DALLAS, TX — (Marketwired) — 08/13/13 — Petron Energy II, Inc. (“Petron II” or the “Company”) (OTCBB: PEII) projects that it will likely become profitable in the 2nd Quarter of 2014.
Petron Energy II, Inc., together with its subsidiaries, engages in the acquisition and development of properties for the production of crude oil and natural gas, the transportation of natural gas through its pipeline subsidiary and well servicing through its servicing subsidiary. The Company–s operations are primarily based in the United States.
Petron Energy II, Inc. is a secondary recovery company, and its game plan is to begin water/gas flood operations on each of its leases to achieve optimal production levels.
Petron Energy II, Inc. projects that if it can continue its current pace of production improvements and successfully earn its second tranche against its $5 million line of credit from TCA Global Credit Master Fund, LP (“TCA”), there is a strong possibility that it will become profitable by late 2nd quarter 2014.
Floyd Smith, President and CEO of Petron Energy II, Inc., states, “We really like how our development plan is materializing. We recently closed on several key leases which are positioned in an area which offers very good production history. Flooding these leases should allow peak daily production rates in the range of 35 – 50 BO/D from each lease after 90 days of flooding procedures. We have 18 leases to implement secondary recovery flooding procedures on.”
“Currently, we are working with our funding source, TCA, to structure our second tranche, which should allow us to put 2 – 4 of our leases into full secondary recovery operations. A second tranche of $500,000 – $1,000,000 should allow us to grow our daily production to 100 – 200 BO/D. Our breakeven is achieved at 100 BO/D.” Smith further states, “We feel the execution of our plan of secondary recovery operations should increase oil and natural gas production rates significantly. The company is projecting that this significant growth in oil and natural production should allow it to achieve profitability sometime during the latter part of the 2nd quarter 2014.”
About Petron Energy II, Inc.:
Petron Energy II, Inc. is a Dallas-based, oil and gas exploration and production company. For further information about the Company, please visit our website .
Notice Regarding Forward-Looking Statements
This news release contains “forward-looking statements” (statements which are not historical facts) made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations rather than historical facts and they are indicated by words or phrases such as “anticipate,” “could,” “may,” “might,” “potential,” “predict,” “should,” “estimate,” “expect,” “project,” “believe,” “plan,” “envision,” “continue,” “intend,” “target,” “contemplate,” or “will” and similar words or phrases or comparable terminology. We have based such forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward- looking statements are only predictions and involve known and unknown risks and uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, many of which are beyond our control. These factors include, but are not limited to, the time to consummate the proposed development, completion and extraction; the timing and extent of changes in market conditions and prices for natural gas and oil; the timing and extent of the Company–s success in discovering, developing, producing and estimating reserves; the economic viability of, and the Company–s success in drilling, the Company–s ability to fund the acquisition, development, completion and extraction of oil and gas assets and the Company–s planned capital investments; the Company–s future property acquisition or divestiture activities; increased competition; and any other factors listed in the reports the Company has filed and may file with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company–s expectations only as of the date they were made. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or the occurrence of unanticipated events or otherwise.
Contact:
Floyd Smith