KKPT KoKo Petroleum Inc (CE)

KOKO Petroleum, Inc. (PINK SHEETS: KKPT) announced today that it has taken a minority participation working interest in the Boyd No. 1 well in the Barnett Shale play, north of Fort Worth, Texas. This well is the first in a planned program to exploit oil and gas reserves from leasehold interests held in the Barnett Shale play located in Cooke, Wise and Montague Counties, Texas. The Barnett Shale is the largest natural gas play in Texas. It is presently producing 900 MMCF of gas per day and is considered one of the largest U.S. domestic natural gas plays with sizable, remaining resource potential. The first Barnett Shale wells were drilled and completed in the early 1980s by Mitchell Energy of Houston, Texas. According to an in-depth 2004 sector report on the Barnett Shale, developed by Morgan Stanley (NYSE:MWD), the Barnett Shale play is estimated to hold reserves in the non-core area that could be as high as 150 BCF per 1,000 acres. The report estimated that because of the amount of gas available in the area, successful wells in the Barnett Shale should be economically viable in almost any gas price environment. There are 75 rigs currently operating in the area. Under the terms of the participation agreement with Rife Energy Operating, Inc. (the program's operator), KOKO Petroleum has acquired a minority working interest (approx. 10%) in the drilling and completion of one well (Boyd No. 1) that has already been drilled to an approximate depth of 8,800 feet. This well is now in the completion stage and is expected to go on-line in approximately 45 days. The total cost for drilling and completion of the McCoy No. 2 well is anticipated to be approximately $1.4 million. "Petroleum and natural gas production in the Barnett Shale play has been increasing steadily year after year. This is by far one of the most active and prolific gas fields in America right now and as such is garnering a lot of attention all the way from the oil patch to Wall Street. The group that we have joined in this Barnett Shale drilling program is affiliated with one of the major stakeholders in the area with scores of wells already in production. We are very confident in their proven ability to locate the best drilling sites in the area and to efficiently tap the vast gas resources held in Barnett Shale. This project is one of several next steps in KOKO Petroleum's ongoing program to build a diverse portfolio of promising oil and gas properties and prospects. We plan to continue pursuing other promising prospects that should help us build a diverse portfolio with long-term value for our shareholders," says Mr. Ted Kozub, Chief Executive Officer of KOKO Petroleum, Inc. Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications which may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above.