Archer County TX Oil Leases
Granite Energy, Inc. (OTC: GNGI) (the Company), today announced it had acquired six proven, producing oil leases in Texas. The leases include 640 acres of the W.H. Patton Survey, located in Archer County, Texas, and 726 acres of the J.J. Young Survey, also located in Archer County.
“These leases offer existing production with tremendous potential for Granite Energy shareholders to participate in a significant proven reserve play, with economical drilling opportunities,” stated S. Matthew Schultz, Granite Energy’s President and Chief Executive.
The W.H. Patton Survey includes 5 leases covering both shallow and deep (below 2000’) zones, within a 640 acre tract, as well as all existing oil production. This survey is located in one of the most prolific shallow zones in the region. The J.J. Young lease includes 726 acres of shallow (above 2000’) drilling rights, and is located within one mile of the W.H. Patton.
Oil was discovered in Archer County in 1911, and by January 1, 2001, more than 489,066,000 barrels of oil had been taken out of Archer County lands.
The W.H. Patton lease has had the initial rework process, and has seven wells currently in production. Four new 210 barrel storage tanks have been moved on site, and new separators have been installed. All of the producing wells have new transformers and wiring, new pumps and motors, as well as new flow lines, well head assemblies, rods and tubing. Granite Energy anticipates four additional existing wells to be brought online immediately, and the commencement of new drilling within the quarter.
For additional information about Granite Energy, Inc., go to www.graniteenergy.com.
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Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, risk factors inherent in doing business.
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Granite Energy, Inc.
Aaron Bringhurst, 801-532-6800
Granite Energy, Inc.