Thursday, June 10, 2010

Aztec Reports Positive Natural Gas Drilling News

HOUSTON, Jun 9, 2010 (GlobeNewswire via COMTEX) -- Aztec Oil & Gas, Inc. (Pink Sheets:AZGS) announced its entrance into the Navarro County area several months ago, expanding its efforts of drilling for shallow oil. This area is a proven oil field with many locations that have never been drilled based on older production holding acreage for 30-50 years. "We have been fortunate in working with local, long time land owners to get leases with very opportune drilling locations," stated Aztec President, Waylan Johnson.
Aztec has drilled six consecutive successful wells through the prolific Nacatoch formation down to one of the targeted lower formations. "Our whole theory of finding more shallow oil where shallow oil has previously been found, has worked yet again," continued Johnson.
While Aztec has seen success with natural completions in one of the lower Navarro County formations; its use of state of the art fracturing and completion techniques has helped Aztec achieve initial daily production rates which flow tests confirm are in excess of Aztec's minimum target rates. Such wells fall well within the parameters of the financial model utilized for Aztec's Partnerships.
"Aztec's model for raising money in the sponsored drilling program arena through FINRA registered Broker Dealers calls for a solid, low risk, consistent plan. Aztec has proven its ability to fully develop this model in many areas throughout Texas, with Navarro County now being one of them. Drilling for oil and gas can be highly attractive, but is always risky. Our objective at Aztec is to achieve reasonable and attractive returns without pushing the risk envelope. As stated, areas like Navarro County, where oil was first discovered in the state of Texas, are prime areas for Aztec," further stated Johnson.
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 as exemplified by its direct corporate participation in two productive Deep Lake wells in Cameron Parish, Louisiana ranging from 13,600 feet to 14,300 feet in depth; versus its shallow, Texas, low risk, development wells for its drilling/production partnerships. Those programs/partnerships are placed by FINRA registered Broker Dealers and Registered Investment Advisors with accredited investor partners and are directed primarily at oil.
Aztec entered the sponsored drilling program industry in 2006. Over the next two and one half years, it intentionally restricted itself to only three small, very limited Appalachian drilling partnerships in order to 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 for oil and gas, primarily in Texas.
Since 2008, Aztec has focused most of its drilling on oil wells in Texas. In addition to its initial three small Appalachian drilling partnerships mentioned above, Aztec has sponsored and closed five other drilling/production partnerships (all of the latter focused on drilling 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 turnkey drilling contractor and operator for such partnerships. Through its own contributions, Aztec owns a 30% interest in all of its drilling/production partnerships. In general clarification of its activities, in addition to direct corporate participations, Aztec sponsors low risk, development drilling/production programs which include significant tax benefits, all of which are sold through FINRA Registered Broker Dealers and Registered Investment Advisors to Accredited Investors. Aztec's sponsored drilling/production programs focus primarily on shallow oil/gas drilling, are very unique, and also incorporate a sophisticated Exit Strategy for investors.
For more information on Aztec Oil & Gas, Inc. please visit
This release/announcement is neither an offer to sell nor a solicitation of an offer to buy securities or participations. 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/document, the 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, the 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, the Memorandum, or the Aztec Website might not occur. Accordingly, investors should not rely upon forward-looking statements as a prediction of actual results. Also, Aztec Oil & Gas, Inc., its officers, principals, employees and consultants, and the other parties and partners involved in any properties and programs have conflicts of interest; also the price received for the oil and natural gas produced from any properties may be less than quoted NYMEX prices at any given time. 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.
This news release was distributed by GlobeNewswire,
SOURCE: Aztec Oil & Gas, Inc.
CONTACT:  Phoenix IR Associates
Investor Relations
Tony Drake
(281) 579-1602

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