September 18, 2006 at 09:58 AM EDT
Technigen Corp. is Now Mammoth Energy Group, Inc.
DENVER, Sept. 18, 2006 (PRIMEZONE) -- Mammoth Energy Group Inc. (Pink Sheets:MMTH) announced that the Company has completed the name change, a 1 for 300 reverse split and re-domicile from Vancouver to Nevada with Technigen Corp. and will now operate as Mammoth Energy Group, Inc. under its new symbol MMTH.
Mammoth is an independent energy development company primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. Mammoth has two wholly owned subsidiaries that are regionally focused: KMV Consulting, Inc. in Oklahoma and the southern part of the United States and ProTerra Oil & Gas Exploration, Inc. in the Rocky Mountain region.
KMV Consulting operates 10 natural gas wells in Rodgers County, Oklahoma on 1,075 acres where it has a 100% working interest (75% net revenue interest) in the project. Management believes that the Rodgers County project is a low risk project that will serve as a key foundation for growing cash flow. Historically, this area in Oklahoma offers shallow drilling in a blanket excello gas shale where drilling rigs are readily available. One competing company has drilled 267 gas wells in the area with 267 completions.
"We are leasing new blocks of acreage in the excello shale, adding to our recently purchased acreage," says Mammoth's Chief Executive Officer, Christopher Miller. "These are not spectacular wells on a well by well basis, but when you drill dozens of wells it is very cost effective. With enough acreage, you could drill enough wells to have very significant production, which is exactly what we intend to do," he added.
The 10 wells produce on average about 500 thousand cubic feet per day (500 MCFD), which at current market rates for natural gas is equivalent to production revenues of about $2,600 per day before line charges, royalties and operating expenses. Pipeline capacity is readily available and the natural gas from this area is sold into the Midwestern market.
ProTerra Oil & Gas, Inc. has about 10 prospects on 8,364 net acres that are located in Montana, Wyoming, Kansas, Nebraska and Colorado. ProTerra has a three pronged strategy to acquire oil and gas production and build cash flow. First, using 3-D seismic and well control, ProTerra is developing low risk drilling prospects in or near existing oil and gas fields. Secondly, it is buying existing abandoned or undeveloped production to re-enter with new technology that can boost or elevate production. Lastly, ProTerra is aggressively leasing substantial acreage positions in Montana, Colorado and Kansas. These acreage positions have generated interest from industry partners.
"We really like the prospects we are scheduled to drill this year because they are low risk areas where we feel confident we should find commercial amounts of oil or natural gas," added Miller. "We will also maximize the value of these large acreage positions to generate revenues through acreage sales and to gain industry partners to help drill and fully exploit our positions. We feel we are pursuing three strategies that when combined are a great recipe for success."
ProTerra and KMV currently utilize six geologists and two geophysicists who are all regional experts in their respective areas of focus. "We believe that by offering an incentive based structure, we can partner with the smartest geologists and geophysicists to find production," Miller explained. "It keeps our overhead to a minimum and rewards those who find the oil and gas. With this group, we have no shortage of prospects and ideas of where to find oil and gas. Most of these professionals worked on projects years ago and know where fields exist that were left behind when the oil and gas industry collapsed in the 1980s. We have set up a system where it is a win-win for everyone."
About Mammoth Energy Group, Inc.
Mammoth was formed with the goal of becoming a recognized regional player in the independent oil and natural gas industry by growing the company's oil and natural gas reserves. The acquisition of its two wholly owned subsidiaries has provided a foundation from which to grow in two excellent regions: northeastern Oklahoma shelf and the Rocky Mountain region.
More information is available at the company's website at www.mammothenergygroup.com.
Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
CONTACT: Mammoth Energy Group, Inc., North America 303-759-2337 email@example.com
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