HOUSTON, Nov. 21, 2011 /PRNewswire/ -- Aztec Oil
& Gas, Inc. (Pink Sheets: AZGS) ("Aztec") announced results of
an extensive reserve analysis for wells in its corporate account
and that of its sponsored drilling partnerships. Mr. Waylan Johnson, President of Aztec Oil & Gas
Inc., stated, "While our annual, audited financials are due to be
filed in December, 2011, we have just received the, approximately,
250 page reserve report for the producing wells which Aztec and/or
our partnerships own, or in which we participated. Due to the
extensive diversity of Aztec's wells, we felt that even though it
was costly and very time consuming, a very detailed reserve
analysis was necessary to fully document the company's reserves for
its shareholders. This step was also important because some due
diligence parties seem not to understand how complex and time
demanding it is to analyze a well portfolio as extensive and
geographically diverse as that of Aztec and its partnerships."
The final reserve report indicates an Escalated, 10% Discounted
Value of Aztec's well interests at $74,857,020, and an Escalated, Non-discounted
Value of the well interests at $240,104,740. The Non-escalated Value, with 10%
discount, was $43,022,330 and the
Non-escalated Value with no discount was $80,758,590. Barclay's oil price projections
were used for escalation calculations by the analysts, and
calculations were performed on PHDWIN, an industry accepted
software. "Also, a fair number of wells were not included due to
the fact that they are quite new and do not yet have enough
established production history to analyze. Obviously, not
included, are quite a few wells under contract which are either
drilled but not completed yet, or not yet drilled," continues
Johnson.
Mr. Johnson further commented, "Aztec switched from a natural
gas focus to an oil focus in 2008 for its own corporate activities,
as well as for that of all of its sponsored drilling
programs. With oil presently at, or near, $100 per barrel and natural gas dropping to
$3.02 per Mcf, we definitely feel we
read the market correctly, and did the right thing for Aztec and
our sponsored drilling partnerships. Our assets continue to
grow as planned and we are extremely proud of all of our dedicated,
talented people and partners who have made Aztec's achievements
possible."
About Aztec Oil & Gas, Inc.
Aztec is an experienced oil and gas exploration, development and
production company focusing on Texas plus other areas of the U.S. Its
interests are highly diversified between exploration drilling and
development drilling; however, when it offers drilling/production
partnerships, Aztec focuses primarily on shallow, Texas, lower risk, development and step out
wells. When offered, those programs/partnerships are placed, with
accredited investor partners, only through FINRA registered Broker
Dealers and Registered Investment Advisors, and are focused
primarily on oil, with natural gas normally being a secondary
target.
Aztec has been in the oil/gas business since 2004 and entered
the sponsored drilling program industry in 2006. Over the next
two and one half years, beginning in 2005, it intentionally
restricted itself to only three small, very limited Appalachian,
natural gas drilling partnerships in order to study and become
fully familiar with the nuances of the sponsored drilling program
industry before expanding to the Company's full
capabilities. In the summer of 2008, Aztec publicly announced
it was discontinuing any natural gas drilling in Appalachia, and
was ready to substantially expand its sponsored drilling program
activities, along with its other activities, primarily for oil in
Texas.
As to only its drilling partnerships, when offered; since 2008,
Aztec has, indeed, focused almost all of those partnerships on oil
wells in Texas. In addition to its early, initial three small
Appalachian natural gas drilling partnerships mentioned above,
Aztec has, intermittently, sponsored and closed a very significant
number of other drilling/production partnerships (all of the
latter, as stated, focused on drilling for oil in Texas). Aztec Energy LLC, a wholly-owned
subsidiary of Aztec, is the Managing General Partner of all Aztec
drilling partnerships; and another wholly-owned Aztec subsidiary,
Aztec Drilling & Operating, LLC, is the drilling contractor and
operator for such partnerships. Through its own participation
and contributions, Aztec owns a 30% interest in all of its
drilling/production partnerships. In general clarification of
its activities, in addition to its own direct corporate
participations in industry partner wells, Aztec sometimes sponsors
lower risk, development drilling/production programs which include
significant tax benefits; all of which are offered only through
FINRA Registered Broker Dealers and Registered Investment Advisors
to Accredited Investors. Aztec's sponsored drilling/production
programs, when offered, focus primarily on shallow oil/gas
drilling, are considered unique, and also incorporate a
sophisticated exit strategy for investors.
Please feel free to visit Aztec on the web at www.AztecOG.com.
An option is provided on the website to join the Aztec (corporate)
mailing list and receive up to date information on general Aztec
activities, including all Aztec press releases.
This release/announcement/document is neither an advertisement,
an offer to sell, nor a solicitation of an offer to buy securities,
Units or participations of Aztec. This release/document contains
certain statements, estimates, and forecasts with respect to future
performance and events. All statements other than statements of
historical fact included in this release/announcement/document, a
Memorandum, or the Aztec website, including, but not limited to,
statements regarding future performance of events, are
forward-looking statements. All such forward-looking statements are
based on various underlying assumptions and expectations and are
subject to risks and uncertainties which could cause actual events
to differ materially from those expressed in the forward-looking
statements. As a result, there can be no assurance that the
forward-looking statements included in this release/document, a
Memorandum, or the Aztec Website will prove to be accurate or
correct. In light of these risks, uncertainties and assumptions,
the future performance or events described in the forward-looking
statements in this release/document, a Memorandum, or the Aztec
Website might not occur. Accordingly, investors should not rely
upon forward-looking statements or historical performance as a
prediction or indicator of actual or future results. Also, Aztec
Oil & Gas, Inc., its officers, principals, employees, agents,
subsidiaries, affiliates and consultants, and the other parties,
investors, shareholders, partnerships and partners, involved in any
properties, programs, partnerships, and Aztec activities have
various, material conflicts of interests. The price(s) received for
the oil and natural gas produced from any investments, activities,
properties may be less than quoted NYMEX prices at any given times.
Specific results, yields, benefits, etc. are not guaranteed by us
and are subject to risks and limitations inherent in the energy
industry and/or described in any Memorandum and elsewhere. Aztec
does not undertake any obligation to update any forward-looking
statements, facts or other information, whether as a result of new
information, future events, subsequent circumstances or
otherwise.
Contact:
Phoenix IR Associates
Investor Relations
Tony Drake
(281) 579-1602
Shareholders@AztecOG.com
SOURCE Aztec Oil & Gas, Inc.