RainChief Acquires 90% Interest in Gulf Jensen Prospect
Apr 19, 2012 09:00:00 (ET)
VANCOUVER, April 19, 2012 /PRNewswire via COMTEX/ -- Commits to joint development with Nueva Oil & Gas
RainChief Energy Inc. [OTCBB: RCFEF] today announced that the company has exercised its option with Nueva Oil & Gas Corporation to acquire a 90% working interest in the Gulf Jensen Prospect, an oil property located in New Mexico's Permian Basin. Under the terms of the option and in accordance with the farmout agreement between the parties dated February 10, 2012, RainChief has paid a total of $110,000 to Nueve Oil & Gas in connection with the option exercise.
The Permian Basin has produced over 20 billion barrels of oil with a financial value that exceeds $2 trillion, based on today's oil prices. The Basin produces 17% of total United States crude oil and represents 66% of Texas' current oil production. Proven reserves are second only to Alaska and New Mexico's portion of the Basin holds three of the 100 largest oil fields in the US.
Calgary-based Nueva Oil & Gas will retain a 10% working interest in the Gulf Jensen property and will manage all exploration and development activities on the Gulf Jensen property. Nueva is controlled by Norman Mackenzie, who is also the founder of C&C Energia [TSX: CZE]. Mr. Mackenzie will directly advise RainChief on all aspects of site geology and project development.
In exercising the option, RainChief CEO Paul Heney stated, "This is an important move for RainChief. We're partnering with Nueva and Norman Mackenzie in what we believe is a very high quality oil property. An extensive engineering review of the open-hole electric logs from the original #1 Jensen strongly supports our plan to drill new offset oil wells. Analysis of the property and comparison with other similar geological structures and hydrocarbon production within this region of the Permian Basin supports our belief that the Gulf Jensen Prospect has very positive development potential."
The Gulf Jensen Prospect includes 2,400 gross acres of oil and gas leases and is located in the New Mexico portion of the Permian Basin, an area covering portions of west-central Texas and southeast New Mexico. In the New Mexico region of the Basin there are currently 52,560 producing oil and gas wells and 65 active rigs in operation.
The neighboring Peterson oil field has recorded well production rates to 492 barrels of oil a day with 193 barrels of formation water from the reef oil trap. Per well oil recoveries range up to 230,000 barrels of oil with 1 billion cubic feet of natural gas. Analysis of the Prospect and comparison with the Peterson oil field indicates that the Gulf Jensen Prospect could contain significant levels of oil and natural gas equivalent.
RainChief Energy is actively engaged in identifying, financing & developing oil & gas energy resource properties in North America, including the development of the Gulf Jensen Oil Prospect in New Mexico. The company continues to review additional resource properties that combine positive elements of short-term exploration & development costs with high potential for long-term success & financial return.
Rainchief Energy currently has the following share capitalization as of April 19, 2012:
Issued and Outstanding: 36,867,241
Warrants: 4,885,000
Fully Diluted: 41,752,242
Held in DTCC: 12,050,515
Additional information can be found at: www.rainchief.com
Nueva Oil & Gas is headed by well-know Canadian oilman, Norman Mackenzie, who is also Founder and Director of C&C Energia. C&C is a publicly traded, independent oil and gas company that trades on the Toronto Stock Exchange [TSX: CZE]. The company's operations are in Colombia, South America with offices in Bogota, Colombia and Calgary. C&C currently operates 100% of its oil production and holds interests in eight blocks in Colombia totaling 647,500 acres [559,000 net acres].
Additional information can be found at: www.ccenergialtd.com
