LHPT News
Lighthouse Update on Operations
2012-09-04 10:04 ET - News Release
LEVELAND, Texas, Sept. 4, 2012 /PRNewswire/ -- The Management of Lighthouse Petroleum, Inc. (OTC PINK: LHPT), is pleased to provide the following update to its shareholders:
Our current plans for operations are as follows:
1. Stick to the original plan of focusing on reworked wells and keeping the barrier to entry low so we can develop cash flow with the least amount of dilution possible.
The current pipeline of projects are in conjunction with HCE Operating. The projects we are going after are as follows:
A. The JY 1 Well to be recompleted in the month of September which is to cost Lighthouse $35,000 for 100% WI with 75% NRI. It is estimated that the well should produce about 3 to 5 barrels a day with a gas cut. We are going to pay 15% NRI and expenses to the operator. The estimated ROI on this project is to be less than 12 months. The objective is for the JY well and the Perry well to produce enough revenue for our operating subsidiary to become profitable. This gross profit will increase with payments from the non-operating interest we own. The importance of this is that our 100% WI projects should now make the operating subsidiary profitable with additional income coming from our non-operating based interest. This does not mean that overall Lighthouse Petroleum is profitable because the parent company has regulatory costs and past debt but Management believes this will assist in establishing a foundation for profitability in the subsidiary to start saving capital for the parent.
B. Project on the M. M. Cobb #2, #4, #6 the expected cost of this project will be about $75,000 and entail secondary recovery. The estimated oil recovery from this project could produce up to a maximum of 20 BOE a day. The M.M. Cobb project would also include our receipt of an injection permit from the TRC. Management anticipates this project to be set for October/November.
C. Management intents to focus on closing and financing the Reames/Masterson project and believes this project is an asset builder. The engineering report states there are in excess of 450,000 barrels of recoverable oil. Based on the economics in the contract, this project would put $13,500,000 of assets on the books if Lighthouse is able to obtain and finance the project. Management invites shareholders to read the 63 page report Lighthouse disclosed on the Over The Counter Pinksheets Market on this project.
D. Mina Travis- This is the sister well to the LUCY LEE. Lighthouse's Management would like to buy an non-operating interest in this well because of the potential of owning part of the estimated 3,000,000 barrels of recoverable oil. Pricing on this project has kept Lighthouse out of the game so far but Management believes we might have the potential to get a small piece moving forward.
E. Expansion of the Perry Project - Sometime in 2013 Lighthouse will look to expand the Perry Project.
2. New Partnerships
A. Lighthouse is looking for new working partners in the Area of 7B. There are a couple of operators that are retiring and looking to be bought out which could expand our opportunities. The main hold up in pursuing these deals right now is the current equity price and position of our capital is too risky for some people to accept in return for ownership of their company.
B. Lighthouse has made offers to a couple former employees to help the company pursue new projects meeting our investment profile and discussions seem to be going ok. During the month of September we receive more information and determine if anything can be done.
C. Lighthouse has reviewed some projects in Oklahoma but haven't pursue them because either the economics or the parties involved weren't conducive to Lighthouse Petroleum.
D. Lighthouse invested in a software for drilling information for North America that is assisting Management in its selection and structuring of potential transactions. A goal of Management is to expand into Canada and will rely on the software to help guide Management identify and seek out potential projects.
3. Management has contacted DTCC regarding removing the current stock chill. Management has no idea how long this will take and we are waiting for the requested material back from the DTCC.
4. Filings and Financials. Lighthouse is late on its quarter 2 reporting because it is working on its financial statements. Management has contacted the former accountants for Lighthouse and is trying to build a better accounting process to get reporting requirements done in a more timely fashion. The new structure should enable Lighthouse to become current with OTC Markets Pinks Sheets and Management hopes Lighthouse can potentially become a fully SEC reporting company through its filing of a registration statement within the next several months.
5. Management changes and additional Board Members.
Lighthouse is looking to hire a full executive team that is well established in the oil and gas industry during the 4th quarter of 2012. We have also began looking for additional board members to direct the company. We are looking for a CEO, CFO and VP of Development and 2 outside directors.
About Lighthouse Petroleum, Inc.
Lighthouse Petroleum, Inc. is in the initial development as a junior oil and gas company. Lighthouse's initial focus will be on acquiring abandoned wells and land leases believed to still have sustainable development opportunities. Lighthouse believes the use of modern technology will enable the company to reduce it risk in the initial phase of development and open up new opportunities. Lighthouse plans to create a base cash flow from reentering these wells and establish the network to acquire additional land asset in our targeted areas. The management's focus is on acquiring and developing assets located in the Permian Basin and Arch-Fort Worth Basin. Lighthouse is a growth orientated junior Oil & Gas Company that trades on the OTC markets under the symbol "LHPT".
