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Maverick Oil and Gas Provides Oil and Gas Reserve Update
DALLAS, Texas October 4, 2006 -- Maverick Oil and Gas, Inc. (OTCBB: MVOG) today announced its fiscal year end reserves.:
Miller and Lents, Ltd, international oil and gas consultants, have prepared a reserve report for Maverick as of August 31, 2006. Proved reserves, based on a SEC Price Case, using unescalated product prices and costs were 7.961 Billion cubic feet of gas equivalent (Bcfe) with undiscounted future net revenues of $28.96 million. Discounted at 10%, the future net revenues were $12.64 million.
A report using SPE definitions for reserves showed proved and probable reserves of 41.169 Bcfe with undiscounted future net revenues of $196.47 million, based on the 5-year strip price in effect at the time of the report. Discounted at 10%, the future net revenues were estimated at $59.12 million. Approximately 97 percent of the value and 99% of the reserves are associated with the Barnett Shale properties. The probable reserves were based on 73 locations with approximately 120 acre spacing between the proposed horizontal wells on the Barnett acreage. As of August 31, 2005, the proved reserves were 1.025 Bcfe and the proved and probable were 28.85 Bcfe.
James A. Watt, Maverick’s Chairman and Chief Executive Officer stated, “Maverick is in active discussions with various debt and equity financing groups to provide the additional funding necessary to continue our drilling operations in the Barnett Shale play and further evaluate the three well bores in the Fayetteville shale play of eastern Arkansas drilled earlier in 2006. If and when these discussions are successfully concluded, we will provide investors the details of the 2007 budget and plans for future activity.”
About Maverick Oil and Gas, Inc.
We are an early stage independent energy company engaged in oil and gas exploration, exploitation, development and production. We currently participate in these activities through the interests we hold in oil and gas exploration and development projects in Arkansas, Texas and Colorado. We will seek to acquire other exploration and production properties and from time to time sell or trade interests in properties in an effort to maximize value for our shareholders. For more information about the Company, please visit our website at www.maverickoilandgas.com
Forward Looking Statements
This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future results, levels of activity, events, trends or plans. We have based these forward-looking statements on our current expectations and projections about such future results, levels of activity, events, trends or plans. These forward looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, events, trends or plans to be materially different from any future results, levels of activity, events, trends or plans expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as guidance, may, will, should, could, would, expect, plan, anticipate, believe, estimate, continue or the negative of such terms or other such expressions. In connection with our announced drilling programs, important factors that could cause actual results to differ materially from our expectations, include but are not limited to: (1) our ability to secure an amount of proceeds sufficient to finance our anticipated drilling and development costs, given our currently limited capital resources; (2) our ability to sustain operations for a period of time necessary to implement certain of our development plans, given our currently limited resources: (3) whether drilling efforts can be completed within the time and cost budgets estimated by the company in view of the risks and uncertainties normally associated with drilling projects;(4) whether ultimate production may be achieved, and if so, in a manner consistent with either initial test results or our expectations, given the uncertainties associated with drilling and extraction of oil and gas reserves; (5) whether long term test results will justify the drilling of additional wells; (6) when such additional wells may be drilled; and (7) the ability to drill for and extract commercial quantities of oil and gas. In regard to our reserves, the SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves. Our reserve report makes reference to certain “probable” reserves that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. The SEC defines proved reserves as estimated quantities that geological and engineering data demonstrate with reasonable certainty to be recoverable in the future from known reservoirs under the assumed economic conditions. Probable reserves are estimates of potential reserves that are made using accepted geological and engineering analytical techniques, but which are estimated with reduced levels of certainty than for proved reserves. As they pertain to our business, in general, important factors that could cause our actual results to differ materially from our expectations, include but are not limited to those factors disclosed in our annual report on Form 10-KSB, our other filings with the Securities and Exchange Commission, as well as our other public documents and press releases which can be found on our web site (www.maverickoilandgas.com). Readers are cautioned not to place undue reliance on our forward looking statements, as they speak only as of the date made. Such statements are not guarantees of future performance or events and we undertake no obligation to disclose any revision to these forward looking statements to reflect events or circumstances occurring after the date hereof.
For further information, contact:
Steve Craig
(214) 239-4333
steve.craig@maverickoilandgas.com
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