HOUSTON, TX–(Marketwired – August 27, 2015) – America Resources Exploration, Inc. (OTC PINK: AREN) (“America Resources” or “the Company”), today announced that it has acquired a fractional interest in the Winchester #1H oil and gas well located in Madison County, Texas. The well is operated by Woodbine Acquisition, LLC. of Fort Worth, Texas and is located on a 431 acres lease.
The well is currently producing from the Woodbine formation from a completion depth of between 9,240 and 14,835 feet at a daily average rate of 54 barrels of oil and 9 MCF of gas for the period ending in April. The well was originally completed in the first quarter of 2012. Investors may refer to the company’s 8-K filing with the SEC for more detailed information about this interest.
“Woodbine Acquisition has been operating this well with consistent production,” stated Mr. Huang Yu, CEO of America Resources. “Although a smaller incremental production addition for us, the acquisition opportunity will be accretive and provide a dependable future revenue stream.”
About the Woodbine Formation
The Woodbine Formation is a geological formation in east Texas whose strata date back to the Late Cretaceous in the Upper Cenomanian stage. It is the producing formation of the giant East Texas Oil Field from which over 5.42 billion barrels of oil have been produced. The Woodbine overlies the Buda Limestone and underlies the Eagle Ford Formation and Austin Chalk. In some areas, the Woodbine is differentiated into the Lewisville Sandstone, Dexter Sandstone, Maness Shale, and/or Pepper Shale sub-units. The Woodbine and Eagle Ford sand units are collectively referred to as the “Eaglebine” oil and gas play in parts of East Texas.
About American Resources Exploration, Inc.
America Resources Exploration, Inc. is an oil and gas exploration and production company focused on the acquisition of properties in areas with significant oil reserves and drilling potential. The Company’s growth strategy includes the acquisition of oil fields from distressed third parties at a substantial discount to value, and development of fields whose potential has not been fully maximized. For more information investors can visit www.america-resources.com.
This press release and the materials referenced herein include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give American Resources Exploration’s current expectations or forecasts of future events. Such statements involve material risks and uncertainties, including but not limited to: whether newly drilled or newly acquired properties will produce at levels consistent with management’s expectations; market conditions; whether we will experience equipment failures and, if they materialize, whether we will be able to fund repair work without materially impairing planned production levels or the availability of capital for further production increases; the ability of American Resources Exploration to fund the costs of new wells and to obtain financing from other sources for continued development; the costs of operations; delays, and any other difficulties related to producing oil; the ability of American Resources Exploration to integrate the newly producing assets; the ability to retain necessary skilled workers to operate the new producing wells; the price of oil; American Resources Exploration’s ability to market and sell produced minerals; the risks and effects of legal and administrative proceedings and governmental regulation; future financial and operational results; competition; general economic conditions; and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements are set forth in our Form 10-K and the registrations statement for any offerings as filed with the SEC. American Resources Exploration undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. American Resources Exploration’s production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Although American Resources believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.