HOUSTON, November 1 /CNW/ - Providence Energy Belize, Limited (a fully
owned subsidiary of Providence Energy Group, Inc) formally signed a Production
Sharing Agreement with the Ministry of Petroleum in Belize for 531 square
miles of petroleum concessions located on, near and offshore Belize, where
international attention has been gathering since petroleum was discovered
eighteen months ago.
"We are pleased to work with Providence and wish them well," stated
Florencio Marin, Minister of Natural Resources. "We are eager for more
discoveries of black gold," Marin continues, "and we chose Providence as a
petroleum partner because they have the knowledge and expertise we believe
will lead to another discovery, which will be beneficial to both Providence
and our country."
Although its agreement extends up to eight years for exploration, the
contract maintains that every discovered oil field has a 25 year contractual
life. Through the past year, in partnership with the Ministry of Petroleum,
Providence has assembled the most extensive data room on hydrocarbons in
Belize. This data -- reprocessed well logs, seismic surveys, and over 200
feasibility studies and maps -- should give the Company a strategic advantage
in Belize. Providence has been actively studying this and other geological
data, and the Company has already identified multiple areas for future
"Exploration in Belize has hardly begun, which is interesting since
nearly all of the 57 wells drilled there either had oil shows or are currently
producing oil, indicating the source rock is exceptional," said Providence
Energy Group CEO, Scott Bayless. "There are 20 times more wells drilled in the
state of West Virginia each year than in the entire history of Belize, and
nearly every well was explored years ago with rudimentary technologies that we
would consider antiquated by today's standards."
With the recent discoveries in Belize, there is little doubt whether
hydrocarbons exist there. According to Dr. Kyou Kim, PhD, Providence's senior
geologist, "Belize is very significant in terms of petroleum geology.
Approximately 200 million years ago the Yucatan peninsula was adjacent to the
coast of Venezuela, where some of the largest oil fields are known to exist.
That this peninsula (encompassing Southern Mexico, Guatemala and Belize) holds
the 2nd largest oil field in the world (the Cantarell field of Mexico) is no
coincidence," stated Kim. "This region resembles the Gulf region of the Middle
East, which holds over 50% of our known reserves. Not only does the Yucatan
have a similar geology as the Gulf, but it also has an analogous subduction
zone -- a geological phenomenon which continually generates both petroleum and
petroleum traps and renders the 'chicken-and-the-egg' problem of timing
The subduction zone Dr. Kim refers to is an area on the western coast of
Mexico, where the organic rich sedimentary Pacific basin is folding underneath
the Mexican continental shelf at a rate of about 5 to 15 centimeters per year.
Similarly, the Saudi peninsula is folding underneath Iran, which Kim believes
is the primary generator of petroleum and traps for that region. The timing
problem, he referred to, constitutes an industry concern that traps are
oftentimes created before oil migration, which renders them empty. With a
subduction zone, on the other hand, oil is continuously generated and traps
are continually formed.
The Company believes not just that Belize will become a significant
petroleum state, but that its concessions will be a major area of discovery.
"We are more than elated with the location of our concessions," stated
Bayless. "They are strategically positioned in southern Belize where we
believe a major oil migration path extends from Southern Mexico and the
subduction zone, through Guatemala, into Belize."
Reminiscing this idea, Dr. Ramanathan, Ph.D., Petroleum Consultant to the
Government of Belize, publicly stated after the last discovery (March 28, 2006
Channel 7 News conference) that he believed the next place of discovery in
Belize would be the "Southern offshore basin, where it is continuous with the
field of Guatemala... and also the southern basin on land near Crique Sarco,
Monkey River and the Punta Gorda Belt...and more in the southern offshore
basin including Glover's Reef." Providence's concessions encompass these
"Our concessions contain oil seeps, gas seeps, tar balls and oil slicks,"
Bayless continues. "Many people don't realize that a seep producing a barrel
per year beginning in the Cretaceous period would have filled a trap with 75
million barrels by the present age, about the same size of the current
producing field in Belize. What's really exciting is the petroleum seeps and
slicks throughout our concession areas are much more prolific."
Interestingly, the Cantarell field, just over 100 miles north of Belize,
was discovered near an oil slick reported by a fisherman named Cantarell.
About Providence Energy Group
Providence Energy Group was formed in 2006 as an independent energy
company primarily focused exploration and production of hydrocarbons in the
United States and Belize. The Company strategy is two fold: acquire producing
fields in the United States and exploration in promising frontier basins. The
company is headquartered in Houston, TX. To learn more about Providence Energy
Group, visit our website at www.providenceenergygroup.com.
Forward Looking Statements
Statements in this news release are "forward-looking" as defined by the
U.S. Securities and Exchange Commission and are based on expectations, beliefs
or projections that are subject to numerous risks and uncertainties. Investors
are cautioned that these statements are not guarantees of future performance,
and actual results could differ materially. Please refer to the company's
document titled "Risk Factors."
For more information, contact: Rachael Harriman,
email@example.com, (775) 741-8818.
For further information:
For further information: Providence Energy Group, Inc. Rachael Harriman,
775-741-8818 Fax: 832-565-9600 firstname.lastname@example.org