NUTK News of intent to acquire $300 million
oil and gas reserves.
Thursday December 9, 7:04 am Eastern Time
Company Press Release
Nutek to Acquire $300 Million in Oil & Gas Reserves
HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--Dec. 9, 1999--Nutek Inc. (OTC BB:NUTK - news) a diversified holding company, Thursday announced its further intent to acquire gas reserves belonging to the Clipper Operating Co.
The Clipper Operating Co. has an established four mile gathering system in place and is currently listed in the top 25 producers in Atascosa County in Texas.
William G. Ellis, B.S., M.A., a registered independent Geologist in both Texas and California has already calculated that there are 90 million barrels of oil in place with a conservative 10.8 million barrels recoverable on the Clipper Properties. The total value of these recoverable reserves including the gas is more than $300 million.
P. R. Maupin, President of Clipper who will head Nutek Oil stated, ''We are looking at further exploration and testing the Deeper Horizons for additional gas reserves on the properties. A well that was recently tested to the west of our fields has yielded significant gas reserves. We will be testing two of our wells by drilling down an additional 800 feet which could yield substantial gas production for us.''
Murray Conradie, Nutek CEO stated ''In initial projections we are expecting a positive cash flow of around $225,000 per month from the oil and gas reserves once the new wells are producing.''
For comparison in Atascosa County EOG Resources (NYSE:EOG - news) a recent spin off of Enron Corp. (NYSE:ENE - news) produced 77,294,000 cubic feet of gas in August 1999 from seven wells generating $185,000 in revenue, EEX Corp. (NYSE:EEX - news) produced 334,625,000 cubic feet from 31 wells.
Safe Harbor Forward-Looking Statements:
Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.
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Contact:
Nutek Inc., Huntington Beach
Murray Conradie, 714/799-7266
Fax: 714/799-5466
E-mail: investors@nutk.com
nutk.com
Susie |
