Latest Press Release:
For Immediate Release
Thursday, December 12, 1996
LEASE ACQUISITIONS
[IRVNIE, CA] --- NuTek, Inc. (NASDAQ BB Symbol NUTK) announced agreements to purchase 71 wells today, bringing total number of wells owned to 178. It also has interests in 66 wells through a joint venture. 25 wells are being purchased through Vacu-Lift Production, Inc., in the Bigfoot field in South Texas. This 660 acre purchase will add significant reserves to NuTek's holdings. The company intends to selectively open up two pay zones in these 25 wells that should boost cash flow in its Texas operations. The wells produced from 20 to 102 barrels a day when initially drilled and all wells drilled on this lease were commercially successful. The Company feels that this property is a high probability, high return, location upon which to drill additional wells. A step-out well is planned in the near future.
Vac-U-Lift Production Company, Inc. has also purchased 20 additional wells in the Pearsall Austin Chalk Field on 1,300 acres and NuTek, Inc. has purchased 26 wells on 1,920 acres in Creek County, Oklahoma. The company intends to install its proprietary "Bailer Pumps" to operate these wells. After these acquisitions, Vac-U-Lift Production Company, Inc. will own and operate 97 wells in Texas.
In July 1996, NuTek, Inc. purchased Vac-U-Lift Production Company, Inc., a Texas corporation, producing oil from the prolific Austin Chalk Formation. The purchase included 52 wells and associated production equipment, as well as the stock of Vac-U-Lift Production Company, Inc. Through its swabbing trucks and proprietary "Bailer Pumps," NuTek, Inc. holds a distinct competitive advantage over the average oil production company.
"We are also examining opportunities to diversify into the oil service business. The recent rise in oil prices has sparked renewed drilling in Texas and Louisiana. We feel that this diversification will allow us to take advantage of this increased drilling activity and provide an "in-house" arm with which to exploit our existing acreage. We plan to continue acquiring new wells and acreage and several additional leases are currently being negotiated," said Rodger Garrity, President. |
