CDSG Signs Development Agreement for Oil Field in Frio County, Texas (OOIP) 15-27 Million Barrels
Rhea-AI Summary
China Dongsheng International (CDSG) has formed a Strategic Partnership with Stallion Energy Group for oil production in Frio County, Texas. The project targets the Olmos Formation, known for its stable oil production, with potential reserves estimated at 15-27 million barrels per 640-acre section. The partnership aims to drill vertical wells, capitalizing on the area’s significant oil and gas production history. CDSG anticipates strong projected revenues based on oil prices previously modeled at $55 per barrel in 2021, highlighting a favorable economic outlook for this venture.
Positive
- Strategic partnership with Stallion Energy Group for oil production.
- Potential reserves of 15-27 million barrels per 640-acre section identified.
- Project targets productive Olmos Formation, promising low-risk oil production.
- Projected revenues based on historical oil prices indicate strong economic potential.
Negative
- None.
News Market Reaction – CDSG
In the trading session that priced this news, CDSG declined 5.88%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Las Vegas, NV., March 10, 2022 (GLOBE NEWSWIRE) -- China Dongsheng International Inc., (OTC Markets: CDSG) (the “Company” or “CDSG”) is pleased to announce that the company has signed a Strategic Partnership with Stallion Energy Group, Inc. (“Stallion”) of Houston Texas, for a Working Interest to develop oil production in Frio County, southwest Texas.
The drill-ready leasehold is located within an area of two of the most productive oilfields in the San Antonio Oil and Gas district, with over 100 million barrels and 400 billion cubic feet of gas produced. The multimillion-barrel potential of the project was identified after critical evaluation, mapping and analysis of a large petrophysical database of well logs, mud logs and production analogues completed by Texas based team of petroleum engineers and a geologist with a combined 90+ years of experience.
The plan is to drill vertical wells using a 40-acre spacing within a 640 acre area of the lease portfolio acquired by Stallion. Our primary production target will be the shallow, oil rich Olmos Formation, which has been a consistent oil producing strata and continues to be an active exploration target in the area.
The target horizon offers low risk, shallow conventional oil production from several pay zones identified by local offset logs. Texas American Resources (now Trinity Oil & Gas) previously computed volumetric reserves for the Olmos in the direct lease area to have original oil in place (OOIP) of 15-27 million barrels per 640-acre section. At present, this volumetric calculation has not been re-verified by Stallion.
CDSG’s Chairman, Harp Sangha, stated, “With our objective of providing energy needs for today and tomorrow, this project provides an incredible opportunity for us to rapidly enhance the domestic energy output during a time of dire need. Solid projected revenues from production from this field were originally modeled on
About the Company: China Dongsheng International Inc. (OTC Markets: CDSG) is an emerging company based in Las Vegas, Nevada. The company's principal activity is seeking opportunities in both public and private companies in the technology, natural resource and various other sectors.
About Stallion: Stallion Energy Group, Inc. is an independent exploration and production company based in Houston, Texas primarily engaged in the activities of acquiring, developing, exploiting, and producing oil and gas properties. The Company is a wholly owned subsidiary of Canadian based Stallion Oil Corporation who are currently planning to go public on the Canadian Securities Exchange (“CSE”} in Canada.
Contact:
Harp Sangha-Chairman
1-702-595-2247
www.cdsgholdings.com
Company Disclaimers: As a "penny stock" Company, within the meaning of federal and state securities law, China Dongsheng International Inc. may not avail itself of the Safe Harbor provisions as identified in the Private Securities Litigation Reform Act of 1995. However, CDSG provides the following disclaimer and warning to protect our shareholders, prospective investors and the public at large by alerting them to the risks and uncertainties involved with any investment, and the need to perform their own due diligence and assessment.
Forward-Looking Statements:
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Security and Exchange Commission.
