LAS VEGAS, Aug. 4, 2004 (PRIMEZONE) -- KOKO Petroleum (Pink Sheets:KKPT) ("The Company") has been notified by Armen Energy Corp., the project operator, that they have successfully completed the first well, named "1B McKinney." The Pecan Gap Zone has now been perforated, fractured, and is producing oil to tanks. Armen has indicated that it will begin an "Initial Production Test" over the next few days.
Additionally, the project partners have outlined a continuous development strategy that begins with a 10 well program focused on developing the Pecan Gap Zone. Armen has already received permits for 4 new locations with one currently in process. Furthermore, the location for the second well has been built and the drill rig is scheduled to be on location by August 9th.
It is worth noting that the target depth will now only be 1750 feet. This will result in significantly reduced drilling and completion costs, which are now estimated at approximately $90,000 and may be further reduced by "project of scale" economics.
It is expected that in the course of development of the Pecan Gap Zone, the Wolfe City and Woodbine zones will be retested in more favorable locations.
With continued success, 20 to 50 addition wells could be drilled on the existing acreage. KOKO petroleum intends to fully develop its interests in this prospect.
Spot Crude Oil prices remain strong, hovering near all time highs, trading at $44.20/Barrel at this writing.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.