Tartagal and Morillo Oil and Gas Concessions in Argentina
By admin | Published: October 17th, 2013
Scottsdale, AZ – April 16, 2009 – Delta Mutual, Inc. (OTCBB:DLTM) is pleased to announce today certain further developments and information concerning its Tartagal and Morillo partial interest concessions, held by our fully owned subsidiary, South American Hedge Fund (SAHF).
In August 2007, SAHF executed the final agreement to purchase from Oxipetrol-Petroleros de Occidente, SA Argentina and JHP Petroleum Engineering of China, certain interests in four oil and gas concessions in Argentina, including the Tartagal and Morillo concessions located in the Salta Province of Northern Argentina, bordering with Paraguay in the West and Bolivia in the North. These two concessions cover total areas of approximately 7,063 and 3,534 square kilometers, respectively.
Following an exchange with Oxipetrol-Petroleros de Occidente, SA Argentina and JHP Petroleum Engineering of China of certain development rights, a 60% participation interest in each of the Tartagal and Morillo concessions was acquired by New Times Group Holdings Limited of Hong Kong (stock symbol: HK-0166) for HK$ 2.1 billion, following approval by its shareholders in March 2009. Delta Mutual, Inc., through its wholly-owned SAHF subsidiary, holds a carry-over partial interest of 9% in each of the Tartagal and Morillo concessions. The joint exploration and development venture has been granted the Tartagal and Morillo concession rights for the next 25 years.
As previously reported, public releases by the company holding the majority interest in each of these concessions, a Technical Report generated by an independent valuation firm estimated the gross (100%) unrisked, prospective resources of these two concessions at approximately 144.5 million barrels of oil and 2.3 billion cubic feet of gas. Based on the current industry prices for oil and gas in the region, the total potential revenue could reach approximately $7.35 billion, which substantially exceeds our previous estimates.
There can be no assurances as to the production levels of oil and gas from the Tartagal and Morillo concessions. Furthermore, there is no assurance as to the timetable for development of these properties.
Delta Mutual CEO, Dr. Daniel Peralta, commented, “The Agreement with New Times Group Holdings calls for a four-year operational development plan to be implemented by the majority owner of the Tartagal and Morillo concessions. During their due diligence over the last year, New Times Group Holdings examined the exploration work carried out and the wells drilled in the Tartagal block since 1980. Two structured wells were successful in finding oil last year, which further strengthened their confidence in the acquisition.” from those discussed in this Press Release. These risks are outlined in our SEC fillings.
About Delta Mutual, Inc.
Delta Mutual, Inc. invests in oil and gas properties in South America. It intends to focus its investments in the energy sector, including development of energy producing investments and alternative energy production in Latin America and the United States.
Forward Looking Statements
This Press Release contains forward-looking statements that involve risks and uncertainties, which may include statements about business strategy and development plans, plans for entering new business, anticipated sources of funds, including proceeds from future operations and plans, objectives, expectations and intentions contained in the Press Release that are not historical facts such as “estimated gross…prospective resources, total potential revenue, substantially exceeds, etc.” Because these forward looking statements involve risk and uncertainties, actual results could differ materially from those discussed in this Press Release. These risks are outlined in our SEC filings.
Delta Mutual, Inc. Malcolm W. Sherman, Executive Vice President 602-432-3887 Msherman3@aol.com