EX-99
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ex99-pressrelease.htm
PRESS RELEASE DATED NOVEMBER 8, 2004
Press
Release
Source:
Petrol Oil and Gas Inc.
Petrol
Oil & Gas Acquires Producing Coal Bed Methane Gas Properties
Monday
November 8, 9:02 am ET
Prolific
Thayer Gas Field To Add Over 3 Million cubic feet of Daily Production; Field
Expected to Generate Gross Revenues of about $9.6 Million at Current Gas Prices
During 2005
LAS
VEGAS--(BUSINESS WIRE)--Nov. 8, 2004-- Petrol Oil and Gas Inc. (OTCBB: POIG -
News) announced today that it has completed the acquisition of the leasehold
rights to approximately 10,000 acres and 71 producing gas wells in the Thayer
Gas Field, in Southeast Kansas. The purchase price for the property was
$10,000,000, all of which the company paid in cash at closing. This producing
property, Petrol-Neodesa, is in a mature and highly prolific Coal Bed Methane (CBM)
gas producing area located in Wilson and Neosho counties, Kansas and currently
produces about 3,000 Mcf per day of gas, based upon production from the 71
wells.
Based
upon current gas prices and production levels on the property, Petrol-Neodesa is
expected to generate gross revenues of about $9.6 million for Petrol in 2005.
This would result in $0.15 operating cash flow per share based on the number of
shares issued and outstanding. In addition Petrol-Neodesa has room for an
additional 100 drillable locations and thus the company plans to increase
projected revenues through a sustained drilling program in 2005 in order to
expand production. Net cash flow after production, operational, interest and
other expenses, from Petrol-Neodesa is expected to be roughly $3.5 Million in
2005.
"We
are very pleased that Petrol was able to acquire such an attractive producing
gas property at about $1.14 per Mcf of proved net reserves, particularly given
the robust energy market", said Paul Branagan, Petrol's President and Chief
Executive Officer. "We believe that this acquisition dramatically changes
the current and future prospects for Petrol Oil and Gas. Producing 3,000,000
cubic feet of gas from Petrol-Neodesa greatly diversifies our revenue streams
and compliments our ongoing CBM drilling program just to the north in our Coal
Creek Project. With multiple CBM project areas under production we expect to be
a much better balanced company and able to provide linkage between all our
Cherokee basin CBM properties. In addition cash flow from our Petrol-Neodesa and
Coal Creek properties will allow us to continue to invest in our drilling
programs, increase production and provide us the opportunity to selectively make
additional acquisitions without relying upon external financing".
Forward-Looking
Statement: The statements in this press release regarding any implied or
perceived benefits from the acquisition of the Thayer gas field properties,
plans to drill additional CBM gas wells, anticipated revenues, the acquisition
of additional oil or gas leases, maintaining mineral lease rights, and any other
effects resulting from any of the above are forward-looking statements. Such
statements involve risks and uncertainties, including, but not limited to, the
continued production of gas at historical rates, costs of operations, delays,
and any other difficulties related to producing minerals such as oil or gas,
continued maintenance of the oil field and properties, price of oil or gas,
marketing and sales of produced minerals, risks and effects of legal and
administrative proceedings and governmental regulation, future financial and
operational results, competition, general economic conditions, and the ability
to manage and continue growth.
Should
one or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual outcomes may vary materially from those
indicated. Important factors that could cause actual results to differ
materially from the forward-looking statements we make in this news release
include market conditions and those set forth in reports or documents we file
from time to time with the SEC. We undertake no obligation to revise or update
such statements to reflect current events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.
Contact:
Investor
Information:
Petrol
Oil and Gas Inc.
702-454-7318
www.petroloilandgas.com
or
CEOcast,
Inc. for Petrol Oil and Gas
Ed
Lewis, 212-732-4300x225
Source:
Petrol Oil and Gas Inc.

EX - 99 2 ex99 - pressrelease . htm PRESS RELEASE DATED NOVEMBER 8 , 2004 Press Release Source : Petrol Oil and Gas Inc . Petrol Oil & Gas Acquires Producing Coal Bed Methane Gas Properties Monday November 8 , 9 : 02 am ET Prolific Thayer Gas Field To Add Over 3 Million cubic feet of Daily Production ; Field Expected to Generate Gross Revenues of about $ 9.6 Million at Current Gas Prices During 2005 LAS VEGAS -- ( BUSINESS WIRE ) -- Nov. 8 , 2004 -- Petrol Oil and Gas Inc . ( OTCBB : POIG - News ) announced today that it has completed the acquisition of the leasehold rights to approximately 10,000 acres and 71 producing gas wells in the Thayer Gas Field , in Southeast Kansas . The purchase price for the property was $ 10,000,000 , all of which the company paid in cash at closing . This producing property , Petrol - Neodesa , is in a mature and highly prolific Coal Bed Methane ( CBM ) gas producing area located in Wilson and Neosho counties , Kansas and currently produces about 3,000 Mcf per day of gas , based upon production from the 71 wells . Based upon current gas prices and production levels on the property , Petrol - Neodesa is expected to generate gross revenues of about $ 9.6 million for Petrol in 2005 . This would result in $ 0.15 operating cash flow per share based on the number of shares issued and outstanding . In addition Petrol - Neodesa has room for an additional 100 drillable locations and thus the company plans to increase projected revenues through a sustained drilling program in 2005 in order to expand production . Net cash flow after production , operational , interest and other expenses , from Petrol - Neodesa is expected to be roughly $ 3.5 Million in 2005 . " We are very pleased that Petrol was able to acquire such an attractive producing gas property at about $ 1.14 per Mcf of proved net reserves , particularly given the robust energy market " , said Paul Branagan , Petrol 's President and Chief Executive Officer . " We believe that this acquisition dramatically changes the current and future prospects for Petrol Oil and Gas . Producing 3,000,000 cubic feet of gas from Petrol - Neodesa greatly diversifies our revenue streams and compliments our ongoing CBM drilling program just to the north in our Coal Creek Project . With multiple CBM project areas under production we expect to be a much better balanced company and able to provide linkage between all our Cherokee basin CBM properties . In addition cash flow from our Petrol - Neodesa and Coal Creek properties will allow us to continue to invest in our drilling programs , increase production and provide us the opportunity to selectively make additional acquisitions without relying upon external financing " . Forward - Looking Statement : The statements in this press release regarding any implied or perceived benefits from the acquisition of the Thayer gas field properties , plans to drill additional CBM gas wells , anticipated revenues , the acquisition of additional oil or gas leases , maintaining mineral lease rights , and any other effects resulting from any of the above are forward - looking statements . Such statements involve risks and uncertainties , including , but not limited to , the continued production of gas at historical rates , costs of operations , delays , and any other difficulties related to producing minerals such as oil or gas , continued maintenance of the oil field and properties , price of oil or gas , marketing and sales of produced minerals , risks and effects of legal and administrative proceedings and governmental regulation , future financial and operational results , competition , general economic conditions , and the ability to manage and continue growth . Should one or more of these risks or uncertainties materialize , or should underlying assumptions prove incorrect , actual outcomes may vary materially from those indicated . Important factors that could cause actual results to differ materially from the forward - looking statements we make in this news release include market conditions and those set forth in reports or documents we file from time to time with the SEC . We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events . Contact : Investor Information : Petrol Oil and Gas Inc . 702 - 454 - 7318 www.petroloilandgas.com or CEOcast , Inc . for Petrol Oil and Gas Ed Lewis , 212 - 732 - 4300x225 Source : Petrol Oil and Gas Inc .