Wentworth Energy and Marathon Oil Sign Three-Year Lease and Joint Operating Agreement
Wentworth Energy, Inc. announced that it has signed a three-year Lease and a Joint Operating Agreement with Marathon Oil Company to explore approximately 9,000 acres of Wentworth Energy’s mineral block in Freestone County, Texas. The agreements give Marathon the right to drill deep gas wells on the minerals and the opportunity to partner with Wentworth Energy on drilling upper zones (above 8,500 feet) on a 50/50 basis.
Marathon Oil has secured an exclusive three-year lease on approximately 9,000 acres within the East Texas Deep Bossier Trend, while the Joint Operating Agreement sets the terms for the two companies to partner in developing the zones above 8,500 feet. In addition, Wentworth Energy’s drilling services subsidiary Barnico Drilling, Inc. will be the drilling contractor for the Joint Operating Agreement on any wells drilled from 0 to 8,500 feet or to the base of the Rodessa formation. As part of the agreement Wentworth Energy will acquire a seismic license giving it access to all seismic data collected during Marathon’s three-year lease of the minerals. Plans are in place to conduct extensive seismic research on Wentworth’s property, which is expected to provide valuable new information on potential oil and gas prospects on the mineral block.
“This is a unique opportunity for Wentworth Energy to dramatically accelerate the development of our property and increase the number of wells to be drilled on our 27,557-acre mineral block,” said Michael Studdard, Wentworth Energy’s President. “As an example, based on an 80 acre well spacing, there could be in excess of 100 drilling locations on this 9,000-acre section of the mineral block. Not only can we look forward to a royalty if these wells are successful, the Agreements partner us with Marathon on development of the shallower Woodbine and Rodessa formations.”
“The cost of drilling a deep well (10,000 feet to 18,000 feet) runs in the neighborhood of three to five million dollars,” said John Punzo, Wentworth Energy’s CEO and Chairman. “By joining forces with one of largest energy companies in the Country, we have an opportunity to dramatically increase the amount of drilling taking place on our minerals and capitalize on Marathon Oil’s enormous expertise and knowledge base. The seismic license gives us access to all 3D seismic Marathon decides to shoot on the minerals, providing us not only with access to important data on the 9,000-acre section but on our neighboring mineral acreages as well.”
About Marathon Oil
Marathon is the fourth-largest U.S.-based fully integrated international energy company engaged in exploration and production; integrated gas; and refining, marketing and transportation operations. The company has exploration and production activities in the United States, the United Kingdom, Angola, Canada, Equatorial Guinea, Gabon, Ireland, Libya and Norway. Marathon is the fifth largest refiner in the U.S. with 974,000 barrels-per-day of crude processing capacity in its seven-refinery system. The Company’s retail marketing system comprises approximately 5,600 locations in 17 states; nearly three-quarters are Marathon brand locations. Marathon serves the Midwest and Southeast as a petroleum products marketer with 85 light product and asphalt terminals and access to approximately 7,700 miles of pipeline. For more information about Marathon, visit the Company’s Web site at www.marathon.com.
About Wentworth Energy, Inc.
Wentworth Energy, Inc. is a diversified energy company focused on the responsible development of America’s natural resources while maximizing shareholder value. Wentworth Energy applies innovative technologies toward the discovery and development of a diverse portfolio of high-value, low-risk energy projects in North America, including the oil and gas fields of East Texas. Wentworth Energy owns a 27,557-acre mineral block in east central Freestone County and west central Anderson County in the active East Texas Basin, as well as an active oil and gas contract drilling company that has serviced East Texas drilling demand since the late 1970s. Wentworth Energy trades under the ticker symbol WNWG. For more information on the Company visit www.wentworthenergy.com.
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words “expects,” “projects,” “plans,” and certain of the other foregoing statements may be deemed “forward-looking statements.” Although Wentworth Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.
Contacts: Wentworth Energy, Inc. Barry Forward Corporate Communications & Investor Relations 1-800-725-9149
Website: www.wentworthenergy.com
