NEWS IS OUT!! Any comments?
hursday July 30, 8:31 am Eastern Time
Company Press Release
Nevtah/Pamco: Gas Well Contract Executed
PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--June 30, 1998--Nevtah Capital
Management (''NEVTAH'')(NASD - OTC: NTAH), announces the following major developments
relating to its joint venture with Petroleum Asset Management Company (''Pamco'') and its
patented stripper well technology.
Pamco has executed an agreement with a major oil and gas company to install a special application
of its system that will remove water from a gas well and separate the gas from the water. The
Company has over 500 methane gas wells and 4000 oil wells that can utilize Pamco's technology.
They also plan on drilling an additional 100-150 methane gas wells per year. Pamco has
successfully completed a one year Beta test on gas well applications. Pamco met with the company
engineers and production managers to review the test results. The parties then agreed and set forth a
schedule and budget to begin installing Pamco's system on their gas wells. The goal of the major
producer is to become one of the most progressive and innovative companies in their industry.
Therefore, they not only want to use the system, but are anxious to assist Pamco in developing the
full remote management and telemetry application of its system in their fields. This will also include
the process of installing Pamco's system on a well without the need for electrical power and using
solar battery controllers to operate new wells in remote drilling areas. This is expected to save the
company over $20,000 per well. There are also many other companies throughout the United
States drilling methane gas wells that can utilize Pamco's technology.
Nevtah/Pamco is finalizing negotiations for several leases in Corsicana, Texas. These leases include
several hundred acres of mineral rights with several hundred currently producing oil wells. The
acquisition will include drilling rigs, equipment, buildings and other assets. These leases also have
large proven reserves with substantial additional drilling opportunities.
The Company will also install its first prototype pump system with the ability to skim oil off the top
of the water in the bore hole, sometime next week. This is one of the new patent application features
that has only been tested with Pamco's standard pump design. In Texas during 1996, Pamco was
able to increase production while decreasing the water by placing the pump and sensor in the exact
location for oil above water. This new design will take full advantage of this potential. Texaco just
announced last year they had invented a double down hole pump with the pump jack to do a similar
function. Their pump and procedure is a very expensive feature and will be uneconomical for
stripper wells. Pamco believes that its system has this potential and would be a major cost reducing
feature for water flood and water driven oil wells.
Pamco is also filing patents on its latest computer software developments, which enables the
Company to program its computer controller to automatically operate its system. This will enable
Pamco to go immediately to telemetry, automatically unload the system, monitor the fluid in the bore
hole and to regulate the air management of several wells on one compressor. This also provides the
Company with another large market opportunity in selling the system to other stripper well
producers that purchase Pamco's technology.
Pamco has been developing its technology since 1986. They tested the system on over 50 oil wells
while finalizing the design and application of its pump system. The final design has been tested on 6
wells over the past 15 months. The results have significantly improved the economics of operating
stripper wells. Compare to pump jack recovery systems, Pamco's technology has been shown to
reduce costs from 50% to 80% and to increase production from 22% to 100%. With over 433,000
producing stripper wells in the US, Pamco's oil and gas stripper well technology provides the
Company with an enormous opportunity to develop its own leases and to sell the various systems to
other operators
Nevtah is still in negotiations with prospective joint venture partners to participate in the
development of its Matagorda Island gas field.
On behalf of the Board of Directors
Daniel P. Kesonen |
