American Community Development, Inc. Announces the Signing of a Joint Venture Agreement (Farmin) on Up to 35,000 Acres of Oil an
23 May 2011 - 10:00PM
Marketwired
American Community Development, Inc. (PINK SHEETS: ACDP) ("the
Company") announces the signing of a Joint Venture Agreement
(Farmin) on up to 35,000 acres of oil and gas exploration lands in
Union County, New Mexico, USA; controlled by High Energy Resources
Inc. (Farmor).
The 35,000 acres (54 sections) is part of a large dome
structure. Six wells have been drilled on the lands, 35 miles of
seismic has been shot, and significant geological data (well logs,
mapping, etc.) and geophysical data is available. It is planned to
reprocess existing seismic and as well shoot an additional seismic
program to pin point well locations for up to an initial 6 well
program. Multiple zones have been identified from approximately 500
feet to 4,500 feet in depth, with multiple oil and gas showings.
The Farmor will be the operator of the project.
A recent engineering report states that if the sands are oil
saturated in the 35 sections higher in the structure, the total oil
in place could be 407 MM barrels. Using a conservative estimated
recovery factor of 10%, 41 MM barrels could be recoverable. Using
an oil price of $100 per barrel, this would equate to greater than
a $4,000,000,000 ($4 billion) reserve. Management estimates that
individual wells that test commercial could produce in the order of
100 plus barrels of oil per day, and have up to 400,000 barrels of
oil in reserves.
The Company will have a 50% working interest in the 6 well
program, and will be engaged in financing activities over the
coming weeks to fund its working interest position.
Management Comment: "The Company considers itself fortunate to
have the opportunity to participate in such a large scale oil and
gas play resident onshore in the USA. The combination of continued
restrictions on offshore drilling, turmoil in the far east, and
surging oil prices (recently over $100 per barrel), all of which
affects demand - supply balance; makes this an attractive and
timely business opportunity to fast track shareholder value."
About American Community Development, Inc.:
The Company is an emerging junior oil and gas company
financially well connected, and will be focused on exploiting oil
and gas reserves onshore within the USA. The Company is in the
process of assembling a seasoned team of managers and technical
professionals in the areas of geology, geophysics, engineering, and
legal. The Company is positioning itself for aggressive asset
growth and shareholder value enhancement.
American Community Development, Inc.
Edwin Mah, Director
This news release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Act of 1934, as amended;
such statements are subject to risks and uncertainties that could
cause actual results to vary materially from those projected in the
forward-looking statements. The Company may experience significant
fluctuations in operating results due to a number of economic,
competitive and other factors. These factors could cause operations
to vary significantly from those in prior periods, and those
projected in forward-looking statements. Information with respect
to these factors, which could materially affect the Company and its
operations, are included on certain forms the Company files with
the Securities and Exchange Commission.
Contacts: American Community Development, Inc. Edwin Mah
Director 702-605-0145 info@acdp-ir.com
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