GILLETTE, Wyo., Dec. 3, 2015 /PRNewswire/ -- NuTech Energy Resources, Inc. (OTC: NERG), a natural gas and oil exploration and development company, is pleased to announce that the Company has received approval by its board of directors, and proceeds to finalize the acquisition of Emerald Operating and Rocky Mountain Exploration Wells, an operation comprised of 74 existing wells, and their underlying lease agreements. Moreover the Company has taken ownership of an additional 2000 wells in that territory, and is in the final stages of obtaining regulatory approval.
The two thousand wells being acquired have been shut in for numerous years, and the equipment has been idle. Once the wells are retrofitted and rehabilitated with any necessary pipeline repair, these properties have the potential of producing 100 MCF per day, per well. At a 5 year average baseline of just in the range of $4 per MCF, this could translate to right in the arena of $288,000,000 in gross sales, with a rewarding potential profit margin in the range of $180,000,000.
The exclusive advantage that NuTech's proprietary patented technology provides, which makes the opportunity particularly advantageous, is the ability to produce natural gas at a much lower price point, enabling the Company to meet demand and prosper successfully, even when the competitor cannot afford to produce. This provides NuTech with the opportunity to become a substantial contender, since the ability to produce gainfully in a down market allows the Company to sell natural gas profitably in every season.
Management believes that within the next 12 to 24 months the current oversupply of natural gas in North American will be reduced substantially, resulting in higher prices. At this point in time the Company speculates that a reasonable NYMEX natural gas price projection, once this oversupply is reduced, could establish itself in the $4.00/MCF range, at which point NuTech would be operating at an exponential profit.
The company acknowledges that not all 2000 wells will produce up to 100 MCF per day, however some of the wells referenced are expected to produce considerably more than 100 MCF. The numbers referenced are not official estimates, but only a forecast of reasonable potential results. Ongoing forecasts of production will not be certified by the board of Directors of NuTech Energy Resources, Inc. until actual production results are analyzed.
"We truly believe that we have a striking advantage in being able to produce natural gas at such a low cost with our proprietary equipment. We expect that these additional 2000 wells are going to give us a solid footprint in the industry," stated Kevin Trizna, Chief Executive Officer, NuTech Energy Resources, Inc.
The initial terms of the acquisition of 2,000 wells have been successfully completed. The transaction will take a reasonable time-frame to complete due to regulatory requirements including posting idle well bonds, renewing any expired leases and approval of the Wyoming Oil and Gas Commission to become an operator within the State as well as approval of the Bureau of Land Management (BLM). Management is motivated and confident that this final process will conclude in a timely manner.
NuTech Energy has also recently announced that the Company has retained the professional services of an accounting and business advisory services firm, and the legal services of Cutler Law Group of Houston, Texas, to collaborate efforts for the successful establishment of a listing on the prestigious NASDAQ Exchange, a goal that the Company intends to achieve by the end of spring 2016.
Emerald Operating currently has 27 of NuTech Energy's state-of-the-art IGOR tools installed on location. Gas from this location is being produced and sold, using the Company's patented, proprietary Natural Gas Production Technology, but no production results are available as of yet. Emerald Operating personnel have, over the past several months, extensively tested, and continue actively running diagnostics in an effort to optimize the production and transportation process. Management is confident that the best strategy has been developed in regards to the installation of the Company's proprietary equipment, as well as the production of coalbed methane.
As recently announced, the Company continues to focus on adding to the current inventory of its coalbed methane wells in the Powder River Basin of Wyoming, and plans to convert those wells into profitable producing assets. The Company has a patented, proprietary technology to produce natural gas without pumping water out of the ground from inside a well. This device reduces overhead from conventional methods of natural gas production by as much as eighty percent (80%).
About NuTech Energy Resources, Inc.: NuTech Energy Resources, Inc. (OTC Markets Symbol: NERG) is a natural gas and oil exploration and development company that has developed a patented technology for the production of coalbed methane (CBM) without the need to pump water. NuTech currently operates wells in the Powder River Basin area of northern Wyoming and has commitments to acquire thousands of additional wells. NuTech Energy Resources, Inc.'s development of proprietary equipment uniquely positions the Company to be able to acquire and profitably operate wells that were previously cost prohibitive. For more information visit: http://www.nutechenr.com/
Safe Harbor: This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.
Contact: Investor and Media
Steffan Dalsgaard, CEO Everest Corporate Advisors, Inc.
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SOURCE NuTech Energy Resources, Inc.