Borger, Texas — (Newsfile Corp. – April 18, 2018) Molori Energy Inc. (TSXV: MOL) (OTC: MOLOF) (“Molori” or “the Company”) is pleased to announce that the Company is selling oil produced from its Red Cave well, the Thompson 23-1R (“The well”).
The well was completed earlier this year following which the well was logged with the logs showing a hydrocarbon pay zone of approximately 40 feet across the 300 foot Red Cave zone. In January 2018, Molori’s Borger-based operational team completed a large-scale water frac on the well. An initial production (IP) rate of approximately 28 boepd* was achieved. Molori’s ability to access light oil from the Red Cave demonstrates proof of concept of Molori’s thesis on the productivity of the Red Cave Formation.
Having completed an extensive analysis on the production patterns from the well, Molori`s technical team has gleaned that revising its completion technique will achieve increased production rates. Future wells will include ball drops during the pre-frac breakdown and again during the water fracture treatments to divert the fluid and frac sand to treat the entire zone more uniformly. In addition, resin sand will be used during the tail of the job to reduce the amount of sand flow back during early production. It is expected that these fracture treatment changes will significantly enhance flow from the Red Cave formation in future wells.
Commented Joel Dumaresq, CEO of Molori: “Over 18 months ago Molori commissioned and has now completed what we believe to be the largest and most extensive evaluation of the shallow Red Cave formation ever undertaken. Dozens of well logs have been accumulated and analyzed resulting in a strong understanding of this “virgin” and previously poorly understood hydrocarbon bearing formation. Now, Molori has validated its thesis by drilling into the Red Cave and discovering oil on its existing acreage. With this data in hand, Molori is now moving to complete upon its next phase of land acquisition, capitalizing upon its proprietary knowledge of the Red Cave ribbon of oil.”
The Company is now moving forward with its plan to drill the remaining appraisal wells. The remaining well locations will be strategically focused upon sections of land situated within as little as 350 feet of Adam’s Affiliates Red Cave development where Adam’s Affiliates have succeeded in the past two years in drilling over 50 oil wells all of which have been discoveries and where typical IP rates have been greater than 40 boepd with standard EUR’s (“Estimated Ultimate Recovery”) of 40,000 boe.
Molori is also very pleased to announce that the Company has been selected to the “TSX Venture Top 50”. The TSX Venture 50 is a ranking of the strongest companies on TSX Venture Exchange by share price, trading volume and market capitalization. The winning companies have seen tremendous growth over the past year, offered remarkable return to their shareholders and are actively traded in the market.
* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% oilas reported.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The Company currently owns a 25 percent working interest in certain leases located in the bifurcated Texas panhandle, operated by its Texas-based partner Ponderosa Energy LLC. Molori’s business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.
Molori’s operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading edge exploration techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.
CEO and Director
Molori Energy Inc.
(604) 336 3193
For further information, please visit the Company’s website at www.molorienergy.com or contact.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW RELEASE.
Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.