JACKSON, MS -- 02/08/08 --
The Stallion Group (OTCBB: SLGR) is pleased to
announce that the Company has entered into an agreement to participate in
all future drilling and exploration in a new oil discovery in Mississippi.
The recent discovery, known as the Belmont Lake Oil Field, is located on a
164 acre lease. Stallion also holds a gross 40% working interest in future
wells in the Palmetto Point area, which surrounds all sides of the Belmont
Oil Field.
Two exploration wells were drilled on the Belmont Lake lease in 2007. Both
wells, PP F-1-12 and PP F-12-3, have been producing at rates exceeding 100
barrels per day. Additional drilling in the Belmont Lake area is expected
to occur in the summer of 2008. Development plans for the field will
likely include horizontal drilling. Horizontal drilling has resulted in
substantial production increases as compared to vertical wells in
comparable discoveries in Mississippi. The location and number of
horizontal wells are currently being evaluated by the Company's Operators,
Geologists and Geophysicists.
"Stallion is pleased to be able to participate in such a substantial oil
discovery on lands not currently controlled by Stallion within its core
interest area in Mississippi and Louisiana. With current oil prices near
record levels, future discoveries in the Belmont Lake Field could
substantially enhance production rates and cash flow for the Stallion
Group," stated Christopher Paton-Gay, C.E.O.
Under terms of the Belmont Lake Oil Field participation agreement and
Farm-out Agreement, Stallion will pay 10% of all costs of the first
horizontal well to be drilled under the new 2008 drilling program to earn a
7% working interest; and furthermore Stallion will pay 10% of all costs
associated with drilling the first vertical well under the new 2008
drilling program to earn a 5% working interest. Thereafter, all future
wells drilled within the Belmont lands, Stallion will pay 5% to earn a 5%
working interest.
Drilling on the Company's land in Mississippi and Louisiana is currently
curtailed as was planned during the rainy season and high Mississippi River
levels. The company will focus on bringing into production all successfully
drilled wells in 2007. It is expected that cash flow from operations
(excluding capital costs) will be positive by the second quarter of 2008.
Drilling in Mississippi is expected to commence again in the summer of
2008.
About Stallion
The Stallion Group (OTCBB: SLGR) is an advanced oil and gas exploration and
emerging early stage development company focused on its Mississippi and
Louisiana exploration areas in the United States. The Company has developed
a foundational strategy for success which includes extensive analysis of
all drilling opportunities. Once the analysis phases are complete the
company can and does move very quickly to drill and establish reserve and
production values. Stallion Management is tasked with the requirement to
manage exploration and development risk by participating only with mature
oil and gas Operators on our AMI lands (Area of Mutual Interest).
Forward-looking statement
Certain statements in this presentation constitute forward-looking
statements or forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"). Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of THE
STALLION GROUP ("Stallion"), or developments in Stallion's business or in
its industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward-looking statements include all
disclosure regarding possible events, conditions or results of operations
that is based on assumptions about future economic conditions and courses
of action. Forward-looking statements may also include any statement
relating to future events, conditions or circumstances. Stallion cautions
you not to place undue reliance upon any such forward-looking statements,
which speak only as of the date they are made. Forward-looking statements
relate to, among other things, changes in the resource market; the market
focus of Stallion; Stallion's revenue mix and margin targets; Stallion's
operations priorities; and Stallion's strategy for its products and
solutions. The risks and uncertainties that may affect forward-looking
statements include, among others, the completion and integration of
acquisitions, the possibility of technical, logistical or planning issues
in connection with deployments, the continuous commitment of Stallion's
customers, demand for Stallion's products and other risks detailed from
time to time in Stallion's filings with the Securities and Exchange
Commission. Forward-looking statements are based on management's current
plans, estimates, projections, beliefs and opinions, and the Company does
not undertake any obligation to update forward-looking statements should
assumptions related to these plans, estimates, projections, beliefs and
opinions change.
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The Stallion Group
Toll Free:
1-877-662-7901
Email Contact
www.thestalliongroup.com
