Biogenerics Limited Announces Acquisition of Additional Johnson Anticline Acreage in the Highly Prospective San Juan Basin
December 02, 2005 17:13:02 (ET)
FARMINGTON, N.M., Dec 2, 2005 (PRIMEZONE via COMTEX) -- Biogenerics Limited, (Pink Sheets:BIGN) announced today that subsidiary company, WW Oil & Gas, Inc., has completed the acquisition of an additional 320 acre leasehold interest in the Johnson Anticline structure of the oil and gas rich San Juan Basin. The new acquisition doubles the 320 acres currently held to a total of 640 acres under control as part of the Company's Johnson Anticline oil and gas exploitation project.
The newly leased property contains a well drilled circa 1975 that encountered oil in five (5) separate formations from depths of 2,000 to 6,000 feet. In 1975 the price of oil was between $8 and $9 a barrel. With the price of San Juan Basin Sweet Crude now at nearly $60 per barrel, management believes that at least two (2) of the shallow formations (the Mesaverde and the Gallup formations) could potentially be capable of commercial production.
On an adjoining lease located on the flank of the Johnson Anticline structure, a well was completed in the shallow sands of the Mesaverde formation. That well had an initial flow rate of 119 BOPD with no artificial stimulation, and produced over twenty-seven thousand barrels of oil (27,000 + BO) during its production span. Therefore, it is management's belief that the new leasehold acreage, which is positioned directly over the Johnson Anticline, appears to contain a large proved, but underdeveloped oil reserve in the Mesaverde formation.
The Johnson Anticline is located approximately two miles south of the Rio Puerco Field, a field that produces from natural fractures in the Gallup Sandstone. Another abandoned well which is located directly over the Johnson Anticline encountered severe lost circulation in an oil bearing sand in the Gallup. Due to this event, it is very likely that the sands in this region contain natural fractures, so that prolific production may be possible from the Gallup formation. In 1984, when the Rio Puerco Field was discovered, the Denver Post reported flow rates of between 50 to 320 barrels of oil an hour from nearby wells.
Three (3) miles south of the Johnson Anticline on the Media Dome structure, there has been historic oil production from the Mesaverde, Gallup and Entrada formations, with the Entrada producing over one million barrels of oil (1,000,000 + BO). The Entrada accumulation covered an area of approximately 141 acres (Oil and Gas Fields of the Four Corners Area, Vol. II, pgx. 410-412). Based on seismic data, the top of the Johnson Anticline structure covers 600 acres, so there could be over four million barrels of recoverable Entrada oil (4,000,000 + BO) on the top of Johnson Anticline.
Standard spacing for oil wells in New Mexico is 40 acres. The leases that WW Oil & Gas has the right to drill and earn have room for up to sixteen (16) oil wells. Drilling is planned as soon as the new lease becomes effective, a well is permitted, and the necessary rig is available to commence drilling.
WW Oil & Gas may drill and earn interests in roughly half of the land directly over the Johnson Anticline structure and has the opportunity to develop proved reserves.
About WW Oil & Gas Inc.
WW Oil & Gas Inc., is a subsidiary company of Biogenerics Limited, and is in the business of acquiring leases and oil and gas related assets. Such acquisitions are for the purpose of development, exploration, and exploitation. Currently, there are 3 leases under agreement for exploitation. Comprehensive drill programs are being developed for full exploitation of these properties.
About Biogenerics Limited
Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics also has joint venture activities with Tyche Energy, Hydroslotter Corporation and WW Energy Inc.
Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. Information on the factors which could affect the Company's operations or financial results are included in the Company's reports on file with Canadian securities regulatory authorities and the United States Securities and Exchange Commission. Forward-looking statements are based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
This news release was distributed by PrimeZone, www.primezone.com
SOURCE: Biogenerics Limited
Biogenerics Limited
Dale Boyd
Investor Relations
(905) 714-9422
www.bignltd.com
(C) 2005 PRIMEZONE, All rights reserved.
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