Virtus Oil and Gas Corporation (VOIL) (“Virtus” or the “Company”) today announced that an updated independent assessment of the Company’s prospective resources by Gustavson Associates now indicates a 58.2% increase to the Company’s best estimate of unrisked P50 recoverable resources on the Parowan Project.
The evaluation report received yesterday is an update to the original April 10, 2014 version to reflect Virtus’ additional acquired acreage and mineral leases that were acquired on May 6, 2014.
A complete copy of the new and updated Gustavson Report can be found on the Company’s website, or by following this link.
The increased prospective resources estimated in the report relates specifically to the Parowan Prospect (11,140 Acres out of Virtus’ total 55,477 Acres). The resource estimates described in the report are based on Gustavson’s view of the potential reservoir areas, which includes the interpretation of the recently acquired extra Seismic Data and other parameters from Analog fields.
Management Comments
Rupert Ireland, CEO of Virtus, commented, “The estimated resources referenced in the updated report on the Parowan Project is extremely encouraging for our exploration team and for investors alike. This is yet another data point that strongly supports our operational strategy and reinforces our optimism for future potential at Parowan.”
Brett Murray, COO of Virtus, added, “Our exploration program is moving along ahead of schedule. We’ve been busy utilizing the interpreted seismic data findings to form two Federal Units in Iron County, Utah, a pertinent stage before moving on to the next phase of our exploration program. Upon finalizing the federal units, our team can begin plotting the location of the first well and soliciting proposals from service providers to drill the first exploration well.”
Why Utah is an Important Energy Leader?
The U.S. Energy Information Administration (EIA) reported in 2009 that Utah contains four of the nation’s 100 largest oil fields and two of its 100 largest Natural Gas fields.
The state’s oil production bottomed at 36,000 barrels of oil per day in 2003 and has since witnessed a resurgence in drilling and production activity. According to U.S. Energy Information Administration, production in Utah averaged 96,000 barrels of oil per day in 2013, a more than 166% increase from 2003 levels.
Looking longer term, Utah and the large number of oil and gas exploration and production companies exploring the state, remain committed to the development of fossil fuels, oil sands and oil shale reserves as part of the state’s 10-year Strategic Energy Plan. There are currently more than 11,200 wells currently in active production in Utah that have been drilled by the industry’s leading E&P operators. In 2014, an additional 1,033 permits have been filed with the state to drill additional Oil and Gas wells.
The rock quality, geographic location, geologic features, production history and pro-business environment are what initially attracted Virtus to Iron County, Utah.
Geographically speaking, as refineries on the Texas Gulf Coast continue to run at full capacity and utilization, oil companies are looking to expand to new markets on the West Coast creating new refinery capacity and oil demand near Virtus’ projects in Utah.
As counties and townships in oil and gas producing states like Colorado, California and Texas battle potential hydraulic fracturing bans, Virtus is pleased to report, like many other Utah based companies that its operations will not require the hydraulic fracturing completion process, but rather a traditional Vertical Well, which is known to be a fraction of the cost of other alternatives.
About Virtus Oil and Gas Corporation
Virtus Oil and Gas Corp. (VOIL) is a Houston-based oil and gas exploration and production company currently focused on the Parowan Project, a 55,477acre prospect targeting the Central Utah Thrust Belt. The prospect is situated near recent Utah discoveries, including Wolverine Gas and Oil’s Covenant Oil Field, which is consistent with Virtus’ strategy to acquire and develop oil and gas resources in proven, onshore basins in the United States.
Forward-looking Statements
This news release may contain “forward-looking” statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company’s products, as well as additional risks and uncertainties that are identified and described in the Company’s SEC reports. The company will need to raise additional financing in order to advance its exploration and drilling program. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Cautionary Note to Investors Concerning Prospective Resources
This news release uses the term “prospective resources.” Virtus Oil and Gas advises investors that the U. S. Securities and Exchange Commission (“SEC”) does not recognize this term, and the SEC permits oil and gas companies, in their filings, to disclose only “reserves.” In addition, prospective resources have a great amount of uncertainty as to their existence and economic and legal feasibility. Investors are cautioned not to assume that estimates of prospective resources are economically drillable, or will ever be upgraded into reserves.
