Bonanza Oil & Gas Announces Westerly Exploration Strategic Alliance
Bonanza Oil and Gas, Inc. (OTCBB:BGOI), a Nevada Corporation, is pleased to announce the strategic alliance between Bonanza Oil and Gas, Inc. and Westerly Exploration, Inc.
As a result of the alliance with Westerly, and the merger with Black Pearl Energy, Inc., Bonanza Oil & Gas will develop two additional properties in West Texas. Westerly Exploration will act as the operator in addition to maintaining a working interest.
The first property is the Bourland Field in Ector County, Texas. The Bourland Field, currently operated by Westerly, consists of 8 producing wells from the San Andres Formation at 4,400 feet, known as the Edwards Unit. The Unit has 960 acres that permit Bonanza, along with Westerly, the opportunity to drill an additional 8 wells, of which Bonanza retains a 75% Working Interest. The current drilling schedule is to commence on or before October 1, 2008.
The second property is the Good North Field in Borden and Howard Counties, Texas. The Good North Prospect consists of 1,263 acres, and Bonanza will retain a 75% Working Interest, with Westerly acting as Operator of the property. The Good North affords Bonanza and Westerly drilling opportunities offset to historical production in the Jo Mill Spraberry and Dean zones. The Good North also has drilling opportunities in the Wolfcamp and Canyon Zones. Westerly has obtained 3D seismic coverage to further assist in the evaluation of the Good North Project.
“The acquisition of these Properties provides current producing wells and additional PUD locations to Bonanza Oil & Gas. Bonanza’s continuous drilling program will increase reserves, revenues, and stock holder’s equity. We are pleased to continue and expand our Strategic Alliance with Westerly Exploration,” said Bill Wiseman, President and CEO.
About Bonanza Oil & Gas, Inc.
Based in Houston, TX, Bonanza Oil and Gas, Inc. holds assets ranging from current producing properties, wholly owned prospects, to developing working interests in Proven Undeveloped (PUDS) properties.
Westerly Exploration, Inc. – www.westerlyexploration.com
About Viewpoint Securities, LLC
Viewpoint Securities, LLC is the financial advisor for Bonanza Oil & Gas, Inc. Viewpoint provides investment banking and merchant banking services to emerging companies within the oil and gas, mining and other natural resources sectors. The company’s investment banking specialists are focused on delivering creative corporate finance solutions to fit the specialized needs of our clients. The group is headquartered in La Jolla, California. For more information you can contact the company at (858) 480-2800 or by email at info@vpsecurities.com. For more information go to: www.vpsecurities.com
Safe Harbor Statement
Some of the statements made by the Company in this press release are forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. The Company believes that its primary risk factors include, but are not limited to: production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others. Additional information concerning these and other important factors can be found within the Company’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors.