HOUSTON, TX–(Marketwired – January 25, 2017) – Petrogas Company, Inc. (OTC PINK: PTCO) (“Petrogas Company” or “the Company”), today announced that it purchased from the Bureau of Land Management (“BLM”) 160 acres of oil and gas leases in Valley County, Montana.
Montana produced 28 million MCF of gas and nearly 83 million bbls of oil in 2015 and there are currently only about 41,000 wells on file.
“Montana is an up and coming oil and gas producer and we want to position the company to benefit from what we believe will be a rush to produce from unconventional drilling in the state once energy prices recover further,” stated Mr. Huang Yu, CEO of Petrogas Company.
“The 41,000 drilled wells are a sign that there is much more potential in the state. To put things in perspective, there are nearly 1,500,000 drilled wells in Texas,” added Mr. Huang.
Exxon, Vanguard, and Continental all have a stake in the Montana deposits
Three years ago, the United States Geological Survey (USGS) released a new assessment for oil and gas reserves in North Dakota, South Dakota and Montana. The assessment includes new estimates for the Three Forks Formation and updated estimates for the Bakken Formation.
By combining the estimates for Three Forks and Bakken, the USGS found that the region has far greater reserves of oil and natural gas than previously thought. The USGS estimates that the two formations have a total of approximately 7.4 billion barrels of undiscovered, technically recoverable oil, which is twice the amount that was reported in the 2008 assessment.
Valley County, where the company’s newest acquisition is located is right on the south western edge of the Bakken field and already has proven oil production.
About Petrogas Company, Inc.
Petrogas Company, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company’s growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information investors can visit www.petrogas-company.com.