techDaily.info :: NeoMedia's Loch Energy Steps-Up U.S. Oil Production With ‘All Go-Aheads to Put First Oil in Tanks Next Week'

Tuesday, January 06, 2009

NeoMedia's Loch Energy Steps-Up U.S. Oil Production With ‘All Go-Aheads to Put First Oil in Tanks Next Week'

Posted: 3/21/2003

Posted By:	The Kaminer Group		Contact:	David Kaminer
Phone:	9146841934		Email:	dkaminer@kamgrp.com

NeoMedia's Loch Energy Steps-Up U.S. Oil Production
With ‘All Go-Aheads to Put First Oil in Tanks Next Week'

FT. MYERS, FL, and HOUSTON, TX, March 21, 2003 -- NeoMedia Technologies, Inc. (OTCBB: NEOM) said today that Loch Energy, Inc., has stepped-up its U.S. oil production, reporting that the "first oil should be in tanks next week" and that five of its wells are scheduled to be "in full production" soon thereafter.

NeoMedia has announced plans to acquire and merge with Loch (see "NeoMedia Reaches Agreement in Principal to Acquire Loch Energy, Inc., Houston-based Company with $410 Million in Proven and Probable Oil Reserves," Business Wire, March 13, 2003). In that announcement, NeoMedia said Loch projected incremental revenue of up to $800,000 per month in the near term from oil production, and also forecast an increase of up to $3.0 million per month by 2006.

Loch Energy CEO Douglas Ashworth reported his company "in compliance with the regulations and standards of the State of Texas, and moving ahead as quickly as possible to begin oil production."

Ashworth said Loch has posted the mandatory surety bond good for 99 wells, including all 55 of its (existing) wells, and been approved for a Producer's Transport Authority P4 by Texas, certifying the environmental integrity of its drilling projects. He also said Loch has received approval to conduct H-15 well bore integrity testing on an on-the-go basis, with "all the go-aheads to put the first oil in tanks next week and schedule our first five wells for full production by the first week of April. The wells are on Loch Energy's Amoco Fee and Lease Property in Liberty County, Texas.

Ashworth said that Loch is also looking into the potential of completing a natural gas sand in one of the five wells.

"With the current high price of natural gas above $6 per MCF," he said, "development of this one gas sand alone could generate from $45,000 to $180,000 additional gross revenue per month."

‘Very Exciting Time for Loch and NeoMedia'

Charles T. Jensen, NeoMedia's president, COO and acting CEO, said his company acquisition/merger plans and the start of oil production "a very exciting time for Loch and NeoMedia.

"Loch owns mineral and lease rights to five properties on approximately 130 acres near Houston," he said, "and the experts who evaluated the properties called Loch's position on these reserves as ‘extremely promising'. Their studies showed proven reserves of some 7,707,247 barrels, or $231 million at the current average oil price of $30 per barrel, and probable reserves of an additional 5,963,748 barrels, or $179 million at $30 per barrel."

Loch Energy reports that its expected gross barrels of oil to be produced from Lochs properties are 598,000 in Year 1, 1.4 million in Year 2, and 2.2 million per year thereafter until reserves are depleted. Loch's position is expected to be 358,000 in Year 1, 853,000 in Year 2, and 1.3 million per year thereafter as reserves hold. The expected gross revenue from the oil on Loch's properties is $16.5 million in Year 1, $39.2 million in Year 2, and $59.4 million per year thereafter until reserves are depleted. Loch's position is expected to be worth $9.8 million in Year 1, $23.5 million in Year 2, and $35.6 million per year thereafter as reserves hold.

About NeoMedia Technologies
NeoMedia Technologies, Inc. (www.neom.com), is an innovator and international leader in print-to-Internet and other technologies which make information faster and easier to access, with expertise in homeland security and e-authentication applications. NeoMedia markets services which link physical information and objects to the Internet under the PaperClickÔ trademark, and its Systems Integration Group specializes in Open and Storage System solutions and automating print production operations.

About Loch Energy, Inc.
Loch Energy, Inc., is a low-cost, environmentally-conscientious and safe producer of oil and gas properties, and a strong advocate of creating an environment in which the oil and gas industry, and related businesses, prosper and grow through responsible development of Texas's natural resources.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement

PaperClick is a trademark of NeoMedia Technologies, Inc.
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