Petrogas Company, Inc., today announced that it participated in a government auction by the Bureau of Land Management ("BLM") and successfully purchased two oil and gas leases in the Eastern States.
More specifically, the company purchased a lease in Washington, OH and another in Monroe, OH. The leases are on a 10-year primary term and the company will pay 12.5% in royalties to the government once production begins.
"We are pleased to have won these government auctions. These leases will be our first in the eastern states and with oil prices at a 12-month high we are looking forward to exploring the potential in this area," cited Mr. Huang Yu, CEO of Petrogas Company.
The total crude oil production in Ohio for 2015 was nearly 22 million bbl and the total natural gas production approximately 950 million mcf mostly produced from the Utica and Marcellus shales.
More than 1,200 wells are operated in Ohio in part by large companies including XTO Energy (an Exxon subsidiary) and Chesapeake.
Source: Petrogas Company
Date: Dec 21, 2016