Arenal Energy Corporation Seeks Permian Basin Oil Opportunities

Online, May 24, 2011 (Newswire.com) - Arenal Energy Corporation, an independent exploration, development and production company that focuses on acquiring existing onshore low-producing wells and using modern enhanced oil recovery techniques to maximize oil and gas production revenues, announced today that it is seeking oil reclamation and production opportunities in Texas' Permian Basin and Mid-Continent Oil Field.

The Company can move quickly to analyze and acquire undervalued producing oil and gas properties. Oil and gas leaseholders, prospective joint venture partners and operators can submit proposals to the Company at [email protected].

Recent reports by Goldman Sachs, J.P. Morgan and Morgan Stanley predict that oil prices will almost certainly be higher later this year, with Goldman Sachs expecting benchmark oil to hit $135 per barrel by the end of 2012. The investment banks said the recent 15 percent drop in benchmark crude was only a brief pause in what will likely be a long-term rise to near-record levels. British business leaders recently warned that the world faces an oil supply crunch within the next five years. The rate at which oil is produced risks hitting a peak by 2015, they predicted, sparking a surge in crude prices.

Stimulating domestic oil production has become essential to the United States' national security. The U.S. has the ability and resources to become completely independent of foreign oil, with an estimated 163 billion barrels of oil still in the ground, according to the Congressional Research Service. That much oil would sustain domestic production for over 50 years.

Up to 80% of existing oil reserves are not recovered through primary production from oil wells. In order to extract peak production from marginal oil wells, new Enhanced Oil Recovery ("EOR") methods have been developed which dramatically reduce the adverse environmental impacts which accompany conventional oil and gas recovery methods. Advances include the use of all-natural, biodegradable micro-particles to separate oil and natural gas from a rock formation's surface, accelerating the recovery of oil and natural gas reservoirs; the use of non-toxic bacterial treatment programs that remove paraffin accumulations and inhibit corrosion; and the use of temperature based systems (steaming and freezing) to mimic natural processes which open fissures in rock formations and increase oil and gas production.

Utilizing a low-risk strategy of "exploit instead of explore", we concentrate our operations in areas with proven reserves and production history with a primary focus on acquiring and re-working undervalued oil properties, specifically marginal oil wells that have been abandoned, shut-in, or are underperforming.

As oil prices rise and new supplemental recovery techniques are perfected, these wells have become an opportunity for reentry and production restoration.