Operations Press Release
Platinum Energy Resources, Inc. Provides Operations Update
Inc.
("Platinum Energy") (PGRIU.OB) (PGRI.OB) (PGRIW.OB), today announced
updated operational metrics and corporate initiatives for the period ended June 30, 2008.
Platinum’s
net daily production averaged 1,240 BOEPD (Barrels of oil equivalent per
day) during June, 2008. This represents a 27% increase in
production volumes when
compared to the average daily production for the first
quarter of 2008. Production
increases were primarily attributable to new drill activity,
in addition to three key
workovers.
Robert
L. Kovar, Chief Operating Officer of Platinum Energy
stated, “We are committed
to building an outstanding organization with the addition of
several key personnel
including: Kevin Neeley, Vice President – Exploitation; Dean Mathiews, Operations
Manager;
and
Environmental. These key leaders are intensifying the focus
on our growth plan and
prioritizing our opportunities to assist in achieving our
goal of 2,000 BOEPD by the end
of 2008.”
“We
are also in the final stages of our search for a CFO and we expect to announce
an
appointment in the near future,” added Tim Culp, Platinum
Energy’s Chairman of the
Board. “Our new leaders are integrating well with our
existing staff, and their
enthusiasm is contagious. Our current personnel are excited
about the renewed focus on
growth and the expansion of our capital program.”
Commenting
on his initial assessment of Platinum Energy’s opportunities, Neeley said,
“We
have an excellent property base and our current focus is to prioritize our
capital
projects. We have already begun a pilot upgrade to our waterflood in the Ira Unit in
Scurry
County,
significantly increase production by the first quarter of
2009. We have also completed a
3D
seismic survey in
evaluated, we plan to drill several Barnett Shale horizontal
wells in the fourth quarter. If
successful, these wells will be the initial phase of an
expanded drilling program on this
acreage in 2009.”
“We
successfully re-entered an idle well and re-established production in the
Wilcox
interval,” added Jim Dorman, Senior VP of Geology,
commenting on the Tomball field.
“The
well is currently producing approximately 600 MCFD before stimulation from an
interval that had been abandoned over 50 years ago. We plan
to fracture stimulate the
well to clean up skin damage that occurred when the well was
initially drilled in the
1950’s
with the obvious goal of increasing productivity. We have plans to re-complete
another well in the Tomball Field to re-establish production
from a similar abandoned
Wilcox zone. If successful, we may expand development of the
Wilcox formation within
the field.”
Barry
Kostiner, Chief Executive Officer of Platinum added, “Our
focus in the second
quarter has been on strengthening our organization and
integrating the Maverick
Engineering, Inc. acquisition. We have been able to leverage
synergies with Maverick to
improve production and cash flow. With the additional
resources now available to us, we
expect to deliver improved results over the increases we
have already seen in the second
quarter. We are extremely excited about the momentum that we
are beginning to build.”
About
Platinum Energy
Platinum,
based in
that has approximately 37,000 acres under lease in
relatively long-lived fields with wellestablished
production histories and is currently engaged in drilling,
developing and
exploiting these properties to provide long-term growth in
stockholder value. Platinum's
strategy calls for the use of hedge financing to maximize
profit and reduce risk resulting
from volatile energy markets.
Forward-Looking Statements
This
press release contains forward-looking statements within the meaning of the
safe
harbor provisions of the Private Securities Litigation
Reform Act of 1995. In some cases,
forward-looking statements can be identified by words such
as "believe," "expect,"
"anticipate," "plan," "potential,"
"continue," "intend" or similar expressions. Forward-looking
statements also include the assumptions underlying or relating to any of the
foregoing statements. Such forward-looking statements are
based upon current
expectations and beliefs and are subject to a number of
factors and uncertainties that
could cause actual results to differ materially from those
described in the forward-looking
statements. The forward-looking statements contained in this
press release may include
statements about future financial and operating results.
These statements are not
guarantees of future performance, involve certain risks,
uncertainties and assumptions
that are difficult to predict, and are based upon
assumptions as to future events that may
not prove accurate. Therefore, actual outcomes and results
may differ materially from
what is expressed herein. In any forward-looking statement
in which Platinum expresses
an expectation or belief as to future results, such
expectation or belief is expressed in
good faith and believed to have a reasonable basis, but
there can be no assurance that the
statement or expectation or belief will result or be
achieved or accomplished. All
forward-looking statements included in this press release
are based on information
available to Platinum on the date hereof. The following
factors, among others, could
cause actual results to differ from those set forth in the
forward-looking statements:
volatility of oil and gas prices, the need to develop and
replace reserves, the substantial
capital expenditures required to fund operations,
exploration risks, uncertainties about
estimates of reserves, competition, government regulation, costs
and results of drilling
new projects, and mechanical and other inherent risks
associated with oil and gas
production.; as well as other relevant risks detailed in
Platinum's filings with the
Securities and Exchange Commission. Platinum does not assume
any obligation to update
the information contained in this press release.
Contact:
Thomas J. Rozycki, Jr.
CJP Communications for
Platinum Energy Resources, Inc.
Public & Investor Relations
212-279-3115 x208
trozycki@cjpcom.com