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Petro River Receives Formal Notice of Approved Change in Pearsonia West Concession Requirements From Osage Mineral Counsel
Petro River Receives Formal Notice of Approved Change in Pearsonia West Concession Requirements From Osage Mineral Counsel.
About this update from Petro River Oil Corporation
[{"type":"text","content":"\n \n \n Petro River Receives Formal Notice of Approved Change in Pearsonia West Concession Requirements From Osage Mineral Counsel\n \n \nPetro River Receives Formal Notice of Approved Change in Pearsonia West Concession Requirements From Osage Mineral Counsel\n\nProvides Significant Costs Savings and Asset Preservation to Core Asset\n\n \n HOUSTON, TX--(Marketwired - Jul 31, 2015) - Petro River Oil Corp (OTCQB: PTRC) (\"Petro River\" or the \"Company\") announces that, on July 27, 2015, it has received formal notice from the Osage Mineral Council that the new concession terms for the Pearsonia West Concession (\"Pearsonia West\") are effective and formalized. Pearsonia West is a 106,500 contiguous acre position in Osage County, Oklahoma which Petro River owns a controlling interest in through its investment in Bandolier Energy LLC, whole owner of the concession. \n The new terms allow for vertical drilling obligations to hold the concession which previously had horizontal drilling obligations. This provides a significant cost savings to the company and preserves potential control of its core asset until 2018, assuming the negotiated obligations are met. Previously, the concession required 11 horizontal wells to be drilled by the end of 2015 with the concession terminating in the event these wells were not drilled. The estimated cost of this obligation was approximately $22,000,000 USD. \n Pursuant to the new terms, assuming completion costs of $300,000 per vertical well, the drilling obligations only require capital expenditures of: $1,800,000 USD in 2016, $2,700,000 USD in 2017, and $3,600,000 USD in 2018, collectively $8,100,000 USD to hold the entire concession. This represents a cost savings to the company of approximately $14,000,000 USD while gaining an extra three years of potential control. \n Shane Matson, President of Bandolier Energy, commented, \"The change in our concession obligations as a result of current oil prices allows our technical team to apply the significant learning from the productivity of middle and upper Mississippian towards vertical exploitation. We will be able to test the stacked pay carbonate system the Pearsonia West region exhibits. Initial wells will focus on the seismically defined structures and use multi-staged completions. Pending results and an increase in the price of oil, information ...