Borger, Texas –(Newsfile Corp. – April 25, 2017) Molori Energy Inc. (TSXV: MOL OTC: MOLOF) (“Molori” or the “Company”) announces today that the Company has completed upon a trade with Ponderosa Energy, LLC of certain marginally-productive leases it shares with Ponderosa in Hutchinson County, Texas. As a result of the transaction, Molori will now have broad operatorship and hold a 100% ‘operated’ interest in all of its Red Cave oil and gas acreage in nearby Moore County, Texas.
With oil prices (“WTI”) nearing USD $70 per barrel, Molori has made the decision to focus the majority of its monetary and human resources on development of the Red Cave. With the successful oil discovery on the recently drilled 23-1R well, Molori has validated its thesis by drilling into the Red Cave and discovering oil on its existing acreage. As a result, Molori’s management has elected to accelerate its development of the Red Cave where large-scale frac technology has proven successful in unlocking the ‘virgin pressure’ within this oil prone formation.
Commented Joel Dumaresq, CEO of Molori, “We believe that the Red Cave play is one of the most promising onshore development opportunities in the continental U.S. today, and with oil testing the $70 mark the economics of the play are highly-compelling and warrant our full capital and attention.”
Molori’s plan is to move as quickly as possible to drill and frac its next development well. The Company will focus the next well location amongst a series of infill drilling targets which Molori’s technical team believes offer the opportunity to duplicate the broad drilling and production success enjoyed by its neighbours at Adams Affiliates.
Over the past year, Molori spent over $300,000 and more than 2 man years of analysis completing what the Company believes is the definitive study on the previously poorly-understood Red Cave formation. The study focused upon the analysis of approximately 370 well logs and cores from wells that were drilled through the Red Cave and down into the now largely-depleted Brown Dolomite formation. It is from this study, as well as Texas Railway Commission data on Adams Affiliate’s own Red Cave development success, that Molori has created this digital database at the heart of its expansive land acquisition campaign in Moore County.
Further to its press release of March 16, 2018, the Company is also pleased to announce that following a short absence, Judy-Ann Pottinger has rejoined the Molori team and will immediately resume her role as “Director of Communications”.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company’s exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. 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 and frac 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.
For further information, please visit the Company’s website at www.molorienergy.com or contact
Molori Energy Inc.
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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.