VANCOUVER, March 19, 2012 /PRNewswire/ - RainChief Energy Inc. [OTCBB: RCFEF] today outlined the potential of its Gulf Jensen Prospect property, based on its strategic location within the high oil producing Permian Basin, the second highest oil producing region in the United States. Historical production levels support the company's belief that the Prospect has a high probability for success.
Today the Permian Basin oil fields produce 17% of total US crude oil and account for over 66% of totalTexas oil production. Estimated proven reserves are 4.5 billion barrels , second only to Alaska at 5.2 billion barrels. The Basin has produced over 20 billion barrels of oil since the first oil well was drilled in 1921. Based on today's oil prices the Basin's historical volume would have a market value of $2 trillion.
"The oil business in the Permian Basin has become more attractive based on crude oil prices showing signs of stability at levels exceeding $100 per barrel," stated RainChief CEO, Paul Heney. "Several small to mid-size oil and gas companies have recently announced deals to enter or expand their operations within the Basin region."
Recent Permian Basin region deals include the following:
Commenting on the recent deal activity, Heney added, "The relative strength of oil prices to natural gas prices helps explain the recent rise in deals. Typically, natural gas runs about one-sixth the price of crude, but today oil is trading at roughly 35 times the price of natural gas, greatly boosting the incentive to be in oil."
In fact, the number of transactions in what the industry calls the midcontinent, a region that includes the Permian Basin, more than doubled in the fourth quarter of 2009 versus the same period the year before, with the value of the deals increasing more than twenty-fivefold, said Jon McCarter, transactions leader for Ernst & Young's oil and gas center in Houston. 
The Gulf Jensen Prospect includes 2,400 gross acres of oil and gas leases and is located in the New Mexico portion of the Permian Basin, an area covering portions of west-central Texas and southeast New Mexico. The New Mexico portion of Basin holds some of the largest oil fields in the US. For comparative analysis, the neighboring Peterson oil field has recorded production rates to 492 bpd. Per well oil recoveries range up to 230,000 bbls with 1.0 BCF of natural gas.
 Source: University of Texas
 Source: Houston Chronicle
RainChief Energy is actively engaged in identifying, financing & developing oil & gas energy resource properties in North America, including the development of the Gulf Jensen Oil Prospect in New Mexico. The company continues to review additional resource properties that combine positive elements of short-term exploration & development costs with high potential for long-term success & financial return.