Consolidated Oil & Gas, Inc. Purchases Additional Drilling Rig to Commence Drilling on the Maverick Basin Flank Prospect!
Posted on: Wednesday, 19 October 2005, 09:00 CDT
Consolidated Oil & Gas, Inc. (OTC:CSLG.PK) a publicly traded Energy and Exploration Oil & Natural Gas company announces that late yesterday afternoon they purchased an additional shallow drilling rig to begin drilling on the Maverick Basin Flank. This particular rig is equipped with a National mud pump as well as 4 1/2 inch drill stem. Mast capacity is rated at 120,000 lbs. and can drill to depths of up to 6000 feet! The mobility of this rig allows it to be moved quickly and efficiently reducing down time while moving from one location to the next.
Mr. Yeatman stated, "This drilling rig is definitely a workhorse and a compliment to our work-over and drilling capabilities! This drilling rig is in perfect operational condition and has a retail value worth approximately $250k. We have purchased it outright out of our capital reserves, so it will not add any debt to our bottom-line! Purchasing equipment outright at the time of purchase has been our key strategy that has enabled us to stay profitable on drilling projects. If natural gas prices should sink or oil prices fall to lower levels of $40.00 or even $30.00 per barrel, we should still be profitable; in some cases we have production costs in South Texas of less than $2.00 per barrel of oil. The only way that we have found to achieve low cost production like this is to own the equipment outright and not rent it or lease it. Our plan is to immediately deploy this rig to the Maverick Basin Flank site which holds 6 billion cubic feet (bcf) of natural gas reserves and prepare to commence drilling! We are extremely happy to add this additional drilling rig to our growing list of paid for in-house inventory of production equipment," Mr. Yeatman also stated.
For more information please contact Investor Relations at (973) 351-3868 or visit www.consolidatedoilgas.com.
About Consolidated Oil and Gas:
Consolidated Oil and Gas, Inc. is a US-based company engaged in the exploration and production of onshore domestic oil and natural gas properties. The company's exploration and production activities are focused primarily in Texas. Their mission is to apply strong technical expertise to unlock substantial oil and gas resources in areas where production can be achieved quickly and efficiently.
Safe Harbor Statement: This press release may contain forward looking statements, as defined in the Securities Reform Act of 1995. Actual events or results may differ from Consolidated Oil & Gas, Inc. expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties: including economic conditions, and availability of timely financing for projects.
Source: Business Wire
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