Paradigm Oil and Gas, Inc. (OTC PINK SHEETS: PDGO) is pleased to announce it has signed its first production contract for hydrocarbon extraction from Eleven (11) wells located in West Caddo Parrish, Louisiana.
Paradigm has begun working on the logistics for the delivery of the equipment and access to the lease and expects to begin producing oil within the next Ten (10) days. Paradigm's management secured a Fifty Percent (50%) working interest in the production of the hydrocarbons from this lease.
Management believes this contract provides Paradigm with the opportunity to begin measuring the economic value of the Centurion One and provides a revenue stream for the Company during the Centurion testing. The Centurion One is a portable production system than can be easily and economically moved from well to well and quickly installed to remove oil from the existing well bore.
Paradigm intends an initial extraction of all fluid from the targeted wells from the surface to about 1075 feet below the ground. The objectives during the test are: (1) to prove the Centurion One has the capability to recover up to 6,500 barrels of oil in a 12 month period of time, (2) the Centurion could operate up to 270 days a year, (3) the crew can reasonably work on 4 to 6 wells each day during operations, (4) the estimated lifetime recoverable value of oil could exceed $3,085,000 (based on the current price of $95.00 per barrel) for each Centurion unit making the retail price of $159,000 reasonable, and (5) prove the anticipated life expectancy of each unit to last 5 years.
"The value of this test is a game changer for Paradigm. If everything is successful, we will now be producing revenue and the technology can start being built commercially. A production facility for the Centurion One will most likely be in or around Eustace, Texas and we can begin working on the plans for developing the Centurion Two," said Todd Violette, CEO.
Source: Your Oil and Gas Eurasia.