May 18, 2016 - 2:03 PM EDT
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VII Cities Energy Project Defies Today's Oil & Gas Industry Trends

Hybrid Upstream/Midstream Project Breathes New Life into Old Oilfield

HOUSTON, May 18, 2016 /PRNewswire/ -- VII Cities Energy, LLC has announced the development of a new energy project in Jack County in North Texas that bucks current trends which have shut down or slowed much of the traditional oil and gas activity in the U.S.  While an investment in a "Greenfield" Midstream start-up project may be deemed risky in today's volatile markets, VII Cities "blending" of a new Midstream project with Upstream oil production makes what might be separate, marginal projects into one with outstanding returns.

"Our new development is anchored by a hydrocarbon and natural gas storage lease and combines the Midstream aspects of natural gas storage and processing of natural gas liquids (NGL's) with oil production from the Cary-Mag oilfield which was abandoned in 1960 with significant amounts of recoverable oil still in place," said Lowell C. Thronson, P.E., VII Cities Managing Director.  "A lot of potential investors who recently looked at this hybrid concept have come away saying: 'This is a no brainer.'  We agree and the project is ready to go."

Potential gas storage customers who want a high-deliverability, multi-cycle (HDMC) working gas storage facility will be invited to participate in an upcoming, non-binding "Open Season" to determine their level of interest.  As much as 5 billion cubic feet of working gas will be available with a variety of gas storage services.  Complete details on the Open Season, storage injection and withdrawal rates and capacities along with future expansion planning can be found on the VII Cities website:  www.sevencitiesenergy.com.  Following regulatory approvals, the targeted in-service date for gas storage operations is July, 2018.

The multiple revenue streams from natural gas storage and NGL production from the rich gas in the reservoir is supplemented by the production of crude oil as a result of re-pressurizing the reservoir is increased due to gas injection operations.  Abandoned oil wells will be re-entered and converted to gas injection and production.  Some estimates put the amount of recoverable oil as high as 4 million barrels.

"With these combined income streams and simultaneous operations," Thronson explains, "our all-in cost to lift a barrel of liquid hydrocarbons and maintain the storage operation is about $15 a barrel.  As we said, it's a no brainer."

VII Cities Energy, LLC is the Houston-based operator of record for the Cary-Mag Field.  TECorp International, PLLC is an engineering / consulting company located in West Houston with decades of experience in Upstream and Midstream oil and gas projects both domestically and internationally.  More information on the companies, their capabilities and contact information can be found at: 

VII Cities Energy:  www.sevencitiesenergy.com

TECorp International:  www.tecorpinternational.com

Media Contact:

Ed McIntosh


TECorp International


[email protected]


Cell:  713-208-5076


Direct:  281-760-1028

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/vii-cities-energy-project-defies-todays-oil--gas-industry-trends-300271021.html

SOURCE VII Cities Energy, LLC


Source: PR Newswire (May 18, 2016 - 2:03 PM EDT)

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