Corporate Update - North American Oil and Gas Corporation (the “Company” or
“NAMG”) is pleased to provide the following Corporate Update
VENTURA, Calif. -- July 18, 2013
North American Oil and Gas Corporation:
North American Oil and Gas Corporation (the “Company” or “NAMG”) has completed
the strategic review of its greater Tejon Area encompassing 3,429 gross acres
(2,946 net acres). The Company has incorporated results from its first well
(Pass Exploration 77-20) and the newly acquired 37m^2 of 3D seismic following
an extensive internal review including the assistance of leading industry
consultants in the San Joaquin Basin.
The strategic review has upgraded the prospectivity of the Company’s Tejon
acreage. The new portfolio comprises of 14 low risk to moderate risk high
impact appraisal / exploration prospects targeting light oil with P50/P10^1
resource potential of 24/81mmboe gross, all located in the prolific southern
San Joaquin Basin California. This is a significant upgrade to our previous
estimates of 4 prospects targeting P50/P10 resource potential of 20/65mmboe
Potential Target Depth Unrisked potential (mmboe)
Prospects Reservoir P50 P10
2 Transition Zone Shallow 0.8 2.5
2 Reserve Sand Shallow 0.3 2.5
3 Olcese Sand Shallow 2.3 8.8
4 JV Sand Shallow 5.6 17.8
3 Veddar/Eocene Deep 15.2 49.5
Total (mmboe) 24.2 81.1
Bob Rosenthal, President & CEO commented, “the new interpretation of the 3D
seismic data and review of over 600 wells in the Tejon area upgraded the
prospectivity of our acreage. Importantly we have identified multiple
opportunities both shallow and deep, which reduce the risk profile and
demonstrate the potential that exists within our acreage. The company plans to
pursue its portfolio of 14 prospects targeting upside of 81mmboe gross in the
Project Summary – Tejon Area
The Tejon Area project is located about 20 miles south of Bakersfield,
California, in the southernmost part of the San Joaquin Valley.
NAMG’s Tejon Ranch Extension (346 net acres) and Tejon Ranch Main Footwall
(2,600 net acres) land positions lie between the North Tejon Field which
produced 60 million barrels of oil equivalent (mmboe) and the Tejon Field
which produced 40 mmboe. Importantly NAMG is exploring for hydrocarbons in a
proven hydrocarbon province and targeting the same productive sands (Veddar
and JV) that are currently producing in the North Tejon and Tejon fields.
Furthermore, approximately 640 gross acres are in the designated field
boundaries of North Tejon and Tejon Fields which provide an easier permitting
The area is an active hydrocarbon province demonstrated by the presence of the
Tejon and Tejon North fields. Furthermore, numerous oil companies are present,
actively pursuing in field development utilizing vertical and horizontal
wells. Coupled with an extensive infrastructure network and end user markets
located nearby, (e.g. Los Angeles refinery market 60 miles south and the Kern
Oil Refinery 30 miles north), which augurs well for converting a discovery
into near term revenue.
Tejon Ranch Extension – NAMG operator; 75% working interest; and gross 546 and
Net 246 acres
NAMG has identified 6 prospects targeting multiple reservoirs, namely the
Vedder Oil Pool, Santa Margarita Sands, Olcese Pool, Eocene Sands, Reserve
Sands, Monterey Sands, and Steven Sands. The reservoirs range in depths from
1,000 feet to 9,000 feet and the prospects are targeting gross unrisked
potential P50/P10 of 1.4/7.3 mmboe. The prospects have been seismically
defined and/or have well control data that show hydrocarbons are present. The
wells are vertically drilled and typically cost between $0.5mm to $2mm subject
to depth. NAMG expects initial production rates to vary and estimated ultimate
recovery (EUR’s) is expected in the range of 50,000 BOE to over 200,000 BOE.
Subject to success the company intends to drill horizontal wells to increase
production rates and EUR’s which it believes would offset the higher well
costs associated with horizontal drilling.
Tejon Ranch Main Footwall^2 – NAMG 21.25% working interest; and gross 2,874
and net 2,600 acres
NAMAG has identified 8 prospects targeting multiple reservoirs, namely the
Vedder, Olcese, Eocene, and JV Sands. The reservoirs range in depths from
10,000 feet to 13,000 feet and the prospects are targeting gross unrisked
potential P50/P10 of 22.8/73.8mmboe.
A well is planned mid-2014, total depth of the well is 13,000 feet and the
primary objectives are the Veddar and Eocene sands at 10,000 - 13000 feet
measured depth. It is a deep prospect targeting light oil (32-35º API) and an
estimated 15 - 50mmboe gross potential based on NAMG estimates and has
geological similarities to the large 175 - 250 mmboe Occidental Petroleum
discovery made in 2009, which is also a San Joaquin Basin footwall trap^3.
^1 Society of Petroleum Engineers definition: Range of uncertainty is
represented by a probability distribution estimate. P50, there should be at
least a 50% probability (P50) that the quantities actually recovered will
equal or exceed the best estimate. P10, there should be at least a 10%
probability (P10) that the quantities actually recovered will equal or exceed
the high estimate.
^2 Solimar is Operator of the Tejon Ranch Footwall Main Area, except for
depths above 7,428 feet, wherein Lani (NAMG) assumes all rights and duties of
^3 Occidental Petroleum Corporation news release dated July 22, 2009.
About North American Oil & Gas Corporation (OTCBB - NAMG)
North American Oil & Gas Corporation (“NAMG”) is a publicly listed (OTCBB -
NAMG) oil and gas Company. The Company is focused on the prolific San Joaquin
Basin, onshore California, with existing foundation assets targeting
exploration and exploitation of high impact oil and gas projects located near
infrastructure and existing discoveries.
As of June 30, 2013, NAMG owned interests in approximately 8,243 gross acres
(4,944 net acres) in the southern San Joaquin Basin: 1) White Wolf 4,823 gross
(2,098 net) acres; 2) Tejon Main 2,874 gross (2,600 net) acres; and 3) Tejon
Extension 546 gross (346 net) acres.
This press release contains “forward-looking information” that is based on the
Company’s current expectations, estimates, forecasts and projections. This
forward-looking information includes, among other things, statements with
respect to the Company’s plans, outlook, business strategy and exploration and
development of the Company’s properties. The words “may”, “would”, “could”,
“should”, “will”, “likely”, “expect”, “anticipate”, “intend”, “estimate”,
“plan”, “forecast”, “project” and “believe” or other similar words and phrases
are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company’s actual results,
level of activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking information. Such factors
include, but are not limited to: the ability to raise sufficient capital to
fund exploration and development; the quantity of and future net revenues from
the Company’s reserves; oil and natural gas production levels; commodity
prices, foreign currency exchange rates and interest rates; capital
expenditure programs and other expenditures; supply and demand for oil and
natural gas; schedules and timing of certain projects and the Company’s
strategy for growth; competitive conditions; the Company’s future operating
and financial results; and treatment under governmental and other regulatory
regimes and tax, environmental and other laws.
This list is not exhaustive of the factors that may affect our forward-looking
information. These and other factors should be considered carefully and
readers should not place undue reliance on such forward-looking information.
The Company disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.
Photos/Multimedia Gallery Available:
North American Oil and Gas Corporation
Robert (Bob) Rosenthal, +1 805-643-0385
Chairman, President and CEO
fax: +1 805-643-0211
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