March 23, 2016 - 1:14 AM EDT
Print Email Article Font Down Font Up
Virtus Oil and Gas Announces Execution of Asset Purchase and Sale Agreement of Squaw Canyon Prospect in Paradox Basin

HOUSTON, TX
-- (Marketwired) -- 03/23/16 -- Virtus Oil and Gas Corporation (OTCBB: VOIL) ("Virtus" or "the Company"), through one of its wholly owned subsidiaries, recently completed and executed an Asset Purchase and Sale Agreement with Nathan Oil, LLC dated March 4, 2016 (the "Agreement") to acquire the Squaw Canyon Field's Federal #1-19 and #3-19 wells (the "Wells"). Virtus is receiving an eighty percent (80.0%) net revenue interest (75% working interest) in the oil, gas and other associated minerals produced, saved and marketed from these leases to all depths. Under the terms of the Agreement Virtus is acquiring the Wells in exchange for five million (5MM) shares of Virtus common stock.

The Squaw Canyon Field is located in the Paradox basin in Section 19, T38S R25E East, San Juan County, Utah. The main producing zone in the oil fields is the Ismay. The Ismay is predominantly limestone capped by anhydrite. Two offset wells on 40-acre spacing is strongly recommended to the west and should result in undepleated reservoirs. The reservoir has been respaced to allow for a horizontal well to be drilled. The lateral should be northeast to southwest all in order to interest the fractures.

                                                      
------------------------------------------------------
  Well #       Cumulative Oil        Cumulative Gas   
------------------------------------------------------
   1-19                 46,799.00           279,796.00
------------------------------------------------------
   3-19                 76,928.00           206,397.00
------------------------------------------------------
  Totals              123,727.00           486,193.00 
                                                      

A new Tank battery has recently been installed at the location on March 10, 2015. Virtus has hired a third-party Professional Engineering firm to evaluate the Squaw Canyon reserves. The reserve report indicates that the two wells have a Proven Undeveloped Reserves of just over 265k net boe. Using an average oil price of $40.28 the NET FNOR would be $8.5MM.

Rupert Ireland, CEO of Virtus, said: "This is our first acquisition of 2016 and we are excited to be entering into the Paradox Basin. The infrastructure and proven reserves gives Virtus cash-flow and also future well potentials. The importance of existing gas contracts with gathering lines in the area gives us the advantage of marketing both the oil and natural gas during these lower commodity prices. The proven reserves in place and low Lease Operating costs make this an important viable prospect for Virtus."

Brett A. Murray, COO of Virtus, said: "The current downturn in the industry has forced Virtus to evaluate prospects for both short-term and long-term goals. This producing asset in the Paradox Basin brings cash flow to our shareholders and a portfolio of future wells. The main emphasis for our team in 2016 has been to get into proven and developed areas without taking on debt and using newer technology to improve on the existing production."

About Virtus Oil and Gas Corporation
Virtus Oil and Gas Corp. (VOIL) is a

Houston
-based oil and gas exploration and production company currently focused on producing assets in the
State of Utah
. The Paradox Basin has significant oil and gas producing wells with extensive infrastructure. The Parowan Project, a 55,477+/- Acre prospect targeting the Central Utah Thrust Belt. The prospect is situated near recent
Utah
discoveries, including Wolverine Gas and Oil's Covenant Oil Field, which is consistent with Virtus' strategy to acquire and develop oil and gas resources in proven, onshore basins in
the United States
. Further Reading on Paradox Basin can be found at: http://pubs.usgs.gov/fs/2012/3031/FS12-3031.pdf

Forward-looking Statements
This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in the Company's SEC reports. The company will need to raise additional financing in order to advance its exploration and drilling program. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.

Image Available: http://www.marketwire.com/library/MwGo/2016/3/22/11G088594/Images/image_1-cbf3d1def2f3b00b819d23cbb37a7eb0.jpg
Image Available: http://www.marketwire.com/library/MwGo/2016/3/22/11G088594/Images/image_2-53a4f23dd606b41ab7200febaa733393.jpg
Image Available: http://www.marketwire.com/library/MwGo/2016/3/22/11G088594/Images/image_3-d39b88e1ab32b35bb472cfd53654b488.jpg
Image Available: http://www.marketwire.com/library/MwGo/2016/3/22/11G088594/Images/image_4-8e65ed1754c5af3b8c662e676f94a103.jpg
Image Available: http://www.marketwire.com/library/MwGo/2016/3/22/11G088594/Images/image_5-a08805ff085e9c6ba8431393a1adcb4c.jpg

   
    Contact:Virtus Oil and Gas Corporation1517 San Jacinto StreetHouston, TX 77002IR Phone: (855) 733-VOILEmail contact

Source: Virtus Oil and Gas Corp

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Source: Equities.com News (March 23, 2016 - 1:14 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice