Westmont Resources, Inc. (OTCQB: WMNS), announced today that they have completed an agreement that will extend Westmont’s reach and resources with the acquisition of a total of 3,400 acres and 120 existing wells in the Marcellus Shale region in the southwest tier of Pennsylvania and northwest tier of West Virginia. Westmont begins implantation of Phase 1 of it operations plan to increase production to over 3,500 barrels per month by the end of the 2011 calendar year.
Preliminary production on the leaseholds has 11 working wells, of the 120 currently drilled on the properties, producing .6 to .9 barrels of oil per day per well. Total daily production is averaging 7.7 barrels of oil per day from these 11 working wells. April production totaled 231 barrels or $23,331 in gross revenue from production.
Westmont anticipates placing into production an additional 33 wells by the end of May 2011 for a total of 44 working wells by the end of our fiscal year May 31, 2011. We anticipate revenue to increase to over $105,000 per month by the end of May 2011 from the production of these first 44 working wells. Upon completion of the first phase of our production program, Westmont anticipates having 170 of the 212 existing wells in production earning estimated gross revenues of $321,300 per month based on current oil pricing in excess of $90 per barrel.
“Our specialty is applying cutting-edge technology in order to ‘wring additional value from’ long-lived, low risk natural gas and oil properties – To squeeze more oil out of mature basins. These new Pennsylvania and West Virginia assets are an excellent fit with our existing core areas and will expand our portfolio. Phase 2 of our production program will include the implementation of our patented, proprietary technology to increase production by a factor of 6 with anticipated production in excess of 5 barrels a day per well. Our estimated monthly gross revenue would increase from an estimated $321,300 to over $2,295,000 after implantation of our technology on all existing wells,” said Glenn McQuiston, Westmont’s President.
About Westmont Resources
Westmont Resources is an independent natural resource and development company headquartered in Bellevue, Washington, with principal operations in the United States. Westmont’s business model emphasizes the acquisition and operation of existing producing assets, in the oil and gas industry. As new technologies expand both the exploration possibilities and production of oil and gas in the face of ever-rising demand, obtaining peak efficiency and production from existing aging wells becomes increasingly profitable. Westmont Resources is committed to significant growth as it pursues its strategy to combine and consolidate assets and companies in the oil and natural gas production and services sectors. For more information about Westmont Resources Inc, visit the company’s website at www.westmontresources.com
Safe Harbor Statement
This press release contains forward-looking statements regarding Westmont Resources Inc within the meaning of Section 27A of the Securities Act of 1933 as amended, as such, may involve risks and uncertainties. Such statements are based on management’s current expectations and cannot be guaranteed. The forward-looking statements discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors affecting Westmont Resources Inc. Forward-looking statements speak only as of the date on which they are made and Westmont Resources Inc undertakes no obligation to publicly revise any forward-looking statement based on the result of new information, future events, or otherwise.
Marc Peterson – Investment Relations
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Tagged with: (OTCQB: WMNS) • Business • Economy • Employment • Financial • Forward-looking statement • Industry • Jobs • Marcellus Formation • Marcellus Shale • Markets • Oil Drilling • Pennsylvania • PinkSheets • United States • West Virginia • Westmont Resources
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