Arizona that was reviewed in an independent Qualitative Assessment of Oil and Gas Potential by the Ryder Scott Company.
The initial term of the leasehold agreement is for a period of five years. During this timeframe, PetroSun plans to engage in strategic joint ventures with industry partners to fully exploit the prospective acreage. PetroSun subsidiaries, Bengal Drilling and Bobcat Pipe & Supply, will provide the drilling services, pipe and equipment for the projects. The Company intends to begin its exploration activities within the NZOG leasehold during the third quarter of 2006.
The San Juan Basin is the second largest natural gas field in the contiguous United States. The basin contains more than 300 oil and gas fields that produce from the Paleozoic, Jurassic, Cretaceous and Tertiary reservoirs.
The Holbrook Basin of Apache County, Arizona contains former helium producing fields (Pinta Dome, Navajo Springs and East Navajo Springs) and promising indications of oil, natural gas, helium and CO2 from exploration wells drilled within the basin.
PetroSun’s current operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona, Utah and Australia in 2006. PetroSun provides a comprehensive array of products and services to the oil industry. Algae BioFuels, a wholly owned subsidiary of PetroSun, is an emerging producer of biodiesel derived from the cultivation of algae. The Company’s cutting edge technologies, combined with a proven ability to apply them effectively and safely within a disciplined ROI framework, creates long term value for PetroSun shareholders and partners. PetroSun is headquartered in Phoenix, Arizona. For more information about PetroSun visit the company’s website at http://www.petrosun.us
Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risks and uncertainties, which may affect the Company’s business and prospects and cause actual results to differ materially from these forward-looking statements.
Contact: PetroSun Drilling, Inc. Investor Relations Email Contact
Source: PetroSun Drilling, Incorporated