Mark Western, the company's Chairman & CEO, stated: "This is a massive step in the right direction, especially given the financial restraints and resulting capital expenditure limitations we have suffered. We have managed to bring production up slightly while implementing much tighter controls and cut-backs in field operating expenses."
Western added: "We are now in negotiations with potential industry partners in order to (i) enable us to finance the redirection of production at Red Fish Reef's Cedar Point to Smith Point, with the expectation of reducing operating expenses by an estimated 40 percent; (ii) increase its salt water disposal capacity at Red Fish Reef, with two salt water disposal wells on the platform; and (iii) implement an aggressive work-over/recompletion and drilling program intended to bring up production."
About Tekoil & Gas Corporation
Houston-based Tekoil & Gas Corporation is a technology-driven company focused on the development, acquisition, stimulation, rehabilitation and asset improvement of small to medium-sized oil and gas fields. The combination of energy fuel reserves and advanced yield technologies are anticipated to generate value for Tekoil and its stakeholders, as the company targets above average growth in the 21st century energy sector. Additional news and information will be made available on the Tekoil website at http://www.tekoil.com and through further press releases.
Forward Looking Statements
This news release may contain certain forward-looking statements, including declarations regarding Tekoil and its subsidiaries' expectations, intentions, strategies and beliefs regarding the future within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements contained herein are based upon information available to Tekoil management as at the date hereof, and actual results may vary based upon future events, both within and without the control of Tekoil management, including risks and uncertainties that could cause actual results to differ materially including, among other things, the impact that acquisitions may have on the company and its capital structure, exploration results, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditure requirements, competition, governmental regulations and other factors, some of which are set forth in Part I, Item 2, of Tekoil's registration statement on Form 10-SB.