SAN FRANCISCO, Feb. 7, 2013 /PRNewswire/ -- Worthington Energy, Inc. (OTCQB: WGAS) ("Worthington" or the "Company"), an energy company engaged in the acquisition, exploration, development and drilling of oil and natural gas properties, takes this opportunity to provide its shareholders with an update on the status of the Company's Vermillion Block 179 (VM179) asset. As previously reported, in an agreement with Montecito Offshore, LLC ("Montecito") of Louisiana, Worthington acquired a 70% working interest, with a net revenue interest of 51.975%, in 546.875 acres in the Vermilion 179. Located in the shallow waters of the Gulf of Mexico offshore from Louisiana, VM179 is adjacent to Exxon's producing VM164 #A9 well.
"I am pleased to report that we received a commitment letter for an $8.5 million term loan from Ventana Group LLC," stated Mr. Charles F. Volk, Chairman of the Board and recently reappointed CEO and President of Worthington Energy, Inc. "As the terms of the commitment explain, this credit facility is dedicated to developing the VM179 lease and meeting all of Worthington's related financial commitments."
"The Ventana loan will allow us to settle existing convertible debentures related to our VM179 lease acquisition. In addition, it will provide funding for equipment and installation expenses associated with drilling and production costs of new wells," continued Mr. Volk. "$3.5 million will be available immediately upon closing and the remaining balance will be drawn down within 90 days of the initial funding, based on a schedule approved by all parties. As a result of this funding, we anticipate drilling to commence during Q2/Q3 of 2013."
"Newly appointed Board of Director's member, David Pinkman, brings more than decade of significant oil and gas exploration experience to the Company and he will be instrumental in moving the VM179 project forward," added Mr. Volk. "David is excited about the enormous upside potential that VM179 represents for our company and our valued shareholders as we bring this project to fruition."
The 2012 Reserve and Economic Evaluation on Vermilion Block 179, issued by James F Hubbard Petroleum Consultant (JFH) of New Orleans, LA, shows Gross Proved Reserves of 784.3 Thousand Barrels (Mbbl) of Oil and 2,215.4 Million Standard Cubic Feet (MMSCF) of Gas, and Net Proved Reserves of 407.6 Mbbl Oil and 1,151.5 MMSCF Gas with a Projected Future Net Revenue of $36.7 million and a Discounted Future Net Income of $20.3 million (PV-10). The report also shows Combined Gross Total Reserves for VM 179, both Proved and Probable, of 2,129.7 Mbbl Oil and 4,237.9 MMSCF Gas, and Net Total for all reserves of 1,106.9 Mbbl Oil and 2,202.7 MMSCF Gas with a Projected Future Net Revenue of $97.7 million and a Discounted Future Net Income of $55.1 million (PV-10). The Gross Reserves referenced above are to 100% working interest in the lease. The Net Reserves and all income data are to the net interests owned by Worthington. Appropriate deductions have been made for royalties and overriding royalties.
Worthington engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Worthington is an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells. Worthington was founded in 2004 and is based in San Francisco, CA. More information about Worthington Energy, Inc. can be found by visiting the Company's website at www.wenergyinc.com.
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