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Gold/Mining/Energy : ABRG (formerly AMBY) any news? -- Ignore unavailable to you. Want to Upgrade?

To: LaShark who wrote (1128)	8/3/1999 10:50:00 AM
From: Chris K.	Read Replies (2) \| Respond to of 1358

NEWS -- NEWS -- NEWS -- GOOD NEWS (BSNS WIRE) Oil and Gas Division of Ambra Resources Group Inc., Mid-Year Oil and Gas Division of Ambra Resources Group Inc., Mid-Year Report Business/Energy Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 3, 1999--The acquisition of multiple Oil & Gas Production Projects in the first half of 1999 by Ambra Resources Group (OTC BB:ABRG) and 50% owned partner, Venture Oil & Gas Inc., have added significantly to the asset and revenue base of both companies. Additional projects are either contracted for or are under review for possible acquisition in the second half of 1999. The combined production from these acquisitions and from the contracted purchases which Ambra Resources Group Inc. and Venture Oil and Gas Inc. are obligated to complete are conservatively estimated to be: Gas: 6000 to 6500 thousand cubic feet per day Oil: 895 to 1115 Barrels per day Revenues from these production levels based on current commodity prices of $2 per thousand cubic feet of gas and $20 per barrel of oil would provide Ambra with a daily cash flow of $28,000. As the current inventory of production wells begins to come online and to increase cash flow, Ambra and Venture anticipate acquiring other producing projects. These acquisitions represent Ambra's goal of increasing shareholder value by taking advantage of the timely opportunity of purchasing surplus production properties and of remediating under performing projects to obtain new profitable oil and gas production. The current status and expected production output for the projects acquired in 1999 are reported below. Additional reports will be issued when newsworthy developments occur. The Red River Bayou Unit of Red River Parish, La., is a 7,300 acre project with 57 oil production wells. After completely remediating the Red River Bayou Unit, Venture and Ambra expect daily production of oil to range from 500 to 700 barrels. Phase one remediation involves five wells and phase two includes five to eight wells. Phase one is scheduled for August and phase two within the following 60 to 90 days. A reserve estimate prepared for the Unit Operator gives recoverable oil of 2.5 million barrels from the Unit formation. State Lease "9800" No. 1 Well, Bastian Bay Field in Plaquemines Parish, La., has been remediated and has indicated a flow rate of between 2.5 to 3.0 million cubic feet of gas per day. The gas purchaser is preparing to lay gathering line to connect to the sales transmission line this week. An agreement has been reached whereby gas sales from the well will receive a flat rate of $2.25 per mcf annually. Also, gas sales will be subject to the daily index price and Ambra will receive all proceeds for sales in excess of $3.00 per mcf. Preliminary estimates of 8 to 10 Billion cubic feet of gas reserves have been assigned to this well. Remediation of State Lease "9798", well No. 2 in Lake Washington Field, Plaquemines Parish, La., is expected to be completed within two to three weeks. Prior tests on this well indicate daily oil production ranging from 80 to 100 barrels and approximately 300 thousand cubic feet of gas per day. The well has additional zones and several other developmental locations to be drilled. Production recoveries for this well are estimated to be 100,000 barrels of oil and 200 million cubic feet of gas. In Coalton Field, Okmulgee County, Okla., Roy Number 1 Well has undergone perforations in the Lower Gilcrease formation and had shut-in pressure of 850 pounds. Production commenced on July 21 into the Enerfen sales line. Additional perforations will be made at 1900 to 2000 feet and will be completed within three weeks. The well has four more zones to recomplete as well as additional development drilling locations on offset leases. Current production is now estimated to be between 300 to 500 mcf of gas per day for the zones at depths of 1900 feet to 2000 feet. In the East Bell City Field of Calcasieu Parish, La., Ambra and Venture are negotiating to purchase interests in eight production wells on a 480 acre lease. Expected production for this project is 1,000 mcf of gas per day and 65 barrels of oil per day for three wells with additional development of the five remaining wells adding more production. This transaction is expected to close within thirty days. In Charenton Field, St. Mary's Parish, La., Ambra Resources and Venture O & G are negotiating to acquire working interests in six oil production wells. Three of the wells were producing 40 barrels per day prior to shut-in due to saltwater disposal problems. It is anticipated that new oil production will be in the range of 220 barrels per day with estimated gas flows of 200 thousand cubic feet of gas per day for these three wells. There are several proven developmental drilling locations on this lease plus additional proven pay zones to be completed. The operator has already begun work in anticipation of closing this transaction in the next thirty days. Recoverable oil reserves are estimated at 320,000 barrels with 300,000 barrels of undeveloped reserves to be drilled. Ambra and Venture are acquiring interests in the S.Barataria Field of Jefferson Parish, La. This project is expected to produce 1,000 mcf of gas per day plus 50 barrels of oil per day after remediation work. Expected total recoverable reserves are 50,000 barrels of oil and over one Billion cubic feet of gas. This acquisition is due to close in fifteen days. Acquisition of the 1,350 acre, 5 well Kings Ridge project in LaFourche Parish, La., is expected to close within two weeks and initial operations for remediation of the wells will begin before Aug. 15, 1999. The project is expected to produce 900 mcf of gas per day and 300 barrels of oil per day after remediation. An additional two developmental locations are present which are estimated to be capable of producing 500,000 barrels of recoverable oil. Ambra Resources and Venture Oil and Gas are acquiring interests in two re-entry prospects on a 1,040 acre project in Log-Pat Field of Scurry County, Texas. These two wells were producing 53 barrels of oil from the Lower and Upper Wichita-Albany zones and are expected to make that production or better after recompletion. Operations should begin after closing within 45 days. The companies have contracted to purchase two additional wells for recompletion in Oklahoma. One well is located in the Oktaha Field of Muskogee County and the other is in the Greasy Creek Field of Hughes County of Oklahoma. The expected post remediation production for each well is 500 thousand cubic feet of gas per day plus 10 - 25 barrels of oil per day for the Oktaha Field well. Work on this project is expected to begin within sixty days. By the Board of Directors, John M. Hickey, President. --30--MJB/ho* CONTACT: Ambra Resources Group Inc., Vancouver Investor Relations, 800/698-3377 or 604/669-2723 ambraresources.com KEYWORD: TEXAS OKLAHOMA LOUISIANA INTERNATIONAL CANADA INDUSTRY KEYWORD: OIL/GAS ENERGY MERGERS/ACQ Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com * end of story *