Bonanza Oil & Gas Provides Drilling Update And Commencement Of Production Activities
HOUSTON--(BUSINESS WIRE)--Bonanza Oil and Gas, Inc. (OTCBB:BGOI - News), an independent crude oil and natural gas exploration company, is pleased to announce the completion of its first two of 14 planned horizontal wells in Apclark Field, Borden County, Texas, and commencement of production.
The Jackson #1 well was completed on September 3, 2008, and the Everett #1-H was completed on September 22, 2008. The wells were drilled to approximately 6,300 feet vertically and 4,000 feet horizontally. The wells were stimulated with multi-stage fractures and are currently producing together approximately 140-150 barrels of oil per day and 31 Mcf of natural gas per day from the Spraberry formation. Bonanza has a 25% working interest and an 18.75% net revenue interest in the field. The Company is continuing with its exploitation program with the drilling of its next two horizontal wells commencing during the fourth quarter. Bonanza is also expanding the current 6,700 acre position by securing approximately 500 additional acres in the adjacent area. "The Company is very pleased with the early performance of these wells, and is looking forward to the continuous drilling program. These first two completions validate our exploitation thesis in the field and the strength and value of the Company," said Bill Wiseman, President and CEO.
The Company is also pleased to announce that it anticipates commencement of drilling operations on its Point Bar Prospect in Damon Mound field on or before October 31, 2008. The Company initially expected to spud this well in September, however due to Hurricane Ike which hit the Texas Gulf Coast on September 13, 2008, the Company's drilling contractor was delayed on other projects. The Company's initial well, which has been fully funded and is being drilled to approximately 4,000 feet, is anticipated to take 7-10 days to drill.
About Bonanza Oil & Gas, Inc.
Based in Houston, TX, Bonanza Oil and Gas, Inc. holds assets ranging from current producing properties and wholly owned prospects to developing working interests in proven undeveloped properties.
About Viewpoint Securities, LLC
Viewpoint Securities, LLC is the financial advisor for Bonanza Oil & Gas, Inc. Viewpoint provides investment banking and merchant banking services to emerging companies within the oil and gas, mining and other natural resources sectors. The company's investment banking specialists are focused on delivering creative corporate finance solutions to fit the specialized needs of its clients. The group is headquartered in La Jolla, California. For more information you can contact the company at (858) 480-2800 or by email at info@vpsecurities.com. For more information go to: www.vpsecurities.com
Safe Harbor Statement
Some of the statements made by the Company in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. The Company believes that its primary risk factors include, but are not limited to: production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others. Additional information concerning these and other important factors can be found within the Company's filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.
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