BRIDGEWATER, NJ, Sept. 1 /PRNewswire-FirstCall/ -- PrimeGen Energy Corp. (OTC Pink Sheets: PGNE; "PrimeGen" or the "Company") released new production figures as of August 31, 2009 resulting from the recent completion production of three new wells in the Timan-Pechora field. The Company achieved total average daily production of 3,480 bpd during the month. The lowest production was 2,050 bpd on August 2, 2009 and the highest production was 3,660 bpd on August 27, 2009.
Company President, Robert Charlton, said, "We are pleased with the production results on Kochmesskoye # 1, 2 and 3. We expect that the Company will receive payback on these wells within the current fiscal year given the prevailing world price for oil. The Timan-Pechora fields are poised to provide substantial revenue to the Company furthering our expectation that the major portion of capital and operating expenses required to continue effective exploration of the Timan-Pechora project will be derived from our internal operations."
As previously announced on August 24, 2009 the Company has completed drilling of well Kochmesskoye # 4 and expects to announce productive oil flow rates later this week. As part of the accelerated drilling program, a fifth well is scheduled for immediate drilling shortly after the results of the fourth well are announced. The 2009-10 development program calls for the drilling of a minimum of 30 wells to develop the field. When fully developed, the 30 wells could yield a daily production rate at Timan-Pechora of 35,000 barrels per day.
Using current pricing for Timan-Pechora crude oil, PrimeGen has now projected that the 3 wells have generated over $10 million in revenue or $82.5 million on an annual basis. Currently, oil at Timan-Pechora has been priced at over $65.00 per barrel.
About PrimeGen Energy Corporation
PrimeGen Energy Corp. is an oil and gas exploration Company whose primary focus is exploring and developing high potential unconventional resource plays. The Company's strategy and development assets are focused on a prolific and historic oil and natural gas resource play in Krasnoarmeiskome District, Saratovskoi Oblast in Russia. The Company is headquartered in Bridgewater, NJ and has offices in Moscow, Russia. PrimeGen Energy plans to use its comparative advantages in certain geographic regions to expand rapidly through strategic acquisitions of small oil and gas producing entities and production assets including wells, properties, operating equipment, and pipelines.
Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.
PrimeGen Energy Corp.
CONTACT: Robert Charlton, President, PrimeGen Energy Corp.,
info@primegenenergycorp.com
