Authorized - 500,000,000 shares
Issued and outstanding - 222,928,734 shares
NATURAL GAS PROPERTIES
PetroHunter is drilling its 14th operated well in the Piceance II project area
near Parachute, Colorado. Each of the 14 wells has encountered gas shows of
greater than 200 feet of net pay, with 12 of the wells containing more than 400
feet of net pay, all in sandstones within the Williams Fork Formation.
The company is in the process of negotiating natural gas marketing agreements
with an established mid-stream provider with firm transport on the Rockies
Express pipeline (REX). The company plans to complete all 14 of its existing
wells, and plans to drill and complete two additional permitted wells to coincide
with the construction of a gathering system during the third and fourth calendar
quarters of 2007.
PetroHunter has begun drilling its fourth well in the 20,000 net acre Buckskin
Mesa project. The first three wells encountered an average of 590 feet of net
sandstone pay, with strong gas shows over at least 3,000 gross feet of section.
Casing has been set in each of the wells in anticipation of completion in the
third and fourth calendar quarters of 2007, pending gathering and marketing
The company has entered into a preliminary scoping agreement with Clear Creek
Energy Services (CCES), an established midstream services provider, to design,
build, and operate a gas gathering system to transport unprocessed gas from the
Company's Buckskin Mesa wells to the Meeker Hub for processing and compression
into REX. CCES has initiated a feasibility study to transport as much as 15
mmcfpd of gas via existing small-diameter pipelines to the Greasewood Hub.
Marketing negotiations are underway with other companies for future delivery of
as much as 100 mmcfpd of production from the Buckskin Mesa area. PetroHunter
believes that limited gas sales from the Buckskin Mesa wells could begin in late
2007, pending completion of the transport and marketing efforts described above.
HEAVY OIL PROPERTIES
The Company is reviewing production and technical data from two recompleted wells
in the Fiddler Creek properties in Stillwater County, Montana. Preliminary oil
composition and production data indicates that both wells are capable of
delivering continuous heavy oil flow via use of progressive cavity pump
In January, an additional 3,000 acres of federal leasehold was acquired in the
Fiddler Creek area at the Montana federal sale. This additional acreage increases
the Company's acreage position in the Fiddler Creek area (which includes several
structural features) to more than 23,000 net acres. The Company has completed
geological and geophysical maps and has selected three vertical and three
horizontal well locations for development later this calendar year.
Great Salt Lake
PetroHunter is preparing permits for six vertical wells which will be located on
existing seismic lines. The Company has completed geologic and geophysical
analysis, preparation of maps and is in the process of finalizing the necessary
access to the lake from Little Valley Harbor.
Sweetpea Corporation Pty Ltd. ("Sweetpea"), a wholly owned subsidiary of
PetroHunter Energy Corporation, has signed a Letter of Intent with Century
Resources for a drilling rig for the drilling program in the Beetaloo Basin in
the Northern Territory of Australia. The rig is expected to arrive in the basin
early in the third calendar quarter. Extensive geologic and geophysical work has
identified seven initial well locations. The wells have been staked, and
construction of drilling pads and access roads are being scheduled. Based on our
2D seismic data field acquisition program completed in 2006, several additional
well locations are currently being developed for the first phase of drilling.
Sweetpea currently holds four exploration permits covering approximately seven
million acres within the basin, and has applied for another 1.5 million acres
under two additional exploration permits.
Northwest Shelf -- Offshore Western Australia
On February 19, 2007, the Joint Offshore Authority for the Commonwealth of
Australia and Western Australia granted an exploration permit to Sweetpea
Corporation on the Northwest Shelf of Western Australia (the "NW Shelf Permit").
The permit consists of nearly 20,000 acres located offshore in the Exmouth
Sub-Basin in the Carnarvon Basin. The Northwest Shelf has a number of commercial
oil and gas fields within geologically-significant proximity to Sweetpea's NW
Shelf Permit, as well as existing regional offshore infrastructure.
Sweetpea's NW Shelf Permit is located approximately 60 miles south of Chevron's
recently announced discovery in the Triassic Mungaroo Formation by the Clio #1
well. Drilling in 3,000 feet of water to a depth of 15,500 feet, the well
encountered 623 feet of net gas sands with multi-darcy permeabilities.
Sweetpea's block is located in about 500 feet of water and expected target depths
are projected to be in the range of 10,000 - 15,000 feet. Preliminary analysis
suggests that hydrocarbon potential occurs in both conventional oil and gas plays
and unconventional gas accumulations, both in Mesozoic reservoirs generated from
source rocks that are thermally mature.
About PetroHunter Energy Corporation
PetroHunter Energy Corporation, through the operations of its wholly-owned
subsidiaries, PetroHunter Operating Company and Sweetpea Corporation Pty Ltd, is
a global oil and gas exploration and production company with primary assets
consisting of various oil and gas leases and related interests in oil and natural
gas prospects, including approximately 220,000 net mineral acres in Colorado,
Utah and Montana, and over seven million net mineral acres in Australia.
PetroHunter Energy Corporation shares trade in the United States on the
Over-the-Counter Bulletin Board (PHUN).
PetroHunter Energy Corporation
1875 Lawrence Street, Suite 1400
Denver Colorado 80202 USA
Phone (303) 572-8900, Fax (303) 572-8927
Dr. Thomas AhlbrandtChairman and CEO
Garry D. LavoldPresident and COO
Michael K. LamCorporate Development North America
Alexander Hubbard-FordCorporate Development Europe
+44 (0) 79 8448 1541
Brad LongInvestor Relations
Investor Relations Contacts
United StatesCTA Integrated Communications
Bevo BeavenSr. Vice President/General Manager
United Kingdom4C Burvale
Carina Corbett, John Carrick Smith+44 (0) 20 7559 6710
Except for statements of historical fact, the information presented herein
constitutes forward-looking statements. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of the company to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include general economic
and business conditions, the ability to acquire and develop specific projects,
the ability to fund operations and other factors over which PetroHunter Energy
Corporation, or any of its subsidiaries, has little or no control. For complete
financial reports and other information about the Company and its operations,
investors are encouraged to read the Company's filings with the United States
Securities and Exchange Commission, including forms 10-K and 10-Q.
SOURCE PetroHunter Energy Corporation
Dr. Thomas Ahlbrandt, Chairman and CEO, +1-303-572-8900, or Garry D. Lavold,
President and COO, +1-303-572-8900, or Michael K. Lam, Corporate Development North
America, +1-416-303-8810, or Alexander Hubbard-Ford, Corporate Development Europe,
+44 (0) 79 8448 1541, or Brad Long, Investor Relations, +1-866-795-3436, or
+1-360-332-4013, all of PetroHunter Energy Corporation; or Investors, Bevo Beaven,
Vice President/General Manager of CTA Integrated Communications, +1-303-665-4200, for
PetroHunter Energy Corporation; or United Kingdom Investors, Carina Corbett or John
Carrick Smith, both of 4C Burvale, +44 (0) 20 7559 6710, for PetroHunter Energy
Copyright (C) 2007 PR Newswire. All rights reserved
10-Q for 3/31/07 http://tinyurl.com/32sy97