HOUSTON, TX--(Marketwired - September 08, 2015) - America Resources Exploration, Inc. (AREN) ("America Resources" or "the Company"), today announced that it has received the results of a reserves estimate study for its newly acquired Harris leases in Texas.
Reserve Calculations and Methodology
Volumetric calculations for Original-Oil-In-Place (OOIP) and reserves were performed for reservoirs present in the Harris A, B and C Leases (722 total acres) located in Callahan County, Texas. This method is widely accepted within the petroleum industry, and uses sound engineering principles and practices. The geologic and rock properties were provided by Seabourn Oil Company. These properties were determined by reviewing numerous existing wellbores in the immediate area.
Harris Leases A, B and C
Three reservoirs were evaluated: Strawn, Cross Plains and Cisco. A High Case and a Low Case were evaluated for each reservoir. The difference in the two cases is a change in porosity value. The reserves values are shown immediately below are for all of the productive acreage:
| Lease |
High Case Reserves, stk bbls |
Low Case Reserves, stk bbls |
| Harris A |
447,308 |
255,604 |
| Harris B |
525,736 |
300,420 |
| Harris C |
1,030,895 |
589,083 |
| Total Project Reserves |
2,003,939 |
1,145,107 |
Reserve Estimator's Qualifications
Mr. Randy Chillion has been a Petroleum Engineer for 36 years. Was employed by Amoco/BP for 34 years (Amoco and BP merged in 1999). One of his functions during that time was as a "Certified Reserve Estimator" within BP, meaning that BP deemed that he had sufficient training, experience and expertise to use the reserve estimates he calculated as their official reserves estimates to reporting agencies such as the SEC. He has also worked on numerous field development projects which entailed calculating reserves and determining drilling locations.
"We are very pleased with the results from our initial study into the Harris leases and we look forward to putting a plan together to maximize the potential of this latest acquisition" stated Mr. Huang Yu, CEO.
About American Resources Exploration, Inc.
America Resources Exploration, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company's growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information investors can visit www.america-resources.com
Forward-Looking Statements
This press release and the materials referenced herein include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give American Resources Exploration's current expectations or forecasts of future events. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management's expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of American Resources Exploration to fund the costs of new wells and to obtain financing from other sources for continued development; the costs of operations; delays, and any other difficulties related to producing oil; the ability of American Resources Exploration to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; American Resources Exploration's ability to market and sell produced minerals; the 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 are set forth in our Form 10-K and the registrations statement for any offerings as filed with the SEC. American Resources Exploration undertakes 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. American Resources Exploration's production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although American Resources believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.