Petrosearch Energy Sells Blue Ridge Field Property
HOUSTON, Aug. 4, 2005 (PRIMEZONE) -- PetroSearch Energy Corporation (Pink Sheets:PTSG) ("PetroSearch" and "the Company") announced today that its wholly owned subsidiary, TK Petrosearch, L.L.C., has divested its interest in the Blue Ridge Salt Dome Field for approximately $2,140,000. The transaction closed on August 3, 2005, and is effective as of July 1, 2005. The buyer is Kellco Energy, Ltd., an oil and gas firm headed by an individual who previously managed the property for PetroSearch. The sale was the result of an arms-length negotiation with the buyer.
The Blue Ridge field, which was discovered by Gulf Oil in the early 1920s, is located in Fort Bend County, just outside of Houston. PetroSearch acquired an interest in the field in mid-2003 and began development drilling and work-over operations. At the time of the sale, PetroSearch had a leasehold interest of approximately 420 acres in the field, with working interests ranging from 35% to 70%.
As of December 31, 2004, the Company's share of the Blue Ridge property had approximately 77,000 barrels of proved oil reserves and a PV-10 value of $1,370,110, which represented approximately 10% of the Company's total PV-10 value as of that date. During 2005, the asset provided the Company a monthly average of approximately $75,000 of net revenue and 1,844 barrels of oil. The property had an estimated remaining 68,700 barrels of proved oil reserves at the time of the sale.
In announcing the sale, Richard Dole, President and CEO of PetroSearch, said, "We received an excellent price for the property, and the sale allows us to re-deploy our funds into projects that have a better 'fit' with our business model and strategic plan."
FDM Price at posting:
$1.15 Sentiment: None Disclosure: Not Held
