Pantera Petroleum, Inc. Acquires Working Interests in Baker Ranch Section 80 Re-Entry Well in West Gomez Field in Texas

AUSTIN, TEXAS--(Marketwire - Aug. 26, 2008) - Pantera Petroleum, Inc. (OTCBB:PTPE)(FRANKFURT:4PP) (the "Company") is pleased to announce it has acquired a 43.21% working interest and a 32.41% net revenue interest, in 21 leases across 651 acres in the West Gomez Field in Pecos County, TX ("Baker Ranch Well 80") for a cash purchase price of $350,000. Pursuant to its agreement with Lakehills Production, Inc. ("Lakehills"), the Company has the further option to acquire additional working interest in Baker Ranch Well 80 up to a 95% working interest and a 71.25% net revenue interest, along with up to 95% working interests in another four wells known as Baker Ranch Sections 74, 77, 78, and 81 in 2,587 acres for a purchase price of approximately $2.2 million.

Originally operated by Chevron USA, Inc., the Baker Ranch 80 Well produced approximately 16.8 billion cubic feet of gas from 1973 until it was plugged in 1992. According to an independent third party reserve report submitted to Lakehills by Andrew Burleson, Petroleum Engineer, Baker Ranch Well 80 has an estimated 13 billion cubic feet of natural gas in proven undeveloped reserves remaining in the Ellenburger formation. This well is located approximately one mile from the Company's Sibley 84 #1 Well, also a re-entry well, that was successfully placed back into production recently this August. The property is surrounded by adjacent properties operated by ExxonMobil, ConocoPhillips, Chevron, Hunt Oil Co., Chesapeake Operating, and Cimarex Energy.

The Baker Ranch wells were producing wells that were professionally plugged when gas prices hit lows in the mid 1980s and the early 1990s. All of the wells were plugged with cement plugs with the casing remaining intact in the ground. The Company's growth strategy targets re-entry wells like this because of the favorable risk/return profile demonstrated by wells that have long production histories and large undeveloped proven and probable reserves.

The Gomez Field was discovered in 1963 when production from the Ellenburger formation was established at a depth of approximately 22,000 feet. The Gomez Field Complex has produced in excess of 5 million barrels of oil and 5 trillion cubic feet of gas from more than 250 wells.

"Building upon our successful Sibley 84 #1 well and remaining wells in our Block 83 84 project, our acquisition of the Baker Ranch Well 80 is another great step forward for the Company," states Pantera Petroleum's CEO, Chris Metcalf. "We are extremely enthusiastic about continuing our growth strategy with the Baker Ranch properties, located in the prolific West Gomez Field, which is a major target for us for future acquisitions. One of the most attractive aspects of Well 80 is that it has already been partially unplugged which should lower our costs. The result is a risk/reward profile that we believe can create great value for our shareholders."

About Pantera Petroleum

Pantera Petroleum, Inc. is a publicly traded oil and gas exploration company (OTCBB:PTPE)(FRANKFURT:4PP) headquartered in Austin, TX with operations in Midland and Pecos County, TX, and Asuncion, Paraguay. Our mission is to explore and discover new energy fields in North and South America. Our North American assets include Baker Ranch Well 80 and the Block 83 84 Project in the West Gomez Field in Texas. In South America, Pantera has rights to five concessions in northern Paraguay, covering nearly 4 million acres.

Further Information

Shareholders and investors are encouraged to visit Pantera Petroleum's website www.panterapetroleum.com and download the investor summary. Please feel free to call investor relations toll-free at 1-866-511-1147 to receive a full corporate investor's package.

On behalf of the Board of Directors

PANTERA PETROLEUM, INC.

Chris Metcalf, President and CEO

Legal Notice Regarding Forward-Looking Statements

Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

Forward-looking statements in this news release include, among others, that the Company has the further option to acquire additional working interest in Baker Ranch Well 80 up to a 95% working interest and a 71.25% net revenue interest, along with up to 95% working interests in another four wells known as Baker Ranch Sections 74, 77, 78, and 8 for $2.2 million; that Baker Ranch Well 80 has an estimated remaining 13 billion cubic feet of natural gas in proven undeveloped reserves in the Ellenburger formation; that Well 80 has already been partially unplugged which should lower our costs; and that result is a risk/reward profile that we believe can create great value for our shareholders.

Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in Company's periodic filings on Edgar with the US Securities and Exchange Commission.

Cautionary Note to U.S. Investors

The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this news release, such as "prospective resources", "likely recovery factors", "prospective reserves", "prospective resource", "risk", "recoverable oil", "possible resource", "potential reserve" and that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our annual report on Form 10-KSB and quarterly reports on Form 10-QSB available from us or the SEC.

Article Source: http://news.everythingoilandgas.com

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated