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Admiral Bay Updates Activity in SE Kansas Projects
Tue Jun 3, 4:52 PM
http://ca.news.finance.yahoo.com/s/03062008/28/link-finance-news-admiral-bay-updates-activity-se-kansas-projects.html
CENTENNIAL, COLORADO--(Marketwire - June 3, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to update activity in its projects in SE Kansas. In the Shiloh field, the Company has ordered two new electric compressors that will replace its current gas powered unit allowing increased sales and lower operating costs. Delivery is scheduled for late summer. It has also seen success utilizing compressed air to clean up near wellbore damage in several wells. This method, termed "huff and puff" injects air into the reservoir that loosens up coal fines that have flowed to the near well bore resulting in restriction to the flow of water and gas. The method as applied has turned around wells that may have been damaged by fracing with flow rates increasing up to 150% as a result. The cost is minimal and three to five wells can be done in a day. A "huff and puff" test program has also been carried out in the Devon field on 4 wells with similar results.
In the Mound Valley field, the Company has commenced a 20 well drilling program that will extend its production to the west and test new acreage. A new amine plant and dehy have been installed and additional upgrades to the gathering system are ongoing to handle the anticipated production from the new wells.
In the Santa Rita project, the Company is reviewing proposals to fracture stimulate the coals as well as the Chattanooga (Woodford) shale in its existing wells. It expects to test these wells this summer.
The Company has granted 750,000 options at $0.29 (CDN) to various employees, officers and directors of the company. The options vest over a period of two years and are exercisable for a period of five years until June 3, 2013.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
Torrent Energy Files Voluntary Petition for Reorganization
Tuesday June 3, 2:02 pm ET
http://ca.us.biz.yahoo.com/iw/080603/0403373.html
PORTLAND, OR--(MARKET WIRE)--Jun 3, 2008 -- Torrent Energy Corporation (OTC BB:TREN.OB - News) today announced it has commenced Chapter 11 Bankruptcy proceedings by filing a voluntary petition for reorganization under the Bankruptcy Code with the United States Bankruptcy Court for the District of Oregon. Each of Torrent's wholly owned subsidiaries, Methane Energy Corp. and Cascadia Energy Corp., also commenced a case under Chapter 11 of the Bankruptcy Code on the same day. Torrent and its subsidiaries continue to operate their businesses and manage their properties as debtors-in-possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.
The Company expects to file its Plan of Reorganization with the Bankruptcy Court shortly. The Plan is expected to include a senior secured super-priority debtor-in-possession (DIP) credit and guaranty agreement with YA Global Investments, L.P. (formerly known as Cornell Capital Partners, L.P.) pursuant to which the Company will obtain financing for working capital and other approved uses. The Plan of Reorganization is also expected to include a rights offering, under which the shareholders of the Company will have the opportunity to purchase a minimum of $2.0 million of additional new equity, subject to Bankruptcy Court approval and other conditions.
About Torrent Energy Corporation
Torrent Energy Corporation is an exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. For more information please visit www.torrentenergy.com.
Forward Looking Statements
This report contains certain "forward-looking statements" that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, particularly those statements regarding the proposed Plan of Reorganization and those preceded by the words "believes," "expects," "estimates," "anticipates," "will" or words of similar import are statements of management's opinion. These statements are subject to certain assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements herein. Factors that might cause such a variance include the effects of the Chapter 11 filing, the ability of the Company to continue to operate its business and maintain adequate liquidity and the uncertainty of the approval of the Plan of Reorganization. For example, although the Company anticipates entering into the DIP Credit Agreement and the Company anticipates conducting a Rights Offering, there is no assurance that the Bankruptcy Court will approve the Plan of Reorganization, including the DIP Credit Agreement and/or the Rights Offering, or that certain other conditions to the Company's entering into the DIP Credit Agreement or conducting the Rights Offering will be satisfied. These and other risks are or will be detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. More detailed information about risk factors that may affect the Company's actual results is set forth in filings by the Company with the SEC on Forms 10-K, 10-Q and 8-K, including the amended annual report on Form 10-K filed by the Company on February 25, 2008. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this communication. Except as required by law, we undertake no obligation to publicly update or review any forward-looking statements to reflect events or circumstances that may arise after the date of this report.
Contact:
For further information please contact:
Investor Relations in the U.S.
Pfeiffer High Investor Relations, Inc.
Geoff High
Principal
Phone: 303-393-7044
Torrent Energy Corp.
John Carlson
President & CEO
Phone: 503-224-0072
Email: Email Contact
Investor Relations in Canada
CHF Investor Relations
Cathy Hume
CEO
Phone: 416-868-1079 ext. 231
Email: Email Contact
Source: Torrent Energy
Coal bed methane seen as answer to Asian energy needs
Interest is turning to coal bed methane as a potential energy source for Asian countries as the economics improve with other energy costs soaring.
Author: Fayen Wong
Posted: Friday , 30 May 2008
http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=53854&sn=Detail
PERTH (Reuters) -
Surging gas prices are increasingly drawing new investors to Asia's nascent coalbed methane (CBM) seams, an underutilized energy source that analysts say could meet a sizeable part of the region's gas needs in coming years.
While the technology is still immature and governments in Asia have yet to put in place a policy framework to attract investment, the promise of a new frontier for energy production is forcing big firms, including UK gas producer BG Group Plc (BG.L) and Malaysia's state-owned Petronas PETR.UL, to take notice.
Also known as coal seam gas and once seen as a hazard for underground coal miners, it accounts for about 10 percent of gas output in the United States. But Asia methane stores, estimated at about 2,100 trillion cubic feet, have been largely untapped.
"The conventional source of oil and natural gas is getting harder to find. So as companies seek out unconventional sources of gas, coalbed methane is one of the most viable," said John Harris, director of global LNG at Cambridge Energy Research Associates (CERA) based in Beijing.
"And with gas prices at where they are now, the economics are also starting to look right."
With the region's appetite for gas growing annually at about 2 percent, CBM could be a viable option. Natural gas futures on the New York Mercantile Exchange have risen 54 percent this year to over $12 per million British thermal units (btu).
The new source of gas is being sought after not only as a source of pipeline gas but also as a feedstock for liquefied natural gas (LNG) plants in Australia.
Analysts see BG's proposed $13 billion takeover offer for Origin Energy (ORG.AX), Australia's largest producer of CBM, as well as Petronas' $2.5 billion investment in Australian Santos Ltd's (STO.AX) coal seam gas-fired LNG project as the biggest vote of confidence in the industry.
Experts say although it is early to forecast the percentage CBM would make up in Asia's total gas needs, they agree that with the right investment climate, its contribution would be significant.
For a graphic on world's leading coal producers, click on: here
CHINA, INDIA AND AUSTRALIA
In China, where there is about 1,000 trillion cubic feet (tcf) of methane gas, the government has targeted to produce 10 billion cubic meters of CBM by 2010, which would raise its share in total gas consumption to 10 percent from 3 percent in 2006, Merrill Lynch's analyst David Yip said.
Domestic and foreign firms pouring funds into China's coal bed methane sector include state-owned China United Coalbed Methane Corp, China National Petroleum Corp, U.S.-based Far East Energy Corp (FEEC.OB) and UK-listed Green Dragon Gas Ltd (GDG.L).
Amid growing difficulties in securing access to conventional oil and gas projects globally, several of the energy giants, including Royal Dutch Shell (RDSa.L), Chevron Corp (CVX.N) and ConocoPhillips (COP.N) are also locking in CBM exploration rights in China to boost their flagging reserves.
And although the CBM industry is in an embryonic stage in India, which has an estimated 16 tcf of reserves, Reliance Industries (RELI.BO) and state-run Oil and Natural Gas Corp (ONGC.BO) have already begun drilling at coalbed methane blocks.
"It could become a valuable addition to conventional gas resources as a means of maintaining supplies or reducing the need to bring in exports from further afield," said Paul Balfe, executive director of ACIL Tasman Consultancy.
"That would tend to keep domestic gas prices from rising too strongly because of reliance on LNG imports."
In Australia, where the CBM industry is the most developed compared to the rest of Asia, there are already four different groups jockeying to build coal seam gas-fueled LNG plants in Australia's Gladstone port in Queensland state.
Analysts said mounting interest in Australia's coal seam gas -- which energy consultant Wood Mackenzie Ltd estimates would account for half of the energy supply in Australia's eastern coast by 2020 -- may spark a flurry of consolidation among firms sitting on top of vast reserves of the unconventional fuel.
Plans to use CBM as a feedstock for LNG plants in Australia have led analysts to predict a rise in domestic gas prices, which at about A$3 per gigajoule, are one of the world's lowest.
But due to robust domestic gas demand, the recent enthusiasm to seek CBM in China and India is unlikely to result in a mushrooming of coal seam gas-fuelled LNG projects in these countries, which could cause domestic gas prices to rise.
"The governments may not be too pleased with having large amounts of local gas source being sold offshore when they could have been used to reduce the need for LNG imports," said Balfe.
But large amounts of coal seam gas reserves in Indonesia's coal-rich Kalimantan region could lead to the development of new LNG projects in the region, said Nick Davies, chief of Australia's Arrow Energy (AOE.AX), which is one of four firms planning to build coal seam gas-fuelled LNG plants in Australia.
Indonesia signed its first CBM production sharing contract on Tuesday and said it intended to sign several more this year to reduce its dependence on oil and sell more of its huge coal seam gas deposits as LNG on global markets.
CHALLENGES AHEAD
Technical challenges to develop such LNG projects include drilling enough wells to sustain the flow of gas for the liquefaction plants, as well as finding ways to store the gas before the LNG plant start up, as CBM wells take a far longer time to reach peak production, analysts said.
Coal seam gas also has a slightly lower heating value compared with conventional gas, but that can be easily resolved by blending it with LPG, CERA's Harris said. The low sulphur and carbon content also makes coal seam gas cleaner to burn than conventional gas.
To be viable, the coal seams need to be within reach of a market or LNG terminal. While drilling costs for coal seam wells are cheaper than offshore gas projects, high extraction costs are still a big hurdle for smaller companies vying with oil majors for a slice of the action.
"Most countries, apart from Australia, do not provide any incentives or subsidies for coal seam gas projects. That may be one of the reasons behind the difficulties in achieving large-scale commercial production," said a Hong-Kong based resource analyst who asked not to be identified.
(Additional reporting by Tom Miles in Hong Kong; Editing by Sambit Mohanty)
© Thomson Reuters 2008. All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Canadian Spirit Resources Inc. Announces First Quarter 2008 Financial Results
Thu May 29, 6:03 AM
http://ca.news.finance.yahoo.com/s/29052008/28/link-finance-news-canadian-spirit-resources-inc-announces-first-quarter-2008.html
CALGARY, ALBERTA--(Marketwire - May 29, 2008) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE: SPI.V) (OTCBB: CSPUF.OB) announces the release of the financial results and Management Discussion and Analysis for the three month period ended March 31, 2008.
CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. The Company has identified a 1.8 tcf discovered resource play (see News Release dated May 8, 2007), assembled a unique, 100 percent working interest land position in approximately 40,000 gross acres in northeast British Columbia and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.
Operational Highlights from the First Quarter
- Concluded joint venture to evaluate the Montney Formation and other deep rights at Farrell Creek, B.C.
- Drilling licence received for one Montney well
- Work commenced on connection of Gething pilot program to Spectra Energy gas sales pipeline
- British Columbia proceeding with 2% Net Profit Royalty Program
- Gross discovered resource at Farrell Creek, B.C. confirmed by Sproule Associates at 1.8 tcf
Selected Financial Data and First Quarter Results ($CDN)
For the three month periods ended
on or as at March 31 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue $ 22,321 $ 25,516
Net loss and comprehensive loss $ (325,896) $ (279,955)
Net loss per share (basic & diluted) $ (0.01) $ (0.01)
Working capital $ 4,072,533 $ 1,457,738
Total assets $ 44,148,242 $ 35,561,142
Total long term financial liabilities $ 213,418 $ 542,293
For the three month periods ended March 31 2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Lease acquisitions and retentions $ 11,071 $ 17,690
Geological and geophysical 47,572 8,301
Drilling and completion 1,189,728 708,407
Capitalized overhead 152,945 119,710
------------- -----------
Total petroleum and natural gas 1,401,316 854,108
Office equipment and furnishings 9,698 -
------------- -----------
Total capital expenditures $ 1,411,014 $ 854,108
------------- -----------
------------- -----------
Ember enters fight for Cordero
Bid could stymie Enmax takeover plans
Geoffrey Scotton
Calgary Herald
Wednesday, May 28, 2008
City-owned utility Enmax Corp. is pondering its next steps after an unsolicited bid for gas producer Cordero Energy Inc. on Monday by Ember Resources Inc. potentially derailed Enmax's plans to acquire Cordero for about $140 million.
Ember, a coal bed methane developer, said it would offer 2.56 Ember shares for each share of Cordero, which translates to a value of about $5.25 per share for Cordero based on the value of Ember shares in the five trading days prior to the offer. That's well above the already-sweetened $4.75 per share -- but all cash -- offer Enmax made May 18 and which closes today.
Moreover, Ember said it has nearly 26 per cent of Cordero's shares locked up through holders that have agreed to tender to the Ember offer. Among those holders are believed to be institutional shareholders ARC Financial Corp. of Calgary and Howson Tattersall Investment Counsel Ltd., which together hold almost 23 per cent.
Sources suggest Ember's deal for shares may be more attractive to those institutions than Enmax's cash offer because of tax implications.
A spokesman for Enmax was tight-lipped about what the utility's strategy may be going forward. The utility owns five per cent of Cordero and needs to acquire 66 per cent for the deal to go through.
"Our offer is still on the table and beyond that, we've got nothing to add at the moment," Enmax vice-president of public affairs Peter Hunt told the Herald on Tuesday. "We have no comment to make on the Ember offer. We knew that a couple of companies were looking at alternatives."
Hunt confirmed Enmax's window for any and all offers will close June 13 due to securities regulations and hinted Enmax believes it will still be successful.
"If you look at the the way the price of Cordero was moving in recent days, before (Monday's) announcement, you can see it was trending very close to the offer price, which indicated the offer would close successfully."
On Tuesday, the market appeared to be discounting the Ember offer as Cordero shares opened higher at $4.86 per share, up from Monday's $4.73-per-share close, before retreating to end Tuesday's session at $4.83, up a dime.
That's still well below the $5.24 value implied by Ember's close Monday. However, Ember's shares dropped 11 cents Tuesday to $1.94 per share, which at the stated exchange ratio, equates to $4.97 per share for Cordero.
Ember believes the assets of the two companies would work well under the same umbrella.
"The combination of Ember and Cordero would result in the creation of a highly focused and growth-oriented coal bed methane (CBM) resource company operating in a natural gas pricing environment that has seen dramatic improvements over the last three months," Ember said in a statement. "Combining the two CBM companies would result in an excellent geographic fit of complementary assets."
Raymond James Ltd. analyst Stephen Calderwood agreed, saying Ember and Cordero would be a good combination.
"The most obvious advantage for the combined company is lower relative debt . . . providing the opportunity for a 'larger Ember' to increase its drilling activity to fuel future growth," Calderwood said in an analysis. "This event is likely to be positive, but it could precipitate another increase in the Enmax cash offer."
Enmax has come under some criticism for its original $4.35-per-share offer for Cordero, made in February.
That offer was unsuccessful, however Enmax extended it several times in the hopes natural gas prices would decline and convince shareholders to tender to the city utility's offer. Ten days ago, Enmax upped its bid in the wake of continued strength in gas prices.
At the time, Mayor Dave Bronconnier said the Cordero gambit was not the only one Enmax and the city were pursuing to provide a stable and predictable supply of natural gas to the city-owned utility. "This is not the only play we're looking at," Bronconnier told the Herald.
Admiral Bay Acquires 29 Wells and 39,000 Net Acres in Devon Project Area and Partners Interest in Pipeline
Fri May 23, 4:56 PM
http://ca.news.finance.yahoo.com/s/23052008/28/link-finance-news-admiral-bay-acquires-29-wells-39-000-net.html
CENTENNIAL, COLORADO--(Marketwire - May 23, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that it has reached agreement to acquire approximately 39,000 net acres, 28 producing and SI wellbores and a SWD well in the Ft. Scott Project that immediately offsets its Devon Project. The Company also acquired the 50% interest in the Bourbon County Pipeline ("BCPL") it does not currently own. The acquisition more than doubles Admiral Bay's net acreage position in the Devon Project area and gives it complete control of the gathering system. This new acreage adds approximately 50 bcf of 3P reserves potential to the Devon Project area. The Ft. Scott Project currently produces 50-80 mcfpd into the BCPL system. The Company is reviewing alternatives for increased activity in this area to grow production and reserves.
The Company will issue 3 million shares of its common stock to the owners of the Ft. Scott Project and BCPL. In addition, the sellers will have a 25% back in interest after 120% payout on a project basis on the Ft. Scott Project acreage. One of the sellers, Running Foxes Petroleum ("RFP"), owns a minority interest (less than 10% percent in aggregate) in both BCPL the Ft. Scott Project, and is controlled by Steven A. Tedesco, President, CEO and a director of Admiral Bay. The other seller is an unaffiliated private company. RFP and the private company acquired their interest in the Ft. Scott Project and BCPL prior to Mr. Tedesco joining Admiral Bay.
Closing of the transaction is contingent upon approval from the TSX Venture Exchange for the issuance of the stock.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
Mahalo Energy to sell all Canadian resource assets
2008-05-21 05:40 MT - News Release
Mr. Duncan Chisholm reports
MAHALO ANNOUNCES STRATEGY TO FOCUS ON U.S. CBM AND SHALE; APPOINTMENT OF SENIOR U.S. VICE-PRESIDENT; AND INTENTION TO SELL CANADIAN ASSETS
Mahalo Energy Ltd. has taken steps to focus exclusively on its United States Hartshorne coal bed methane (CBM) and Woodford and Caney shale assets and opportunities. This strategy is complemented by the appointment of a seasoned United States shale gas professional to the Mahalo senior management team. The company has also decided to pursue the sale of all of its Canadian resource assets, proceeds from which will assist in financing additional CBM and shale gas activity in the United States.
Duncan Chisholm, president and chief executive officer, stated: "The company has demonstrated ongoing developmental success and repeatable, long-life reserves with low declines in its Oklahoma Hartshorne CBM program. We are also committed to capture additional Hartshorne acreage which will help grow our production and reserves. Industry activity close to our shale interests and our own shale work has been most encouraging; we have therefore decided to more aggressively pursue shale development underlying our acreage. An independent third party contingent resource study that we commissioned and subsequently press released in December, 2006, quantified Mahalo interest discovered gas resource (best estimate) at 524 billion cubic feet in the Woodford shale and 3.04 trillion cubic feet in the Caney shale."
"Mahalo is also fortunate to have Patrick J. Ryan join our team as senior vice-president, exploration, and general manager. Mr. Ryan will be based in our Tulsa, Okla., office. Mr. Ryan (BS geology, MS geology and MBA) has over 30 years of oil and gas experience with a majority in the mid-continental United States. Most recently, he was heavily involved in Woodford shale development in the Arkoma basin with Newfield Exploration. Mahalo is excited about the strong technical attributes that he brings to our company."
The Canadian assets for sale include developed and undeveloped properties of both a conventional and unconventional nature. Mahalo's developed and undeveloped Canadian landholdings amounted to approximately 29,000 and 99,000 net acres, respectively, as at Dec. 31, 2007. Sales of oil and gas from the properties in the three months ended March 31, 2008, averaged 1,354 barrels of oil equivalent per day net to Mahalo, before royalties. Approximately 65 per cent of the sales, on a barrel-of-oil-equivalent basis, were conventional natural gas from the Tofield field in Alberta. The asset sale will be facilitated through an agent and is expected to be completed in mid-2008.
Mr. Chisholm concluded by stating: "Upon completion of the sale of our Canadian properties, we will be in an excellent position to more aggressively exploit our significant United States CBM and shale gas prospect inventory. We have over 450 net drilling locations, including 212 net Hartshorne CBM wells; the remaining inventory involves shale gas prospects. This number is based on our seven-year drilling plan and assumes certain capital constraints."
We seek Safe Harbor.
Storm Cat Energy Corporation Announces First Quarter 2008 Financial and Operating Results
Fri May 9, 6:06 AM
http://ca.news.finance.yahoo.com/s/09052008/30/link-finance-news-storm-cat-energy-corporation-announces-first-quarter-2008.html
DENVER and CALGARY, Alberta, May 9 /CNW/ -- Storm Cat Energy Corporation (Amex: SCU) (TSX: SME.TO) today reported first quarter 2008 financial and operating results.
During the first quarter of 2008 we made significant progress in our transition towards profitability. Our revenue for the quarter was a record $6.0 million, a 53.8% increase from the first quarter of 2007. Operating Cash Flow(1) from our oil and gas activities increased 14.8% to $2.8 million. Adjusted EBITDA(2) was $1.4 million, an increase of 484.1% over the first quarter of 2007. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release. With improved natural gas pricing and improving production, we are building a solid foundation for future growth.
We are actively developing our assets to increase shareholder value. We are encouraged by the initial production from our first three operated wells in our Fayetteville Shale area. Additionally, we have significantly enhanced the value of our Powder River Basin ("PRB") assets through our purchase of 14,000 net undeveloped acres in our operating area. This acquisition provides us significant new drilling inventory and essentially doubles our reserve potential in the PRB. We continue to make progress in Elk Valley, an asset we believe will be important in the long term growth potential of the Company.
Financial Update (all figures in U.S. Dollars)
Natural gas revenue for the quarter ended March 31, 2008 was $6.0 million, representing a 53.8% increase over first quarter 2007. We accomplished this record revenue through pure organic growth.
Production sales volume for the first quarter of 2008 was a record 987.1 Million cubic feet (MMcf) an increase of 48.3% over first quarter 2007. We have increased sales volumes organically the last five quarters.
For the quarter, we reported a net loss of $3.6 million, or $0.04 per share, as compared to a net loss of $1.4 million, or $0.02 per share, for the first quarter of 2007.
Inclusive of hedging, the average realized gas price for the first quarter was $6.10 per thousand cubic feet (Mcf), 3.7% higher than the first quarter 2007 average price of $5.88 per thousand cubic feet (Mcf). Excluding hedging, the realized gas price for the first quarter of 2008 was $5.98 per Mcf.
Gathering and transportation expenses increased approximately $0.2 million from $0.6 million in the first quarter of 2007 to $0.8 million in the first quarter of 2008. The increase in total expense was a direct result of increased production volumes.
Lease operating expenses (excluding taxes) increased to $1.7 million in the first quarter of 2008 compared to $0.6 million in the first quarter of 2007. This increase resulted primarily from additional wells added through our successful drilling program, higher per well lease operating costs resulting from fuel and generator rental costs associated with new wells in our PRB development areas where the electrical infrastructure has yet to be installed and higher per well lease operating costs on our Sheridan and Ford Ranch areas resulting from higher water production from sales interruptions in the fourth quarter of 2007 and the first quarter of 2008.
Ad valorem and property taxes increased approximately $0.4 million to $0.7 million in the first quarter of 2008 compared to $0.3 million in the first quarter of 2007. The increase resulted from gas volume increases over the past year and slightly higher gas prices in the PRB during the first quarter of 2008.
Depreciation, depletion and amortization increased by $0.6 million to $2.2 million in the first quarter of 2008 compared to $1.6 million in the first quarter of 2007. This increase resulted from increased production resulting from our successful drilling activities over the past year.
Total assets increased 4.0% to $137.8 million at March 31, 2008 from $132.6 million at year-end 2007. The book value of oil and gas properties increased 5.0% to $123.1 million at March 31, 2008 from $117.3 million at year-end 2007.
Weighted average shares outstanding for the first quarter 2008 increased to 81.1 million as compared to 80.5 million in the first quarter of 2007. The increase in average shares outstanding is attributed to the exercise of outstanding options, the vesting of restricted share units and the issuance of new restricted share units.
Operations Update (all figures in U.S. Dollars)
Current total net production is 15.3 million cubic feet per day (MMcf/d), an increase of 25.4% from 12.2 MMcf/d at year end 2007.
Powder River Basin
During the first quarter of 2008 we invested a total of $5.5 million in the PRB. These capital dollars were used for drilling, completion, permitting, staking and water management plans for the 2008 drilling programs, as well as roads, water management, infrastructure upgrades and well repair. We drilled 11 wells in the PRB during the quarter and have since drilled six additional wells.
As previously announced, on April 15, 2008, we acquired approximately 14,000 undeveloped net acres in Sheridan County, Wyoming for approximately $5.6 million. The acquisition acreage is located in and around our current operations in the PRB. The acquisition increases our PRB acreage to 50,000 net acres and adds an additional two years of drilling inventory in the PRB, increasing our total drilling inventory to four years (based on current development plans).
Fayetteville Shale
We invested $2.7 million in capital in our Fayetteville Shale project in the first quarter of 2008. We commenced our 2008 drilling with the spudding of the first five wells. The 2008 drilling program continues to progress. Completion activities on the Ballard 1-18H, our first 2008 horizontal well, are expected to occur within the next week. The drilling of the horizontal lateral of the second 2008 well, the Owen 1-18H, is underway.
We are currently producing and selling gas from three operated wells, the Kamalmaz 1-13H, the Vaughan 1-18H and the Files 1-12H. As previously announced, the high pressure pipeline connecting our acreage to the Ozark interstate pipeline was placed in service and we achieved first sales in mid-April.
Elk Valley, B.C.
In Elk Valley we have nine wells on production and continue to progress in our dewatering efforts. We invested $0.4 million in the first quarter of 2008 in connection with our dewatering activities in the project. Additionally, to advance our de-watering, installation of larger down hole equipment and fluid level sensors has been completed. We remain encouraged by the gas rates we are observing and remain in active discussions with third-party pipeline operators concerning the design and possible installation of a gas sales pipeline.
Storm Cat's fixed-price natural gas hedges are summarized as follows:
2008 remaining -- 3,094,500 MMBtu at average price $7.02 CIG
2009 -- 4,603,000 MMBtu at average price $7.22 CIG
2010 -- 1,295,000 MMBtu at average price $6.90 CIG
Financial schedules accompany this press release. Please reference the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission and with Canadian securities regulators on SEDAR for important notes to the financial statements.
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration and development acreage in Canada. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Forward-looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to potential future production and growth, proposed new wells and infrastructure improvements affecting the Company's operations. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (http://www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2007.
CONSOLIDATED BALANCE SHEETS
(Stated in U.S. Dollars and in thousands, except share amounts)
March 31, December 31,
2008 2007
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $874 $1,133
Accounts receivable:
Joint interest billing 1,470 1,701
Revenue receivable 3,447 2,444
Fair value of derivative instruments - 1,760
Prepaid costs and other current assets 2,847 2,941
Total current assets 8,638 9,979
PROPERTY AND EQUIPMENT (full cost method), at
cost:
Oil and gas properties:
Unproved properties 50,953 51,438
Proved properties 86,454 78,096
Less accumulated depreciation, depletion, and
amortization (14,264) (12,228)
Oil and gas properties, net 123,143 117,306
Other property 1,113 1,180
Accumulated depreciation (848) (778)
Total other property, net 265 402
Total property and equipment, net 123,408 117,708
OTHER NON-CURRENT ASSETS:
Restricted cash 351 685
Debt issuance costs, net of accumulated
amortization of $2,274 and $1,988,
respectively 3,198 3,435
Accounts receivable long-term 1,354 759
Fair value of derivative instruments 888 -
Total other non-current assets 5,791 4,879
Total assets $137,837 $132,566
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $7,406 $5,825
Revenue payable 2,422 1,678
Accrued and other liabilities 4,185 4,131
Interest payable (13) 12
Share-based payments liability 504 394
Fair value of derivative instruments 6,849 -
Total current liabilities 21,353 12,040
NON-CURRENT LIABILITIES:
Ad valorem taxes payable 276 0
Asset retirement obligation 1,806 1,713
Fair value of derivative instruments - 183
Bank debt 51,311 43,056
Convertible notes payable 50,195 50,195
Total non-current liabilities 103,588 95,147
Total liabilities 124,941 107,187
SHAREHOLDERS' EQUITY:
Common shares, without par value, 69,834 69,834
unlimited authorized, issued and
outstanding: 81,096,070 at
March 31, 2008 and 81,087,320
at December 31, 2007
Additional paid-in capital 5,778 5,640
Accumulated other comprehensive income (loss) (1,536) 7,483
Accumulated deficit (61,180) (57,578)
Total shareholders' equity 12,896 25,379
Total liabilities and shareholders' equity $137,837 $132,566
CONSOLIDATED STATEMENTS OF OPERATIONS (Stated in U.S. Dollars and in thousands, except share and per share amounts)
For the Three Months Ended March 31
2008 2007
NATURAL GAS REVENUE $6,017 $3,912
OPERATING EXPENSES:
Gathering and transportation 803 561
Lease operating expenses 1,664 576
Production and ad valorem taxes 739 327
General and administrative 1,716 2,662
Depreciation, depletion, amortization
and accretion of asset retirement
obligation 2,162 1,634
Total operating expenses 7,084 5,760
Operating loss (1,067) (1,848)
OTHER INCOME (EXPENSE):
Interest expense (2,269) (629)
Interest and other miscellaneous income 20 32
Amortization of deferred financing costs (286) -
Total other income (expense) (2,535) (597)
Loss before taxes (3,602) (2,445)
Recovery of future income tax asset from
flow-through shares - 1,095
NET LOSS $(3,602) $(1,350)
Basic and diluted loss per share $(0.04) $(0.02)
Weighted average number of shares
outstanding 81,087,416 80,498,487
CONSOLIDATED STATEMENT OF CASH FLOWS
(Stated in U.S. Dollars and in thousands)
For the Three Months Ended
March 31,
2008 2007
Cash flows from operating activities:
Net loss $(3,602) $(1,350)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Recovery of future income tax asset
from flow-through shares - (1,090)
Share-based payments 266 454
Depreciation, depletion, amortization
and accretion of asset retirement
obligation 2,162 1,677
Amortization of debt issuance costs 286 -
Changes in operating assets and liabilities:
Accounts receivable (673) 1,437
Other current assets (21) (1,538)
Accounts payable (1,050) (456)
Accrued interest and other current
liabilities 7,745 (1,736)
Net cash provided by (used in) operating
activities 5,113 (2,602)
Cash flows from investing activities:
Restricted cash 1,075 -
Capital expenditures -- oil and gas
properties (6,842) (21,446)
Capital expenditures - other assets 51 (11)
Fair value of derivatives (8,203) 378
Net cash used in investing activities (13,919) (21,079)
Cash flows from financing activities:
Issuance of common stock - 811
Debt issuance costs 101 (7,630)
Proceeds from bank debt 8,255 -
Proceeds from convertible notes payable - 32,950
Net cash provided by financing
activities 8,356 26,131
Effect of exchange rate changes on cash 191 (1,017)
Net decrease in cash and cash equivalents (259) 1,433
Cash and cash equivalents at beginning of
period 1,133 5,299
Cash and cash equivalents at end of period $874 $6,732
Supplemental disclosure of cash flow
information:
Cash paid for interest $1,176 $792
Supplemental disclosure of non-cash investing
and financing activities:
Capital accruals and asset additions $10,049 $5,300
Increase in asset retirement obligation $64 $44
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(Stated in U.S. Dollars and in thousands)
For the Three Months Ended
March 31,
2008 2007
Net loss $(3,602) $(1,350)
Depreciation, depletion, amortization and
accretion 2,162 1,634
Interest Expense 2,249 597
Income Taxes - (1,095)
Amortization of Debt Issuance Costs 286 -
EBITDA 1,095 (214)
Stock-based compensation expense 266 447
Adjusted EBITDA(1)(3) $1,361 $233
RECONCILIATION OF OPERATING LOSS TO OPERATING CASH FLOW
(Stated in U.S. Dollars and in thousands)
For the Three Months Ended
March 31,
2008 2007
Operating loss $(1,067) $(1,848)
General and administrative 1,716 2,662
Depreciation, depletion, amortization and
accretion 2,162 1,634
Operating Cash Flow (2)(3) $2,811 $2,448
(1) We have included Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization, and share-based compensation expense)
because we believe it provides investors with a useful industry
comparative and is a financial measure used by management to assess
the performance of our Company.
(2) We have included Operating Cash Flow (natural gas revenues less lease
operating expenses, gathering and transportation expenses and
production taxes) because we believe it provides useful information to
assess our performance and to measure our cash flows from operations
for our investors.
(3) We believe EBITDA, Adjusted EBITDA and Operating Cash Flow provide
useful measures of cash flows from operations for our investors
because EBITDA, Adjusted EBITDA and Operating Cash Flow are industry
comparative measures of cash flows generated by our operations and
because they are financial measures used by management to assess the
performance and liquidity of our Company. EBITDA, Adjusted EBITDA and
Operating Cash Flow are not measurements of financial performance or
liquidity under accounting principles generally accepted in the United
States of America and should not be considered in isolation or
construed as a substitutes for net income (loss) or other operations
data or cash flow data prepared in accordance with accounting
principles generally accepted in the United States of America for
purposes of analyzing our profitability or liquidity. In addition,
not all funds depicted by EBITDA, Adjusted EBITDA and Operating Cash
Flow are available for management's discretionary use. For example, a
portion of such funds are subject to contractual restrictions and
functional requirements to pay debt service, fund necessary capital
expenditures and meet other commitments from time to time as described
in more detail in the Company's 2007 Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 17, 2008.
EBITDA, Adjusted EBITDA and Operating Cash Flow, as calculated, may
not be comparable to similarly titled measures reported by other
companies
Canadian Spirit Resources Inc. Announces 2007 Financial Results and Filing of Annual Disclosure Documents
Tue Apr 29, 6:00 AM
http://ca.news.finance.yahoo.com/s/29042008/28/link-finance-news-canadian-spirit-resources-inc-announces-2007-financial-results.html
CALGARY, ALBERTA--(Marketwire - April 29, 2008) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE: SPI.V)(OTCBB: CSPUF.OB) announces the release of its financial results and the filing of the Financial Statements, Management Discussion and Analysis and Annual Information Form for the year ended December 31, 2007.
Operational Highlights:
- Concluded joint venture to evaluate Montney Formation and other deep rights at Farrell Creek, B.C.
- Work commenced on connection of pilot project to gas sales pipeline
- British Columbia proceeding with 2% Net Profit Royalty Program
- Gross discovered resource at Farrell Creek confirmed at 1.8 tcf
- Land arrangement will increase Gething Formation lands by 2,500 acres
Selected Financial Data ($CDN)
For the years ended or as at December 31 2007 2006
---------------------------------------------------------------------------
Total revenues $ 90,522 $ 277,305
Net loss after income taxes $ (875,564) $ (1,075,215)
Net loss per share (basic & diluted) $ (0.03) $ (0.04)
Total current assets $ 1,205,479 $ 3,455,043
Total assets $ 38,748,627 $ 36,249,029
Total current liabilities $ 872,444 $ 857,202
Total long term liabilities $ 198,685 $ 692,650
Admiral Bay Receives Commitment From GasRock to Begin Phase II of Program
18:18 EDT Monday, April 28, 2008
http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20080428&archive=ccnm&slug=457972_1
CENTENNIAL, COLORADO--(Marketwire - April 28, 2008) - Admiral Bay Resources Inc. (TSX VENTURE:ADB) ("Admiral Bay" or the "Company") is pleased to announce that its mezzanine debt provider GasRock Capital LLC has approved its Phase II program by advancing an additional $3,000,000 (US). The program will allow for the continuation of the Company's recompletion of Mulky/Summit zones as well as new drilling at the Mound Valley Project, completion work at the Santa Rita Project, electric compression for the Shiloh Project, additional saltwater disposal capacity at the Shiloh project and testing and completion operations with its partner at the Revloc Project in Pennsylvania.
President and CEO Steven Tedesco commented "This new commitment by GasRock underscores the success we have had since putting their facility in place last fall. Their first phase of funding has allowed us to increase production and reduce per unit expenses to the point of being cash flow positive. With Phase II we can continue to aggressively develop our projects to grow production and reserves and take advantage of the current commodity price environment".
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
FOR FURTHER INFORMATION PLEASE CONTACT:
Admiral Bay Resources Inc.
Steven Tedesco
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
or
Admiral Bay Resources Inc.
Robert Carington
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Admiral Bay Updates the Revloc Project in the Appalachian Basin, Pennsylvania
Mon Apr 21, 5:23 PM
http://ca.news.finance.yahoo.com/s/21042008/28/link-finance-news-admiral-bay-updates-revloc-project-appalachian-basin-pennsylvania.html
CENTENNIAL, COLORADO--(Marketwire - April 21, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that the Company's partner in the Revloc Project has exercised its option to purchase an additional 25% working interest. The purchase price is $1,000,000 (US) per the terms of its original agreement for the additional 25% working interest. The Company is now 50/50 with its partner in the project and will continue to operate the project.
The partner chose to exercise its option after completing a seven well drilling program with the Company where the partner paid all of the costs. Evaluation of the results of the drilling, including core results in four wells, indicated that the gas contents of the coals are as high as 590 scf/ton dry ash free. The Company and its partner are proceeding forward with staking an additional three wells and moving toward testing the existing wells later this spring. The Revloc Project is located in the hydrocarbon prolific Appalachian basin and is adjacent to strong gas markets in the Northeastern part of the US.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
Admiral Bay Reports That Gross Sales Hit 3.0 MMCFGPD and With Current Gas Prices It Is Cash Flow Positive
Thu Apr 17, 2:16 PM
http://ca.news.finance.yahoo.com/s/17042008/28/link-finance-news-admiral-bay-reports-gross-sales-hit-3-0.html
CENTENNIAL, COLORADO--(Marketwire - April 17, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that the Company currently has gross sales of approximately 3.0 MMCFGPD from all three producing projects in Kansas. Based on present production and present realized prices above $9.00 per MCF the Company is cash flow positive.
In the Mound Valley project, a new compressor and dehydration unit put in place has increased sales by 30% to over 1000 MCFGPD in the past week. Producing rates have been as high as 1400 MCFGPD. Currently production is curtailed at 800 MCFGPD as adjustments are made to the new facilities. As the field pressures are drawn down, the field has experienced higher water production. As this water production decreases, gas production will increase. The project has seen an increase of over 300% of gross sales since January of 2008. The upgraded facilities were needed due to the Company's successful recompletion program in the Mulky Summit. To date, the Company has recompleted 25 wells in the Mulky Summit with average IP of 28 MCFGPD. The Company has a 100% working interest interesting over 28,000 net acres in the Mound Valley project. There are 11 additional wells awaiting completion and over 300 potential drilling locations.
With the success of the program in Mound Valley, the Company has begun a similar program in its Shiloh Project. The Company to date has recompleted six wells in the Mulky Summit with IP's ranging from 5 to 40 MCFGPD. The Company could have as many as 105 additional wells in the Shiloh Project that could be recompleted in the Mulky Summit in the future.
Admiral Bay also announces that Vern Swanson, one of the Company's current Directors, has been appointed Corporate Secretary, replacing Curt Huber. Mr. Huber has resigned his position of Corporate Secretary and V.P. Corporate Development in order to pursue other personal commitments, but will remain a consultant to the Company. For investors/shareholders requiring information on the Company, please contact our Denver office at 303-350-1255 or info@admiralbay.com.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
Storm Cat Energy Corporation Provides Corporate Update
Mon Apr 7, 6:02 AM
http://ca.news.finance.yahoo.com/s/07042008/30/link-finance-news-storm-cat-energy-corporation-provides-corporate-update.html
- Acquisition of 14,000 Undeveloped Net Acres in Powder River Basin
- Fayetteville Pipeline Start-up Underway
- 2008 Fayetteville Drilling Underway
- Additional Powder River Basin Hedging
- Corporate Presentation for Howard Weil Conference Available on Website
DENVER and CALGARY, Alberta, April 7, 2008 /CNW/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME) today provided a corporate update detailing developments on the company's acreage in Wyoming's Powder River Basin (PRB) and Arkansas' Fayetteville Shale play.
Powder River Basin
Storm Cat has entered into agreement to purchase approximately 14,000 undeveloped net acres in Sheridan County, Wyoming for approximately $5.6 million. The acquisition acreage is located in and around our current operations in the PRB.
The acquisition increases our PRB acreage position to 50,000 net acres. The acquisition adds an additional two years of drilling inventory in the PRB, increasing our total drilling inventory to four years based on current development plans. Furthermore, our internal engineers estimate that the acquisition adds an estimated 50 Billion cubic feet (Bcf) of resource potential to our approximately 60 Bcf of existing proved, probable and possible (3P) reserves in the PRB. The transaction is expected to close on or about April 15, 2008 and will be funded through an amendment to the Company's existing credit facility.
Fayetteville Shale
Construction of the low pressure and high pressure pipelines is essentially complete. Start-up of the pipeline connecting our Fayetteville acreage to the Ozark interstate pipeline is underway. We are currently supplying gas from our operated wells to purge and pack the line for sales. We expect the pipeline to be fully operational in mid-April.
In addition, we have commenced our 2008 drilling program on our Fayetteville Shale acreage. We have now spudded the first five of our 12 well program for 2008.
Hedging
Taking advantage of stronger prices in the Rockies, we recently layered on additional Colorado Interstate Gas ("CIG") indexed-hedges. We now have 80% of our currently forecasted 2008 and 2009 proved developed production in the Powder River Basin hedged at average weighted CIG prices of $7.02/million British thermal units (MMBtu) and $7.22/MMBtu, respectively.
Corporate Presentation
Storm Cat will present at the 36th Annual Howard Weil Energy Conference in New Orleans, Louisiana on Tuesday April 8th and Wednesday April 9th, 2008. The conference is not being webcast, however a copy of the Company's presentation will be available on Storm Cat's website, www.stormcatenergy.com.
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration and development acreage in Canada. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Forward-looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to additional reserves upon completion of the acquisition of the PRB acreage, the completion of the proposed acquisition, proposed drilling activity and infrastructure improvements affecting the Company's operations. Forward- looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward- looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2007.
The SEC has generally permitted oil and gas companies, in filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use the terms "probable" and "possible" to describe volumes of unproved reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the company. While we believe our calculations of unproved drill sites and estimation of unproved reserves have been appropriately risked and are reasonable, such calculations and estimates have not been reviewed by third party engineers or appraisers.
Contacts
William Kent
Director
Investor Relations of Storm Cat Energy Corporation
+1-303-991-5070 Web Site: http://www.stormcatenergy.com
Admiral Bay Updates Revloc Project in the Appalachian Basin, Pennsylvania
Wed Mar 5, 9:36 AM
http://ca.news.finance.yahoo.com/s/05032008/28/link-finance-news-admiral-bay-updates-revloc-project-appalachian-basin-pennsylvania.html
CENTENNIAL, COLORADO--(Marketwire - March 5, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that the seventh well at the Company's initial drilling program was finished on March 3rd, 2008. The Company cored the all the coals in four of the wells and they are presently being desorbed. The Company's has a 75% working interest at present and the partner who paid for the seven wells through running of casing has a 25% working interest. The partner has 60 days from March 3rd to purchase an additional 25% to 50% for US$1 to 2 million. The Company is encouraged by initial results encountered while drilling the wells. Subsequent to the analysis of the core results and the election by the partner, the costs between the Company and the partner are on a "heads up" basis. Admiral Bay will be the operator of the project in all cases. The Revloc Project is located in the hydrocarbon prolific Appalachian basin and is adjacent to strong gas markets in the Northeastern part of the US.
In the Mound Valley project in SE Kansas, the Company has installed a new compressor capable of moving up to 1.1 MMCFGPD. Admiral Bay continues to frac all of the remaining wells in the Excello (Mulky) and Summit carbonaceous shales with good results. To date, the Company has completed 14 wells that have an average initial production of over 25 MCFGPD.
The Company also announces that it has granted 100,000 incentive stock options to an officer as part of his compensation at a price of $0.27, which are exercisable until March 4th, 2010.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com
Torrent Energy Retains Gordian Group to Provide Investment Banking Services
Thursday February 14, 4:05 pm ET
http://ca.us.biz.yahoo.com/iw/080214/0362251.html
PORTLAND, OR--(MARKET WIRE)--Feb 14, 2008 -- Torrent Energy Corporation (OTC BB:TREN.OB - News) today announced it has retained investment banking firm Gordian Group, LLC to assist the Company in raising additional capital and reviewing potential strategic business alternatives. Torrent is seeking to raise $10 million to $15 million in debt financing to fund the next phase of its coal-bed methane project in Oregon's Coos Bay Basin.
John Carlson, president and CEO, said, "Concurrent with our work to establish commercial production in Coos Bay has been a concerted effort to secure new sources of capital, which is necessary to fund a fracing program and other pre-production operations on our Westport project wells. In recent months we have pursued a number of prospective joint-venture opportunities, and have engaged in detailed negotiations with our current and largest financial sponsor, YA Global Investments, L.P. (formerly Cornell Capital). To date we have been unable to conclude a new financing agreement that management and our board of directors believe is in the best long-term interest of the Company and our shareholders. We are optimistic that New York City-based Gordian Group will expose us to a broader range of financing options and partnership opportunities."
Torrent has been unable to meet various obligations called for in the Investment Agreement that the Company entered into with YA Global on June 28, 2006. Details regarding the original agreement and a default notification that Torrent has received from YA Global regarding recent delinquencies are addressed in a Form 8-K filed today by Torrent with the Securities and Exchange Commission. The Company will examine all options, and plans to continue its discussions with YA Global. However, if additional financing is not obtained, the Company expects exploration plans and future operations will be suspended and Torrent may sell non-critical assets.
"We have taken aggressive steps to reduce overhead expenses in recent months, and have been judicious in our efforts to preserve capital," Carlson said. "We remain confident in the strength of our asset portfolio and look forward to working both with Gordian Group and prospective joint-venture partners to establish potential funding or strategic alternatives that will allow us to leverage these assets for the benefit of all our shareholders."
About Torrent Energy Corporation
Torrent Energy Corporation is an exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. The Company's primary objective is to create value for stakeholders by applying strong technical expertise to projects. The current focus of the Company's Oregon subsidiary, Methane Energy Corp., is on the exploration of the Coos Bay Basin project in southwestern Oregon where the Company currently has a land portfolio that includes over 118,000 acres of prospective land. For more information please visit www.torrentenergy.com.
Safe Harbor Statement:
This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to statements concerning potential funds or strategic alternatives, discussions with YA Global and exploration plans and future operations. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, potential delays or obstacles in drilling and/or interpreting data, market fluctuations and spot prices for gas, and the possibility that no commercial quantities of gas are found or recoverable. For more risk factors about our Company, readers should refer to risk disclosure in our most recent 10-K and Form 10-Q filed on Edgar.
Contact:
For further information please contact:
Investor Relations in the U.S.
Pfeiffer High Investor Relations, Inc.
Geoff High
Principal
Phone: 303-393-7044
Email: Email Contact
Torrent Energy Corp.
John Carlson
President & CEO
Phone: 503-224-0072
Email: Email Contact
Investor Relations in Canada
CHF Investor Relations
Cathy Hume
CEO
Phone: 416-868-1079 ext. 231
Email: Email Contact
Source: Torrent Energy
Admiral Bay Updates Mound Valley Project in the Cherokee Basin in Kansas
Mon Feb 11, 4:42 PM
http://ca.news.finance.yahoo.com/s/11022008/28/link-finance-news-admiral-bay-updates-mound-valley-project-cherokee-basin.html
CENTENNIAL, COLORADO--(Marketwire - Feb. 11, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that the inital results of the stimulation program at the Mound Valley project in the Cherokee Basin has shown almost immediate results. Eight wells were fraced in the Excello (Mulky) and Summit shales, between 400 to 450 feet, which resulted in production increasing from approximately 350 to 600 MCFGPD in the last four weeks. The dewatering process is still ongoing at a number of wells, so production is expected to continue to increase. The Company has scheduled six additional fracs this week in the same zones and plans to do three a week until the present wells at the project are all completed the Excello (Mulky) and Summit shales.
The main compressor at the project is capable of moving 1.1 MMCFGPD, so production can continue to increase without the Company adding additional equipment at this time. However, the Company is presently evaluating what additional compression it will need as the stimulation program moves forward and additional wells are added . Admiral Bay is also permitting ten additional drilling locations specifically located along the existing pipelines for easy connection to the pipeline and addition near term sales.
Shiloh and Devon Projects
Wells at the Shiloh and Devon projects are presently being evaluated for stimulating the Excello (Mulky) and Summit shales. At least three wells at Shiloh will be stimulated in these zones in the coming two weeks to test if they will react in a similar manner to the shales at the Mound Valley project.
Drilling at the Revloc Project
The Company is pleased to report that it has finished drilling the third well at its Revloc Project in the Appalachian Basin in Pennsylvania. The Company and its joint venture partner are encouraged by the results of this drilling program. Based on results to date, the Company intends to drill all seven wells that have been permitted at the project. An additional 2,442 contiguous acres have been leased by the partners.
Annual General Meeting Results
The Company is pleased to announce that all items were passed at the Company's recent Annual General Meeting. Directors elected for the ensuing year will be Bill Powers, Steve Tedesco, Michel Del Buono, Greg McMichael and Vern Swanson. Bill Powers was appointed Chairman of the Board, Steve Tedesco remains President & CEO and Robert Carington will remain the Company's CFO.
Bill Powers is the founder of Powers Asset Management, LLC, a significant shareholder of the Company, and is the portfolio manager for the Powers Energy Fund, LP. Mr. Powers is also a Director and Chairman of Petroglobe Inc., an emerging oil and gas company headquartered in Calgary, Alberta, Canada. Prior to founding Powers Asset Management, LLC, he conducted independent research covering the North American Energy and Petroleum sector. Mr. Powers holds a Bachelor of Science in Business Administration from Georgetown University, Washington, DC.
Michel Del Buono serves as a securities analyst for Scion Capital. Prior to joining Scion Capital in July 2004, he was an Engagement Manager at McKinsey & Co., San Francisco, in the Corporate Finance & Strategy practice. At McKinsey, Mr. Del Buono primarily worked with industrial and energy clients to implement investment strategies involving course-changing investments and merger and acquisition transactions and conducted due diligence for major private equity firms in connection with over $1 billion of leveraged buyout transactions. Michel received his Bachelor of Science degree in Systems Engineering with High Honors from the University of Virginia, and he holds three graduate degrees: a Master of Philosophy in Economics from the University of Cambridge, UK; a Master of Science degree in Engineering-Economic Systems from Stanford University; and a Ph.D. degree in Management Science & Engineering, also from Stanford University. Mr. Del Buono is also a Director of PetroGlobe Inc.
The Company also granted 250,000 stock options to Directors and Officers of the Company at a price of $0.21 per share, exercisable for a period of five years until February 8, 2012.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Curt Huber
Admiral Bay Resources Inc.
V.P. Corporate Development
(604) 628-5642 or Toll Free: 1-866-217-1620
(604) 408-9301 (FAX)
Email: info@admiralbay.com
Website: www.admiralbay.com
Admiral Bay to Begin Drilling of Seven Well Test Program at its Revloc Project in the Appalachian Basin
Fri Jan 25, 2:41 PM
http://ca.news.finance.yahoo.com/s/25012008/28/link-finance-news-admiral-bay-begin-drilling-seven-well-test-program.html
CENTENNIAL, COLORADO--(Marketwire - Jan. 25, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that the seven well drilling and test program at its Revloc project in the Appalachian Basin in Pennsylvania will begin next week. This drilling program was originally scheduled for December, but due to significant weather conditions through the month of December in Pennsylvania, the start of drilling has been delayed. The drilling locations have now been built for all seven wells and the rig is in the process of being moved to the first location. Three of the seven wells will be cored for testing, with casing to be run on all wells.
Operational Update
At the Mound Valley project, the Company has begun its recompletion program in the Mulky and Summit shales. The first well completed, the Obrien 2-35, reached peak production within two months, exceeding 100 MCFGPD and then stabilizing at 80 - 100 MCFGPD. A second well, the Obrien 8-35 was completed with a similar frac and after only two weeks is producing at a rate of over 25 MCFGPD. Two additional wells fraced have been placed back on line in the last week and are showing similar results as the Obrien 8-35. All three wells presently have high fluid levels. Production is expected to continue to increase as the fluid levels come down. A further 6 wells are being fraced this week in the project area and will be put back online shortly. As the results continue to come in, and if they remain consistent, the Company will attempt to recomplete all of the existing wells in the Mulky and Summit shales, adding to the existing zones that are open in each well.
At the Shiloh Project, the Company has recompleted a number of the wells in the Riverton Coal. With the indication of success at Mound Valley, the Company is now looking at recompleting some of the wells in the Mulky and Summit shales at this project as well. These shales are also present at the Company's Santa Rita, Devon and Swordfish projects.
Admiral Bay is presently receiving bids for completion of the Chattanooga Shale at its Santa Rita Project. There are a handful of wells in the Cherokee Basin that are currently producing from this shale. The Company is looking at the using slick water fracs on this shale. Testing on these wells is expected to begin over the next couple of months, depending upon service company availability and winter weather conditions in Kansas.
The Company also announces that it has granted 100,000 incentive stock options to an officer at a price of $0.21, exercisable until January 25, 2011.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Curt Huber
Admiral Bay Resources Inc.
V.P. Corporate Development
(604) 628-5642 or Toll Free: 1-866-217-1620
(604) 408-9301 (FAX)
Email: info@admiralbay.com
Website: www.admiralbay.com
Storm Cat Energy Corporation Announces $80.0 Million Credit Facility and Approved 2008 Capital Expenditure Budget
06:00 EST Friday, December 28, 2007
http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20071228&archive=prnews&slug=LAF012
DENVER and CALGARY, Alberta, Dec. 28 /PRNewswire-FirstCall/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME) today announced the closing of a new $80.0 million senior, secured credit facility (the "Credit Facility") with Regiment Capital Advisors, LP and Wells Fargo Foothill, part of Wells Fargo & Company (NYSE: WFC). The proceeds from the Credit Facility will be used by the Company to retire the outstanding principal balance under its previous senior credit facility, including accrued interest, and provide additional liquidity for development of the Company's capital development opportunities.
The $80.0 million Credit Facility has an initial $55.0 million borrowing base which is comprised of a $50.0 million senior revolving credit facility ($25.0 million initial borrowing base; $13.0 million outstanding) and a $30.0 million term loan facility ($30.0 million initial borrowing base; $30.0 million outstanding). The Credit Facility is secured by substantially all of the Company's assets. Outstanding borrowings under the Credit Facility will mature on September 27, 2011, which maturity date may be extended to December 27, 2012 if the Company's existing subordinated convertible notes are fully converted into equity or refinanced prior to September 27, 2011.
The Credit Facility will be used, in conjunction with cash flow from operations, to fund the Company's 2008 Capital Expenditure budget of $38.2 million, recently approved by the Company's Board of Directors. The 2008 Capital Expenditure budget allocates $16.0 million to the Fayetteville Shale to drill eight net wells, $20.0 million in the Powder River basin to drill approximately 120 wells, $1.0 million in Elk Valley to continue ongoing production operations and the remainder on non-project capital expenditures.
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused, on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin, and Arkansas' Arkoma Basin and exploration and development acreage in Canada. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Forward-looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to
proposed new wells and infrastructure improvements affecting the Company's operations. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (http://www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2006.
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
SOURCE Storm Cat Energy Corporation
For further information: William Kent, Director, Investor Relations of Storm Cat Energy, +1-303-991-5070
Development by Stealth
Calgary junior has knack for unconventional resource plays
Lisa Schmidt
Calgary Herald
Thursday, December 20, 2007
As other unconventional gas producers focus on Alberta, Derek Krivak is working up a coal bed methane play on the other side of the country.
The chief operating officer of Stealth Ventures Ltd. is busy with a drilling program in the Stellarton Basin in Nova Scotia, where the company received the province's first coal bed production approval last month.
The Calgary-based junior is also tackling another challenge closer to home with a high-risk shale gas prospect in east-central Alberta called Wildmere.
The Herald recently talked to Krivak about the company's projects and plans.
Q: What has been the reaction to the coal bed project in Nova Scotia?
A: The offshore has been fairly successful on the East Coast, quite successful, so they are very oil and gas savvy, but the onshore development was really something new and as we started the whole process with the government, we had been building upon some of the work that had been done in the past. . . . The government was aware of it and we have been working hand in hand with them as we continue to develop our development.
Our timetable has been fairly aggressive compared to work programs in the past and I think the government recognized that we would like to see commercial gas flowing as soon as we can. On the stakeholder side, we have had fantastic support from the communities where we are doing work.
Q: What does the recent approval from the province mean?
A: Basically for us, it allows us to sell commercial gas. Under our exploration permit, we weren't granted the rights to sell commercial gas. We've solidified our position on the Cumberland basin for the next 10 years, so it gives us security of investment. It gives us that opportunity to sell our gas, start making returns on our exploration dollars, and it is clearly defined what the government is expecting on the go-forward and what we're going to be providing.
Q: How soon do you expect to start production?
A: Production schedules are never as quick as we want them to be. We're continuing to work on the play itself. We're fracing (using high-pressure, high-volume pumps to stimulate wells) within the week.
We would like to be back drilling early next year and I'm hopeful that in 2008 we're selling commercial gas out of the basin. These plays, and I use the term "cracking the technical nut," but once we have cracked that technical nut, we move very aggressively as we continue to develop.
Q: What were the challenges of starting an onshore drilling program in the Atlantic region?
A: From an operational perspective -- the logistics of operating in Nova Scotia -- we're a four-day transport truck ride from Alberta itself. So if you look at that from a logistical point of view, we don't just pick up the phone and say, "Get me a work-over rig or get me this." It has to be either there or on the road in advance of anticipating any problem.
Initially we started with a rig out of Ontario. We felt that rig was the only capable one in Eastern Canada that could do our work and we ended up actually railing Precision 176 in from Western Canada. It was 32 carloads to rail this rig down at a tremendous expense to us.
Q: What about your exploration programs in Alberta? What kind of results are you seeing?
A:We're having our best exploration success in Wildmere. It's around the town of Vermilion. We have been targeting the Colorado group shales. It's a biogenic shale gas play that had been attempted by numerous companies throughout the years and a very technically driven play. Everyone knew the gas was contained within these shales, drilling to deeper targets, but the problem was always trying to get it out. So we've had tremendous success on that play and I believe now we'll have, depending on weather, by year-end we're looking at having 30 to 35 of our wells to be tied in and producing.
We're having the same issues that help us sell gas at higher prices but cause difficulties operating out of the field and getting pipelines constructed . . . It's a catch-22.
Q: Is it difficult to take on these technically challenging projects at a time when natural gas prices are weak?
A: Our specialty in this company is to target unconventional reservoirs, so that's kind of our niche forte. The difficulties are in getting the production. There's usually some technical barrier that needs to be overcome to get to that producing point. Once we're in a production scheme, I calculate my economics the same way that any other company calculates.
We look at our rates of return based on our monies invested and our netbacks from the price of gas.
Q:With a dim outlook for prices for all natural gas producers, do these types of plays present a special challenge for unconventional producers?
A: We're forecasting $7 to $8 gas throughout 2008 with, of course, the obvious low points, but overall an average of about $7 an mcf corporately is what we're using right now for an overall number throughout 2008, which again isn't fantastic but we don't think it is that bad, as long as the lows don't get too low. We ride those out for the higher points throughout the year.
We don't expect the gas price to be great in 2008 but we can still continue on with the play. Our reserve life far exceeds any typical shallow gas play, so for us, it's about positioning not only in the next six to 12 months but, looking years in advance.
Q: How would you characterize the progress of the unconventional gas industry in Alberta?
A: I think that brings in a bigger picture of onshore North American supplies. If you look at North America and where we're burning gas and where it's coming from, I would almost point down to the U.S. and look at their onshore domestic production base -- a huge amount of gas is coming from the unconventional sector.
Our conventional low-hanging fruit reserves, if you will, they are drying up, there's no question. These plays need positioning. It's not like you can just go down and drill a new play and turn on the tap. You need to invest the dollars and cents from a technical perspective and position them that way.
Q: What will be the impact of the royalty changes recently announced by Alberta on your company?
A: For us corporately, and our gas field in the Wildmere area, we have long reserve life index on those wells and they are lower productivity. Corporately as it sits right now, we are standing to gain five to eight per cent on our bottom line with the production profile of these wells.
Overall, from a gas producer perspective, I think it adds to that double whammy. We're seeing lower gas price and a higher Canadian dollar . . . and now I would say a large part of the gas producers in Western Canada stand to pay more royalty. You are getting paid less for the product and paying more royalty. It's just bad timing.
lschmidt@theherald.canwest.com
© The Calgary Herald 2007
At .11 I was ready to load the shotgun
should have loaded at .11 i guess
Maybe they are going to do a high wire act this year?
V 2007-12-14 12:21:00 0.15 0.01 4,566,500 150 Trapeze 150 Trapeze XK
Canadian Spirit Resources Inc. Announces Approval of Additional Schemes at Farrell Creek, B.C.
Mon Dec 17, 6:00 AM
http://ca.news.finance.yahoo.com/s/17122007/28/link-finance-news-canadian-spirit-resources-inc-announces-approval-additional-schemes.html
CALGARY, ALBERTA--(Marketwire - Dec. 17, 2007) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE: SPI.V) is pleased to announce that it has obtained government approval for two additional experimental schemes in the Company's Farrell Creek project area in northeast British Columbia. These schemes cover a total of nine sections of Gething Formation rights on the eastern portion of its holdings - five sections of lands originally acquired by CSRI and an additional four sections in which CSRI has now acquired a 100% working interest from another energy company, subject to a non-convertible royalty. Each of these experimental schemes will require the drilling of a well by October 2008 for the company's interest in the lands to be further extended. Subject to Board and regulatory approvals, it is the Company's intention to drill these commitment wells as part of its 2008 development drilling program.
On July 31, 2007 the Government of British Columbia announced a Net Profit Royalty Program to primarily encourage development of unconventional gas (coalbed, shale and tight sand gas) or remote conventional gas resources in the province. This program, with low initial royalty and capital recovery features, will significantly enhance the economic threshold of unconventional natural gas projects such as Farrell Creek and is expected to result in accelerated capital investment in the province. Applications for approval under this program are expected to be accepted beginning in 2008. The Company believes that the Farrell Creek project will qualify under this program which has been used in the development of the Company's Farrell Creek economic model. A summary of the economics of the Farrell Creek project can be found on the Company's website under www.csri.ca "Investor Relations" - Corporate Presentation.
CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. The Company has identified a 1.8 tcf resource play, assembled a unique, high working interest land position in approximately 40,000 gross acres in northeast British Columbia and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.
On behalf of the Board of Directors,
CANADIAN SPIRIT RESOURCES INC.
Phillip D.C. Geiger, President & Chief Operating Officer
OTC Bulletin Board Symbol (Foreign) "CSPUF"
The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts
Phil Geiger
Canadian Spirit Resources Inc.
(403) 539-5005
(403) 262-4177 (FAX)
Email: phil.geiger@csri.ca
Don Gardner
Canadian Spirit Resources Inc.
(403) 539-5005
(403) 262-4177 (FAX)
Email: don.gardner@csri.ca
Website: www.csri.ca
Torrent Energy Reports Progress on Financing Efforts and Joint Venture Discussions
Friday December 14, 8:00 am ET
http://ca.us.biz.yahoo.com/iw/071214/0340135.html
PORTLAND, OR--(MARKET WIRE)--Dec 14, 2007 -- Torrent Energy Corporation (the "Company") (OTC BB:TREN.OB - News) today announced that it is making progress on its efforts to establish additional sources of capital for the advancement of its Coos Bay coal-bed methane project. Management said the Company also is in detailed discussions with a prospective joint venture partner that has expressed interest in participating on the project.
John Carlson, president and CEO, said, "While the establishment of a new financing package is taking longer than anticipated, we are making meaningful progress and are optimistic that our efforts to finalize a transaction will be successful. We obviously are working to negotiate a transaction that is in the best interest of Torrent and its shareholders. While we cannot provide a definitive timetable for the completion of a funding arrangement, we will announce the results of these efforts as soon as possible."
About Torrent Energy Corporation
Torrent Energy Corporation is an exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. The Company's primary objective is to create value for stakeholders by applying strong technical expertise to projects. The current focus of the Company's Oregon subsidiary, Methane Energy Corp., is on the exploration of the Coos Bay Basin project in southwestern Oregon where the Company currently has a land portfolio that includes over 118,000 acres of prospective land. For more information please visit www.torrentenergy.com.
Safe Harbor Statement:
This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to that we are optimistic that our efforts to finalize a financing transaction will be successful. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, potential delays or obstacles in drilling and/or interpreting data, market fluctuations and spot prices for gas, and the possibility that no commercial quantities of gas are found or recoverable. For more risk factors about our Company, readers should refer to risk disclosure in our most recent 10-K and Form 10-Q filed on Edgar.
Contact:
For further information please contact:
Investor Relations in the U.S.
Pfeiffer High Investor Relations, Inc.
Geoff High
Principal
Phone: 303-393-7044
Email: Email Contact
Torrent Energy Corp.
John Carlson
President & CEO
Phone: 503-224-0072
Email: Email Contact
Investor Relations in Canada
CHF Investor Relations
Cathy Hume
CEO
Phone: 416-868-1079 ext. 231
Email: Email Contact
Source: Torrent Energy Corporation
Admiral Bay Announces Drilling to Begin at Its Revloc Project in the Appalachain Basin in Pennsylvania
Wed Dec 5, 11:50 AM
http://ca.news.finance.yahoo.com/s/05122007/28/link-finance-news-admiral-bay-announces-drilling-begin-its-revloc-project.html
CENTENNIAL, COLORADO--(Marketwire - Dec. 5, 2007) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) is pleased to announce that it expects to begin drilling operations at its 16,000 acre Revloc Project in the Appalachian Basin, in Pennsylvania in December. Pursuant to its previously announced farm out agreement, Admiral Bay will operate the drilling of 7 test wells with its 25% WI partner paying 100% of the costs. Four of the wells will be cored over 500 feet to collect coals for desorption, adsorption and mechanical properties to determine gas content and the best method to complete the wells. Five of the wells form a pilot project that is located next to an existing pipeline. Upon evaluation of the test results, the Company's partner will have an opportunity to increase its working interest in the project. Future operations will be heads up thereafter, with Admiral Bay remaining operator.
Update of Operations
The following is an update of Admiral Bay's operations since completion of its expanded credit facility, as announced in the news release of September 7, 2007.
Currently the majority of the Company's production continues to come from the Shiloh project, with the Mound Valley project beginning to show meaningful increases in production due to new wells coming online and older wells being optimized. Current gross daily production from all projects has been averaging 2.7 MMCFPD.
At the Shiloh project, the Company has placed 10 new wells on line with an average initial production (IP) of 20 MCFGPD, which is in line with previous completions results. In addition, the Company has been working to improve its gathering system, including upgrading certain booster compressors and looping lines to lower field pressure, and catching up on well maintenance that was neglected earlier in the year due to funding issues. In addition, the Company has lowered lease operating costs by replacing its contract field personnel with Company employees and improved the field supervision with the previously announced hiring of Steven Littell as Operations VP. Gross production in Shiloh has been below previous peak levels, due to the gathering system and maintenance issues mentioned above, but is currently at approximately 2.1 MMCFPD and climbing.
At the Mound Valley project, the Company has put on 11 new wells on line that are averaging over 15 MCFGPD which is a significant improvement over the average for existing wells. Gross production at Mound Valley has increased to almost 400 MCFGPD and should continue to increase as 11 additional wells that are awaiting completion are brought online.
At the Devon project, the Company is working on new gathering system upgrades that will open two new areas to development and allow three new wells that tested at with a combined rate of over 130 MCFGPD to come online. Total production through the Bourbon County Pipeline ("BCPL") is currently between 700-800 MCFGPD. The Company nets between 20-25% of the total production in the BCPL between its equity gas and its share of third party gas.
Testing of the Chattanooga Shale at the Santa Rita Project
In the first quarter of 2008, Admiral Bay plans to begin testing and completing wells in the Chattanooga Shale and the coals at the Santa Rita Project. The Company previously drilled and cored 2 wells at the project, in which the Company holds a 100% working interest. Admiral Bay is in the process of developing completion strategies based on the core results. Presently, there are two known wells producing out of the Chattanooga in the Cherokee Basin on the Oklahoma side which the Company believes have similar reservoir characteristics. The Chattanooga Shale is also actively being pursued by another operator just to the west of the Company's Project.
Updated Reserve Report
The Company recently received an updated independent reserve report from Norwest Questa Engineering Corporation of Golden, Colorado. The report covers the Company's unconventional gas projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. In keeping with the Company's focus of completing existing wells during the year, Proved Developed Producing Reserves (PDP) in Kansas increased by 45% to 11.6 Bcf, as at the Company's July 31, 2007 year-end. During this period, Total Proved Reserves and Probable Reserves remained constant at 42.0 Bcf (net of a reclassification of lease use gas) indicating that the locations that were brought online were replaced with new locations. Based on forecast prices, the PV-10 value of Proved plus Probable Reserves was US$108.9 million. All reserve numbers are net after royalties. The total 3P Reserves were 175.8 Bcf with Possible Reserves declining due to certain acreage, primarily in the Swordfish Project, expiring during the year. Leases on this acreage were not renewed as the Company chose to utilize its capital for development of its existing producing projects instead.
Capital Expenditures
For the 2007 fiscal year Admiral Bay had capital expenditures of $9.8 million, down from the previous year due to delays in receiving new funding while the Company was engaged in the strategic alternatives process during the second half of fiscal 2007. The Company had a three year average All-in Finding Cost of US$1.34/Mcf, based on an overall capital expenditure for the three year period of US$44.8 million (including US$14.4 million for new land acquisitions). The three year average full cycle Finding & Development cost (including future development costs of $16.5 million) was US$1.83/Mcf.
Borrowing Base Increased on Credit Facility
With the delivery of its reserve report, the borrowing base on the Company's credit facility has been increased by $2.5 million. When drawn, the funding will be used to continue development and drilling activities on up to 50 completion/re-frac/new drilling opportunities in the Shiloh, Mound Valley and Devon producing areas.
Steve Tedesco, President and CEO of Admiral Bay commented, "This reserve report and our recent completion activities show that we are taking steps to high grade our asset base. Our three year average finding costs are very competitive and the increase in Proved Developed Producing Reserves as well as the stable Proved + Probable Reserves demonstrates how we continue to high-grade our asset base. In addition, we are beginning activity on two promising new areas that hold significant upside potential for increasing the Company's proved reserve base. With our new credit facility in place, we are also pursuing acquisition opportunities to accelerate production growth in our core areas."
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Curt Huber
Admiral Bay Resources Inc.
V.P. Corporate Development
(604) 628-5642 or Toll Free: 1-866-217-1620
Email: info@admiralbay.com
Website: www.admiralbay.com
Torrent Energy Issued Final Water Disposal Permit for Coos Bay Coal-Bed Methane Project
Monday November 26, 1:51 pm ET
http://ca.us.biz.yahoo.com/iw/071126/0332343.html
PORTLAND, OR--(MARKET WIRE)--Nov 26, 2007 -- Torrent Energy Corporation (the "Company") (OTC BB:TREN.OB - News) today announced it has received final approval of the National Pollutant Discharge Elimination System Waste Discharge Permit (the "NPEDS permit") from Oregon State's Department of Environmental Quality (DEQ). Issued to the Company's wholly owned subsidiary, Methane Energy Corp. ("Methane"), the NPDES permit goes into effect immediately. The permit will allow Methane to commence planning and completion of a stimulation program on the Westport project wells by enabling the economic treatment and disposal of produced waters to a maximum daily volume of 100,000 gallons (2380 bbls.).
Torrent's president and CEO, John Carlson, stated, "Securing the NPDES permit represents an important milestone for Methane, and positions us to proceed with our financing efforts and the environmentally sound development of our Coos Bay coal-bed methane (CBM) deposit. We now intend to move as quickly as possible to establish a commercial CBM operation in Coos County."
"Development of a water gathering system, treatment facilities, and outfall planning and construction can now proceed in preparation for stimulation operations," Carlson added. "Our first step will be to initiate construction on the previously approved water outfall facilities and to place orders for the requisite filtration equipment."
The NPDES permit contains rigorous provisions for the treatment, disposal and monitoring of the discharge water stream. Methane will be responsible for maintaining high standards of quality control on all aspects of the disposal program and will be the steward for all environmental issues related to its operation. The DEQ will be responsible for oversight on the NPDES permit.
"This permit is a victory for both Methane and the area's environmental concerns, and demonstrates the strong cooperative partnership that exists between Coos County and the Company," Carlson said. "On a personal note, we would like to commend all the dedicated Methane employees, staff at the various regulatory agencies, members of various environmental groups and especially, the residents of Coos County, for cooperatively working toward an acceptable and workable solution to the future disposal of produced water. This solution will ensure the project meets required economic hurdles, and, more importantly, provides for an ongoing relationship between all vested interests. We intend to clearly demonstrate both our willingness and commitment to meeting the stringent treatment and monitoring conditions of the permit."
About Torrent Energy Corporation
Torrent Energy Corporation is an exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. The Company's primary objective is to create value for stakeholders by applying strong technical expertise to projects. The current focus of the Company's Oregon subsidiary, Methane Energy Corp., is on the exploration of the Coos Bay Basin project in southwestern Oregon where the Company currently has a land portfolio that includes over 118,000 acres of prospective land. For more information please visit www.torrentenergy.com.
Safe Harbor Statement: This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to, that the water disposal plan approval allows the Company to proceed with our financing efforts, that the water disposal plan approval allows the Company to now move forward on their stated mission of moving the Coos Bay field from the development stage into the commercial production stage; that with the issuance of this permit, we are now ready to proceed with our field development/production plans, including fracture stimulation and pipeline tie-in to the Coos County gas transmission system.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling and/or interpreting data, market fluctuations and spot prices for gas, and the possibility that no commercial quantities of gas are found or recoverable. For more risk factors about our Company, readers should refer to risk disclosure in our most recent 10-K and Form 10-Q filed on Edgar.
Contact:
For further information please contact:
Investor Relations in the U.S.
Pfeiffer High Investor Relations, Inc.
Geoff High
Principal
Phone: 303-393-7044
Email: Email Contact
Investor Relations in Canada
CHF Investor Relations
Cathy Hume
Account Manager
Phone: 416-868-1079 ext. 231
Email: Email Contact
Torrent Energy Corp.
John Carlson
President & CEO
Phone: 503-224-0072
Email: Email Contact
Source: Torrent Energy
Torrent Energy Provides Update on Water Permit Process and Operations
Monday November 19, 8:00 am ET
http://ca.us.biz.yahoo.com/iw/071119/0330197.html
PORTLAND, OR--(MARKET WIRE)--Nov 19, 2007 -- Torrent Energy Corporation (the "Company") (OTC BB:TREN.OB - News) today confirmed that the public comment period has been successfully completed with respect to the water disposal permit for its coal-bed methane natural gas project in Coos Bay, Oregon operated by its wholly-owned subsidiary Methane Energy Corp. ("Methane"). The last step in the water permitting process is the final approval of the National Pollutant Discharge Elimination System Waste Discharge Permit (the "NPDES permit") by Oregon State's Department of Environmental Quality (DEQ). This approval is expected in the coming days. Upon receipt of the permit, the Company can redirect its attention toward field activities and moving the Coos Bay project from the development stage into the commercial production stage.
ADVERTISEMENT
As part of the now complete public comment process, public informational meetings were held separately by both Methane and the DEQ in Coos County. At each of these meetings, Methane's testing procedures and water management plan were fully vetted and the public was able to question senior managers from both organizations. Written comments were also solicited and technical responses have been prepared by Methane and submitted to the DEQ for final disposition.
The final issuance of the NPDES permit will allow the Company to commence and complete its planned frac program on the Westport project wells by enabling an effective management system to treat and economically dispose of both frac and produced waters to a maximum daily volume of 2,000 barrels per day. This treatment, disposal and monitoring will be undertaken subject to the rigorous conditions imposed by the NPDES.
Torrent's president and CEO, John Carlson, stated, "The permitting process has, at times, seemed never-ending. Nevertheless, we believe it is the most critical element required to establish a commercial CBM operation in Coos County. Without the ability to treat and dispose of frac and produced water both environmentally responsibly and cost-effectively, we would not likely be able to develop an economic revenue base from this project. Torrent remains committed to doing things right and clearly this has pushed back our timetable, but our prudence has not altered our course for the future. Following this permit process to its conclusion before making additional capital expenditures for stimulating the wells and installing gas gathering and water gathering infrastructure has been a challenge that the Company is, again, committed to. At the same time, extensive planning for these future activities and expenditures has been underway behind the scenes during the water permitting process and we shall move quickly on them upon receipt of the final NPDES permit."
The Company has filed its second quarter financial statements, which reflect diminishing cash balances. Since late August 2007, Torrent has been pursuing new strategic sources of equity capital to fund additional development in the Westport project area as well as Torrent's Washington project. The Company is currently reviewing one specific financing option that has been offered, and continues discussions with a number of other capital sources with the goal to bring in new capital by the end of November. "We are clearly in need of additional financing, and we plan to find the best capital solution to provide us with the ability to maintain our operations and serve the interests for our existing shareholder base."
About Torrent Energy Corporation
Torrent Energy Corporation is an exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. The Company's primary objective is to create value for stakeholders by applying strong technical expertise to projects. The current focus of the Company's Oregon subsidiary, Methane Energy Corp., is on the exploration of the Coos Bay Basin project in southwestern Oregon where the Company currently has a land portfolio that includes over 118,000 acres of prospective land. For more information please visit www.torrentenergy.com.
Safe Harbor Statement: This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to, that the water disposal plan approval allows the Company to now move forward on their stated mission of moving the Coos Bay field from the development stage into the commercial production stage; that the final permit is scheduled to be completed and issued to Torrent Energy in the coming days; that with the issuance of this permit, we are now ready to proceed with our field development/production plans, including fracture stimulation and pipeline tie-in to the Coos County gas transmission system; and that we will be able to bring in new capital by the end of November.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling and/or interpreting data, market fluctuations and spot prices for gas, and the possibility that no commercial quantities of gas are found or recoverable. For more risk factors about our Company, readers should refer to risk disclosure in our most recent 10-K and Form 10-Q filed on Edgar.
Contact:
For further information please contact:
Investor Relations in the U.S.
Pfeiffer High Investor Relations, Inc.
Geoff High
Principal
Phone: 303-393-7044
Email: Email Contact
Investor Relations in Canada
CHF Investor Relations
Cathy Hume
Account Manager
Phone: 416-868-1079 ext. 231
Email: Email Contact
Torrent Energy Corp.
John Carlson
President & CEO
Phone: 503-224-0072
Email: Email Contact
Source: Torrent Energy
EBY hanging in there.
Another slant on the royalty issue in the following article.
Forest Gate to buy interest in Emerald Bay CBM project
2007-11-13 09:16 MT - News Release
Also News Release (C-EBY) Emerald Bay Energy Inc
Mr. Michael Judson of Forest Gate reports
FOREST GATE TO DRILL FOUR COALBED METHANE WELLS
Forest Gate Resources Inc. has entered into a joint venture agreement with Emerald Bay Energy Inc. to acquire a working interest in an Alberta property, which potentially hosts natural gas in coal-bed methane.
Leases have been acquired by the consortium for the drilling of four coal-bed methane test wells in the Nevis area, located in central Alberta. All four wells are scheduled to be drilled by the end of the fourth quarter of 2007. Forest Gate's commitment to the four-well drilling program is fully funded.
Four Nevis wells will be drilled in the Horseshoe Canyon coal-bed methane fairway and completed consecutively to a total depth of 425 metres. These proposed locations are directly offsetting highly productive existing coal-bed methane producers. Offset wells have had initial daily production rates between 125,000 and 400,000 cubic feet of gas per day.
The Horseshoe Canyon has the largest deposits of coal-bed methane in Canada. Estimates for the amount of gas from coal-bed methane that can be recovered from this area in its entirety are between six trillion and 15 trillion cubic feet.
PARTNERS -- NEVIS AREA LICENCE
Partner Before payout After payout
Emerald Bay Energy 45% 28%
Just Freehold Energy (JFEC) 44% 22%
Forest Gate Resources 10% 5%
The Nevis property is located in Twp 39, Rge 22 W4M, approximately 22 miles east of Red Deer, Alta.
The project operator is Emerald Bay Energy.
Just Freehold Energy is another partner in the consortium. The private Canadian energy company is focused on finding and developing oil and natural gas rights owned by individual freehold owners in a just and economically efficient manner. JFEC uses leases drafted by the Freehold Owners Association, as opposed to energy industry lawyers, which are designed to fairly balance the rights of the freeholder with those of the energy company. One of the main advantages of using this type of lease for Forest Gate and its partners is that royalties are capped at 28 per cent and are therefore not affected by the rising royalties in Alberta.
"We are excited to be working with Emerald Bay," said Michael Judson, president and chief executive officer of Forest Gate. "We believe they understand this geological environment very well and success here would create cash flow and could lead to other interesting new projects."
We seek Safe Harbor.
Storm Cat Energy Corporation Provides Operations Update; Announces Third Quarter 2007 Results
Thu Nov 8, 7:03 AM
http://ca.news.finance.yahoo.com/s/08112007/30/link-finance-news-storm-cat-energy-corporation-provides-operations-update-announces.html
-- Total Current Production at 12.2 Million Cubic Feet Per Day Net
-- Three Fayetteville Shale Wells Drilled; Two Completed
-- Pipeline Agreement in Place for Fayetteville Acreage
DENVER and CALGARY, Alberta, Nov. 8 /CNW/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME) today provided an operations update and announced third quarter 2007 financial and operating results.
During the quarter the Company drilled 28 wells bringing the total number of wells drilled during the first nine months of 2007 to 67. Current net production is 12.2 million cubic feet per day (MMcf/d) from producing properties in Wyoming's Powder River Basin (PRB) and from the Arkoma Basin in Arkansas (Fayetteville Shale). Total net sales increased 8.5% quarter-to- quarter to 808.2 million cubic feet (MMcf) during the third quarter 2007 from 745.0 MMcf in the second quarter 2007. PRB production growth in the third quarter was adversely impacted by force majeure production curtailments and abnormally low Rockies gas prices. Year-over-year production increased 117.6% to 808.2 MMcf in the third quarter 2007 from 371.5 MMcf in the second quarter 2006.
Operations Update (all figures in U.S. Dollars)
During the third quarter, Storm Cat built upon its first half production growth, but was impacted negatively by production curtailment on a portion of its PRB gas production due to force majeure events on important Rocky Mountain pipeline infrastructure and abnormally low Rockies gas prices. The force majeure events related to a September 16, 2007 fire on the Cheyenne Plains gas pipeline which reduced Rockies take-away capacity, further deteriorating Rockies gas prices. In light of these events, the Company partially curtailed its production and activity in the PRB. The pipeline operator returned the pipeline to full capacity on November 7, 2007.
Curtailed production from the PRB at September 30, 2007 was 14.7 MMcf/d gross and 7.7 MMcf/d net. Coming out of curtailment, production currently is 21.5 MMcf/d gross and 11.9 MMcf/d net. Because of the price environment and curtailment, Storm Cat made the decision to delay additional well completions and pipeline hookups during the third quarter. Barring those elections, the Company estimates that production from the PRB would currently be 23.7 MMcf/d gross and 13.4 MMcf/d net. The Company drilled and completed 25 wells during the quarter bringing its year-to-date total to 63. The total well count is now 380 wells, of which 339 are Company-operated. Storm Cat expects to add approximately 44 additional wells during the remainder of 2007 and exit the year producing approximately 17.0 net MMcf/d in the PRB.
Storm Cat successfully drilled and began completion operations during the third quarter on the first two of its three Company-operated horizontal wells budgeted in 2007 in the Fayetteville Shale. The Company hydraulically fractured both the Kamalmaz 1-13H well and the Vaughn 1-18H well, employing approximately 60,000 barrels of fluid and 1.25 million pounds of sand over five stages per well. The Company is presently conducting post-frac well cleanup and is encouraged by gas rates observed in the limited flow-back period. The third well, the Files 1-12H, commenced drilling during the third quarter. The Company has subsequently completed drilling to its planned depth and ran casing. Completion of the Files well is scheduled in the fourth quarter. In addition, in early October, Storm Cat reached an agreement with an unrelated third party gatherer for the construction of field gathering, compression and a transportation lateral to connect to the Ozark pipeline. Subject to retained rights of the parties in the agreement, the pipeline is expected to be completed and operational in March 2008. Finally, current net production associated with the Company's non-operated wells in the play is 0.3 MMcf/d net.
In Elk Valley, located in South-Eastern British Columbia, the Company has nine producing wells, including five wells drilled in 2006, in the de-watering and evaluation stage. The Company remains encouraged by observed water and associated gas production rates and expects to disclose its progress on the project at year-end 2007.
In Alberta, during the third quarter, the Company drilled and completed one well targeting the Ellerslie Sand. The well is undergoing production and pressure testing. At present, the Company is evaluating additional prospects in the immediate area.
Storm Cat Chief Executive Officer, Joe Brooker, said, "During the quarter we advanced our Fayetteville Shale acreage completing two of our three 2007 budgeted wells. Further, with a pipeline agreement in place in the Fayetteville we should begin to realize cash flow from this area by late first quarter 2008. Despite the difficult price environment and curtailments in the PRB we anticipate delivering on the expectations for both year end rate and reserves in the PRB. Rate, cash flow and reserves are the key components that will create shareholder value"
Storm Cat President and Chief Operating Officer Keith Knapstad commented, "From an operational stand point the third quarter represented continued progress in our three core areas. In the PRB, we are well positioned to ramp production into year-end and achieve our estimated exit rate of 17.0 net Mmcf/d. We reached the goals we set in the Fayetteville having now drilled and completed Company operated wells. Post stimulation we saw favorable gas rates during limited flow-back periods. In Elk Valley, we continue to be encouraged by water and gas production rates. However, until we achieve and maintain lower water levels in the wellbores, allowing unrestricted production flow from all producing coal seams, we will not be able to fully evaluate the commercial viability of the project."
Financial Overview (all figures in U.S. Dollars)
For the quarter ended September 30, 2007 Storm Cat reported oil and gas sales revenue of $4.2 million, a 91.7% increase over third quarter 2006 sales of $2.2 million. Sales volumes increased to 808.2 MMcf for the third quarter 2007 from 371.5 MMcf in the second quarter 2006, an increase of 117.6%. Increased volumes are attributed primarily to successful development of our properties. The Company's average sales price for natural gas decreased 11.9% to $5.17 per thousand cubic feet (Mcf) in the third quarter 2007 from $5.87 per Mcf in the third quarter 2006 inclusive of hedges.
The Company reported a net loss of $30.7 million, or $0.38 per share, for the third quarter 2007, as compared to a net loss of $3.8 million, or $0.05 per share, in the same period in 2006. The extraordinary net loss is primarily attributable to a $25.0 million impairment on the Company's U.S. assets and a $2.8 million impairment on the Company's Canadian assets.
The first impairment charge of $25.0 million relates to the ceiling test comparing the U.S. Full Cost pool to discounted future net revenues of proved reserves in the PRB using flat pricing based on the September 30, 2007 market price for natural gas of $1.9855 per MMBtu at the Colorado Interstate Gas (CIG) - Mainline index including any contribution of hedging on future net revenues. At that date, the U.S. Full Cost pool exceeded the ceiling value by $25.0 million and the Company elected to take an impairment. The SEC permits a re-measurement, under certain criteria, if prices recover subsequent to the end of the reporting period and before filing the quarterly report. While the market price did, in fact, exceed the price necessary to avoid an impairment for a short time during such period, the Company is of the opinion that a recovery of price was not sustained sufficiently to warrant avoidance of the impairment. There are indicators suggesting a sustained improvement of market prices in the Rocky Mountain producing region upon the commencement of natural gas deliveries on the Rockies Express pipeline that is schedule to commence service in January 2008, however, the timing of such recovery is not within the price recovery measurement time constraints as set by the SEC.
The second impairment charge of $2.8 million is attributable to the Company evaluating a portion of its Alberta, Canada unproved properties using the lower of cost or market test.
Lease operating expenses increased approximately $1.08 million to $1.73 million in the third quarter of 2007 from $0.65 million the third quarter of 2006. This increase resulted primarily from additional wells added through the Company's successful drilling program and from an acquisition the Company made in the third quarter of 2006. On a per Mcf basis, lease operating expenses increased by 90.7% from the third quarter of 2006 to the third quarter of 2007. The higher costs are primarily related to fuel and generator costs associated with new wells in development areas where the electrical infrastructure is not yet installed. These higher operating costs are anticipated to be short lived as the electrical grid is built out to the well locations.
Salaries and related benefits and taxes in the third quarter of 2007 totalled $0.80 million. Additionally the Company recorded a write-down for bad debt reserve of $0.08 million and $0.52 million for amortization of deferred financing costs was reclassified from general and administrative expense to other expense. Stock-based compensation decreased by $1.37 million from the three months ended September 30, 2006 to the same period in 2007 due to the full expensing of legacy stock options in 2006 and the reclassification of certain stock-based compensation from the equity method to the liability method in 2007. In the third quarter of 2006, $0.46 million of internal costs were capitalized. Beginning in 2007, Storm Cat discontinued the capitalization of internal costs.
Weighted average shares outstanding for the third quarter 2007 increased to 81.0 million as compared to 68.6 million in the third quarter 2006. The increase in average shares outstanding is attributed to the private placement the Company completed in Canada in September 2006 as well as the exercise of outstanding warrants and options.
Storm Cat's fixed-price natural gas hedges are summarized as follows (As of 10/4/07):
2007 - 783,666 MMbtu at weighted average price $6.18 CIG
2008 - 3,941,617 MMbtu at weighted average price $6.91 CIG
2009 - 2,368,452 MMbtu at weighted average price $7.33 CIG
2010 - 1,298,061 MMbtu at weighted average price $6.91 CIG
Chief Financial Officer Paul Wiesner commented "The third quarter was extremely challenging due to record low price realizations per Mcf in the Rockies. We have 80% of our mid-year 2007 forecasted PDP production stream hedged at attractive CIG pricing for the remainder of 2007 and all of 2008. Although we are bullish regarding long term natural gas prices, hedging allows us to protect our cash flow in the short term so we can continue to develop our core areas. The impairment of $25.0 million is a required calculation of the full cost accounting method that requires flat pricing; this quarter's price being $1.9855. Strip pricing at the end of the quarter would have yielded a value in excess of our book basis and is in our opinion, more indicative of the discounted value of the future cash flows from the properties."
Financial and operations tables accompany this release. Please reference the Company's filing on Form 10-Q with the Securities and Exchange Commission and with Canadian securities regulators on SEDAR for important notes to the financial statements.
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused, on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin, and Arkansas' Arkoma Basin and exploration and development acreage in Canada. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Forward-looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to proposed new wells, production rate and reserves expectations, commodity prices and new sources of cash flows, and infrastructure improvements affecting the Company's operations. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (http://www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2006.
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
SELECT OPERATING DATA (UNAUDITED)
Select Operating Data: Three Months Ended September 30
2007 2006
Net Sales Volume:
Natural Gas (MMcf) 808.2 371.5
Natural Gas Sales $4,181 $2,181
Average Sales Prices:
Natural Gas (per Mcf) $5.17 $5.87
Additional Data (per Mcf):
Gathering and transportation $0.72 $1.05
Operating expenses:
Lease operating expenses $1.77 $0.93
Ad valorem and property taxes $0.37 $0.81
Impairment $34.36 $5.38
Depreciation, depletion, amortization and
accretion expense $3.24 $2.26
General and administrative expense,
excluding stock-based compensation and
capitalized overhead $1.49 $4.83
Stock-based compensation $(0.72) $2.12
CONSOLIDATED BALANCE SHEETS
(Stated in U.S. Dollars and in thousands, except per share amounts)
September 30, December 31,
2007 2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $4,745 $5,299
Accounts receivable:
Joint interest billing 1,548 1,932
Revenue receivable 630 2,121
Fair value of derivative instruments 3,637 2,670
Prepaid costs and other current assets 3,575 1,445
Total current assets 14,135 13,467
PROPERTY AND EQUIPMENT (Full Cost Method), at cost:
Oil and gas properties:
Unproved properties, net of impairments 57,911 54,873
Proved properties 57,048 46,446
Less accumulated depreciation, depletion,
and amortization (10,509) (4,764)
Oil and gas properties, net 104,450 96,555
Other property 1,160 1,057
Accumulated depreciation (684) (408)
Total other property, net 476 649
Total property and equipment, net 104,926 97,204
OTHER ASSETS
Restricted cash 378 511
Debt issuance costs, net of accumulated
amortization 2,895 0
Fair value of derivative instruments 1,574 782
Total other assets 4,847 1,293
Total assets $123,908 $111,964
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,393 $7,302
Revenue payable 890 2,063
Accrued and other liabilities 5,394 10,011
Flow-through shares liability 0 1,233
Notes payable 0 7,500
Taxes payable 657 0
Interest payable 399 952
Stock-based compensation liability 608 0
Total current liabilities 10,341 29,061
Asset retirement obligation 1,541 1,871
Ad valorem taxes payable 539 0
Bank debt 29,219 19,350
Series A & B convertible notes 50,195 0
Total non-current liabilities 81,494 21,221
Total liabilities 91,835 50,282
STOCKHOLDERS' EQUITY
Common stock 69,756 69,518
Additional paid-in capital 4,746 4,910
Accumulated other comprehensive income 10,848 3,877
Accumulated deficit (53,277) (16,623)
Total stockholders' equity 32,073 61,682
Total liabilities and stockholders' Equity $123,908 $111,964
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Stated in U.S. Dollars and in thousands, except per share amounts)
Three Months Ended
September 30
2007 2006
NATURAL GAS REVENUE: $4,181 $2,181
OPERATING COSTS:
Gathering and transportation 581 390
Operating expenses 1,733 645
General and administrative 621 2,582
Depreciation, depletion, amortization and
accretion of asset retirement obligation 2,616 840
Impairment 27,773 2,000
Total operating costs 33,324 6,457
Operating loss (29,143) (4,276)
OTHER EXPENSE (INCOME):
Interest expense 1,133 311
Interest and other miscellaneous income (43) (93)
Amortization of deferred financing costs 522 0
Total other expense (income) 1,612 218
Net loss before taxes (30,755) (4,494)
Recovery of future income tax asset from
flow-through shares (40) (731)
NET LOSS $(30,715) $(3,763)
Basic and diluted loss per share $(0.38) $(0.05)
Weighted average number of shares outstanding 81,029,861 68,581,241
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(Stated in U.S. Dollars and in thousands, except per share amounts)
For the Nine Months Ended
September 30,
2007 2006
Cash flows from operating activities:
Net loss (36,654) (6,212)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Recovery of future income tax asset from
flow-through shares (1,318) (731)
Stock-Based compensation 607 2,238
Depreciation, depletion, and amortization 5,985 1,807
Accretion of asset retirement obligation 144 146
Asset Impairment 27,773 2,000
Gain on disposition of properties - 185
Amortization of debt issuance costs 522 -
Changes in operating assets and liabilities:
Accounts receivable 467 (427)
Prepaid costs and other current assets (563) (844)
Accounts payable 122 (3,784)
Accrued interest and other current
liabilities (790) 3,284
Net cash used in operating activities (3,705) (2,338)
Cash flows from investing activities:
Restricted cash 147 (259)
Capital expenditures - oil and gas properties (48,563) (56,446)
Capital expenditures - other assets (39) (145)
Net cash used in investing activities (48,455) (56,850)
Cash flows from financing activities:
Flow-Through shares - 1,950
Issuance of common stock 243 19,483
Debt issuance costs (3,417) -
Proceeds from bank debt 2,369 27,500
Proceeds from Series A & B Convertible Notes 50,195 -
Net cash provided by financing activities 49,390 48,933
Effect of exchange rate changes on cash 2,216 892
Net decrease in cash and cash equivalents (554) (9,363)
Cash and cash equivalents at beginning of period 5,299 29,502
Cash and cash equivalents at end of period $4,745 $20,139
Supplemental disclosure of cash flow information:
Cash paid for interest (net of amount
capitalized) $3,616 $-
Supplemental disclosure of non-cash investing
and financing activities:
Accruals of oil and gas properties $7,070 $15,841
Alberta firms can appeal decision that methane in coal is a separate resource
Shaun Polczer
Calgary Herald; CanWest News Service
Wednesday, November 07, 2007
CALGARY - The Alberta Court of Appeal has opened the door for a pair of corporate heavyweights to appeal a decision from the province's Energy and Utilities Board that allows coal-bed methane drilling on land where the ownership of the resource is disputed.
Carbon Development Corp. (formerly Luscar) and EnCana Corp. were granted leave to appeal on three points related to the EUB's assertion that natural gas in coal is separate from the coal itself, effectively making it public property.
At stake is ownership of trillions of cubic feet of coal-bed methane (CBM) on so-called "split title" lands where one party owns the gas but not the coal.
Both companies hold extensive titles, in some cases predating Confederation when they were held by the Canadian Pacific Railroad and the Hudson's Bay Company.
"Whether coal or natural gas interest holders are entitled to develop CBM is of great importance to the parties involved in the leave applications, as well as to many others in the energy industry," Justice Constance Hunt wrote in her decision.
"No Canadian court has opined on this subject."
The issue came to a head on March 27 when the EUB granted licences to drill CBM wells on land owned by EnCana and Carbon Development, claiming the gas is separate from the surrounding coal.
Following the decision, EnCana and Carbon Development immediately sued the licensees alleging trespass. The fate of those lawsuits will hang in the balance.
"This is the next step in the process to clarify the questions surrounding the whole CBM issue," said EnCana spokesman Alan Boras. "We're pleased to be able to take it to appeal."
Hunt decided there was reasonable ground to appeal the EUB decision in issues of jurisdiction, saying the board does not have the legal authority to settle ownership, which must be decided by a court.
But a claim by EnCana that questioned the "fairness" of the EUB process was tossed.
Although the ownership issue hasn't been addressed in Canada, in 1999, a similar dispute in the between Amoco and the Southern Ute Indian tribe went all the way to the United States Supreme Court.
David Speirs, the technical committee chairman of the Freehold Owners Association of Alberta, said the issue could eventually be decided by the high courts in this country as well.
In British Columbia, the issue of gas ownership has been legislated, but in Alberta, legal ambiguity remains.
Although Speirs expressed disappointment with the court's decision he agreed it is just one step in a drawn out process.
"We weren't surprised the court granted leave to appeal," he said. "We expected it."
If it goes to trial this spring, a decision could be issued next fall.
From there, it would begin an arduous, complex series of legal challenges and counter challenges that could take the matter all the way to Ottawa.
Speirs said it could prove to be a long and expensive battle for the group's 50,000 members.
"From the standpoint of the little guy, we as an association don't have the big bucks EnCana does. We're digging into our limited funds to intervene in this."
Darin Barter, a spokesman for the EUB, said it isn't unusual for board decisions to be challenged.
"It's fairly common. In this case, it's not surprising given the scope and number of companies that were affected," he said.
Nonetheless, the EUB will continue to grant CBM licences on the disputed lands, he added.
"We're obliged to continue to process those applications, so we will continue as normal," he said.
Barter added that the board stands by its action to grant the original licences.
"This issue has been muddy since Day 1," he said.
"Our decision was the first real progress in coming to a determination of this question."
© The Edmonton Journal 2007
Richards Oil & Gas Limited Provides Update on its Ardley and Horseshoe Canyon Drilling Results
CALGARY, Sept. 27 /CNW/ - Richards Oil & Gas Limited (the "Company"),
(TSX Venture: RIX) announces that drilling and testing activities on its
Lambert, Ansell and Marsh properties is continuing and the Company is making
progress toward proving the commercial production potential of its Ardley
Coalbed Methane ("CBM") exploration opportunity. The Company also reports that
it is adding production from 13 gross (7.6 net) Horseshoe Canyon CBM wells at
its Morningside, Lacombe and Thorsby properties. With the addition of these
new wells, net production in early October 2007 is estimated to stabilize at
215 boe per day, up 101 boe per day or 89% from the Q2 2007 production rate.
<<
Ardley Update
-------------
Activities for the third quarter of 2007 included:
- Drilled one horizontal well on the Company's Ansell property, using
an experimental "dry" in-balanced drilling process. The Company
achieved a 50 metre horizontal leg into the Ardley coals which has
shown reservoir pressure and potential gas flow rates similar to the
500 metre horizontal leg drilled at the Company's Marsh property,
indicating the potential for a commercially viable multi-lateral
well.
- Drilled two vertical wells on the Company's Lambert property which
have demonstrated dry coal seams capable of gas production,
indicating that this additional area has potential for a horizontal
drilling program.
- Re-entry, clean up and flow measurement of the previously drilled
horizontal well on the Company's Marsh property demonstrated
reservoir pressure build up and improved flow of gas compared to the
initial testing done in early 2007.
- A new stimulation technique that has the potential to significantly
reduce stimulation costs for future CBM development programs was used
at a previously drilled Lambert area well. This new stimulation
technique did not achieve the desired result in this first
application and the Company is continuing to work to prove the
viability of this new stimulation technique.
>>
Fourth quarter 2007 plans for the Company's Ardley CBM exploration
opportunity are to drill additional multi-lateral horizontal legs in the
Ansell well using an in-balanced "mist" system to increase well bore length
and production. It is anticipated that this well will then be tied into a
low-pressure pipeline that is in close proximity to allow for long-term flow
testing and analysis.
The Company has earned a further 18 sections of land (13.1 net) in the
Ardley through 2007 drilling activity and now has 41 sections earned (23.9
net) and 24.5 sections under option (12.9 net).
The Company's earned and optioned lands in the Ardley coals contain
approximately 1 TCF of gross in-situ CBM natural gas resource. Allowance for
net working interest position and the resource evaluator's assumptions of
likely horizontal well development based on select coal seams within the
Ardley, results in a discovered resource base of 136 BCF of natural gas net to
Richards Oil & Gas Limited.
Horseshoe Canyon Update
-----------------------
The Company has over 100 (gross) potential drilling locations at its four
Horseshoe Canyon development plays at Morningside, Lacombe, Thorsby and
Crossfield.
Morningside
-----------
The Company has tied in the 7 Horseshoe Canyon wells (5.0 net) that were
drilled prior to 2007. These wells are expected to be on production in early
October and produce over 400 mcf per day net to the Company. The Company plans
to drill and tie in five additional wells before year end. Year end production
from this area is anticipated to be 800 mcf per day.
Lacombe
-------
The Company drilled and tied-in five gross wells (2.1 net) that went on
production during September. The Company plans to drill and tie-in three
(gross) additional wells by year end. The Company currently has 16 (gross)
Horseshoe Canyon wells on production, producing 500 mcf per day net to the
Company.
Thorsby
-------
The Horseshoe Canyon well that was drilled and stimulated in February
2007 was brought on production in August. The well is currently producing at
greater than 100 mcf per day. The Company has interests in 4,640 gross acres
of land and a 30% interest in the gas sales pipeline in the Thorsby area.
Crossfield
----------
The Company drilled and completed the Horseshoe Canyon coals in one well
at Crossfield in July and has stimulated the coals and the sands in the
original development well drilled in the fall of 2006. Flow testing is
currently underway and initial results appear to be similar to the Company's
other Horseshoe Canyon wells with the added potential for natural gas
production from the co-mingled sands.
Other Property Update
---------------------
Gadsby
------
Production from two of the three wells in conventional gas zones
continued to decline and produce water. Current net production from this area
is 250 mcf per day net to the Company. Enhanced recovery equipment continues
to operate on two of the wells and the Company is evaluating the use of low
horsepower compression to enhance gas production. In that the Company has
existing pipeline infrastructure and the Mannville coal is the main target
formation at Gadsby, a test of the Mannville coals in one of the Company's
existing wellbores will be performed before year end which will include
stimulation and flow testing.
Silverdale, Lone Rock and Manitou Lake
--------------------------------------
Net production from these non-operated heavy oil properties is 13 boe per
day, down from 17 boe per day in early 2007. A recent pump change on the Lone
Rock well has improved production by 35% and the Manitou Lake well has been
suspended as uneconomic. The Company is reviewing additional drilling
potential in the Silverdale and Lone Rock areas with the operators given their
undeveloped land base and seismic coverage, in response to recent offset
activity. Net production from these areas is anticipated to be 10 to 13 boe
per day for the remainder of 2007.
Summary
-------
The economic impact to the Company of the recently released Alberta
Royalty Review Report is expected to be favourable to neutral given the
production levels typically of the Company's Horseshoe Canyon CBM wells.
Regardless of whether the Alberta government accepts the recommendation from
the Royalty Review Panel, the Company continues to execute its plan of taking
advantage of the lower cost and improved availability of field services to
increase production from its Horseshoe Canyon properties while working to
prove up the large resource potential of the Ardley. The Company will continue
to secure additional land interests in its operating areas, pursue additional
large CBM resource plays and review corporate opportunities. All of these
activities are consistent with the Company's strategy to capitalize on CBM
opportunities that create both short-term cash flow and long-term value for
its shareholders.
Richards Oil & Gas Limited (www.richardsoilandgas.com) is a Calgary-based
exploration company, involved in the development of crude oil and natural gas,
with an emphasis on the exploitation of coal bed methane ("CBM"). With a
significant land base and industry-leading experience in the development of
CBM projects, the Company is at the forefront of the CBM industry in Western
Canada. The Company is able to capitalize on opportunities that create both
short-term cash flow and long-term value for its shareholders.
Coalbed Methane ("CBM") or natural gas from coal is technically defined
as gas produced naturally by coalification, and found within coal natural gas
reservoirs consisting predominately of methane, with smaller amounts of higher
hydrocarbons, water vapor, nitrogen, carbon dioxide, or other
non-hydrocarbons. The majority of gas is usually physically sorbed within the
microporosity and mesoporosity within the organic matrix. The Company's
management has extensive experience in the development of CBM projects, which
it is using to exploit the Company's land base and to add and sustain
significant value for its shareholders.
Tap into coalbed methane potential
Barry Critchley
Financial Post
Wednesday, October 10, 2007
Whether the Kyoto accord comes into effect or not, clean energy will be the mantra for governments, and presumably for producers and consumers.
And into that mantra, companies that have access to coalbed methane (CBM) -- or its variant coalseam methane (CSM) -- are hoping to make their mark. Methane is the major component of natural gas and is also a byproduct of the coal-formation process.
"Utilization of coalbed methane has three major benefits," said a recent report from Credit Suisse. The benefits: bridging the energy shortage, improving coal-mining safety and lowering emissions.
Credit Suisse's report was titled "Asia coalbed methane sector." Indeed, Asia -- particularly Australia, China and Indonesia -- is the home base for much of the world's potential CBM. Much of those resources haven't been developed.
But according to the Australian Coal Association, outside of the United States, Australia has "the most commercially advanced coal mine methane (CMM) and coal bed methane industry."
The country is also home to the world's largest CMM power project. In the state of Queensland, for example, producers have been beavering away for more than a decade. In 2002, the state government released an energy policy mandating that by 2005, 13% of the state's electricity generation had to come from natural gas. Currently 40% of Queensland's gas consumption comes from coalseam gas.
In this part of the world, according to a report from the U.S. Energy Information Agency, 8% of U.S. gas production is supplied from CBM sources. (The U.S. CBM industry has been around for 20 years.) In Canada, both EnCana Corp. and Nexen Inc. produce gas from CBM projects. And there are a number of fledgling developments: This year, when Sherritt International Corp. purchased Dynatec Corp., it acquired a number of coalbed methane lease arrangements.
Certainly investors seem interested in funding CBM opportunities outside of North America. Recently, privately held Saber Energy Corp. raised about $40-million of equity via a transaction led by Westwind Partners. The money will be used to develop a CBM field and gas-fired power station in Botswana. The plan is to generate electricity that will be supplied to South Africa, presumably under a long-term contract. (It also aims to supply gas to the Botswana Power Corp.) Saber has about one million acres under licence in Botswana.
Now comes word that Coal Gas Corp. Ltd., another private company, is also seeking to raise capital. Coal Gas Corp. is after about $60-million. Dundee Securities is leading the charge. Coal Corp. has signed a "farm-in" agreement with Australia's Arrow Energy. (The original letter of intent was signed in February, 2007.) Arrow is building a portfolio of coalseam gas (CSG) resources in Australia and throughout Asia. It is the leading CSG player in Australia, with a market cap of A$1.6-billion. Under that agreement, Coal Gas -- whose parent is Swedish-based Energy Infrastructure group -- can participate in the development of about one-third of Arrow's Australian CBM developments. As well, it will have a 15% participation in three CBM licences in India. (EIG is one of Arrow's joint-venture partners in some recently awarded Indian CBM blocks.)
bcritchley@nationalpost.com
© National Post 2007
Shale Gas and CBM Operations Update
09:00 EDT Tuesday, October 09, 2007
http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGe...
SLV tsxventure
CALGARY, Oct. 9 /CNW/ -
Alberta Shale Gas Prospect
--------------------------
Stealth Ventures Ltd. (Stealth) is pleased to announce that it has finished drilling operations and commenced completion, testing and tie-in operations for a twenty well program on its Alberta shale gas project. Prior to the current program, nine wells had been tied-in on the play with initial production rates ranging from up to 150 mcf/ day/ well and averaging just under 100 mcf/ day/ well. Capital costs for the current program have been reduced from previous operations by an estimated 42% for drilling, 39% for completions and 25% for tie-ins. This is due in part to pricing pressure caused by an available supply of new equipment and services in the sector. The twenty well program also allowed for planned 'economies of scale' that will enable Stealth to evaluate and plan full development of the project.
The wells target biogenic natural gas from multiple horizons within the organic rich Colorado Shale Group. Current spacing unit holding rules for the area allow licensing for up to four wells per section at the shallow depths of these wells (500 metres or less). To date, Stealth has been drilling one well per section, successfully testing the geological concept, testing different completion technologies and earning land. Preliminary analysis indicates higher density spacing of more than four wells per section may ultimately be required to maximize recovery from these tight rock formations. Management does believe that as the project progresses to the development stage, better target identification and technology application could lead to increased productivity and drainage per well.
Stealth currently has approximately 112 sections, 72,000 gross acres, of mineral rights in the prospect area with approximately a 67% average working interest. Stealth also has options to earn an additional 13 sections by drilling. Stealth has continued to concentrate a large percentage of its budget on the growth of this very promising project.
Nova Scotia CBM Update
----------------------
Stealth is in the final stages of procurement for the Cumberland basin horizontal well frac program which is tentatively scheduled for mid-November pending equipment availability windows.
Stealth Ventures Ltd. is a Calgary-based junior oil and gas company whose expertise and focus is on the "unconventional" gas reserves from CBM, shale gas and tight gas sand reservoirs.
STEALTH VENTURES LTD.
"W. Robert Bell"
Per: W. ROBERT BELL
Chief Executive Officer
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS
RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS
MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED.
%SEDAR: 00008195E
For further information: W. Robert Bell, CEO, Mark J. Roth, CFO, Stealth Ventures Ltd., Tel.: (403) 514-9998, Fax: (403) 514-9995, Emails: investorrelations@stealthventures.ca; Investor Relations, First Canadian Capital Corp, Tel.: (416) 742-5600, Tel.: (866) 580-8891, Email: request@firstcanadiancapital.com
Torrent Energy Secures Draft Water Discharge Permit, Takes Key Step Toward Coos Bay CBM Production
Tuesday October 2, 7:00 am ET
http://ca.us.biz.yahoo.com/iw/071002/0309554.html
PORTLAND, OR--(MARKET WIRE)--Oct 2, 2007 -- Torrent Energy Corporation (the "Company") (OTC BB:TREN.OB - News) today announced it has secured preliminary approval of a much anticipated water disposal plan permit for its coal-bed methane natural gas project in Coos Bay, Oregon. The approval came in the form of a draft version National Pollutant Discharge Elimination System Waste Discharge Permit issued by Oregon State's Department of Environmental Quality (DEQ). This water disposal plan approval marks a bellwether event and is another critical milestone reached. It allows the Company to move forward on its stated mission of moving the Coos Bay field from the development stage into the commercial production stage. The final permit is scheduled to be completed and issued to Torrent Energy in early November 2007, following a 40-day public comment period. The permit is the first of its kind to be issued by the State of Oregon for a CBM project and involved five levels of government and numerous phases of regulatory compliance.
"The environmentally sound disposal of by-product waste water during gas production is a critical and very necessary part of coal-bed methane extraction," stated Torrent's president and CEO, John Carlson. "Having an effective, low-cost water management and disposal system in place is key to a successful coal-bed methane (CBM) project and this approval represents months of research, testing and reporting, expertly shepherded by Methane Energy's Environmental Manager, Peggy Halferty (PE). The issuance of this permit provides us the ability to implement a cost-effective water disposal system which is a critical element to the future economic development of this resource."
Carlson further stated "Torrent is committed to environmental sensitivity. Developing a sustainable water management system was of utmost importance in staying true to our corporate values. Throughout the course of this project, we have worked cooperatively with Coos County residents and regulatory agencies to achieve positive outcomes for all concerned. Coming up with a desirable water treatment and disposal plan was no exception."
About Torrent Energy Corporation
Torrent Energy Corporation is a growing exploration company focusing on developing non-conventional natural gas reserves in the Northwestern United States. The Company's primary objective is to create value for stakeholders by applying strong technical expertise to projects. The current focus of the Company's Oregon subsidiary, Methane Energy Corp., is on the exploration of the Coos Bay Basin project in southwestern Oregon where the Company currently has a land portfolio that includes over 118,000 acres of prospective land. For more information please visit www.torrentenergy.com.
Safe Harbor Statement: This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to, that the water disposal plan approval allows the Company to now move forward on their stated mission of moving the Coos Bay field from the development stage into the commercial production stage; that the final permit is scheduled to be completed and issued to Torrent Energy in early November 2007; that with the issuance of this permit, we are now ready to proceed with our field development/production plans, including fracture stimulation and pipeline tie-in to the Coos County gas transmission system.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling and/or interpreting data, market fluctuations and spot prices for gas, and the possibility that no commercial quantities of gas are found or recoverable. For more risk factors about our Company, readers should refer to risk disclosure in our most recent 10-K filed on Edgar.
Contact:
For further information please contact:
Investor Relations in the U.S.
Pfeiffer High Investor Relations, Inc.
Geoff High
Principal
Phone: 303-393-7044
Email: Email Contact
Torrent Energy Corp.
John Carlson
President & CEO
Phone: 503-224-0072
Email: Email Contact
Investor Relations in Canada
CHF Investor Relations
Kelly Cody
Account Manager
Phone: 416-868-1079 ext. 223
Email: Email Contact
Source: Torrent Energy
Storm Cat Energy Corporation Provides Interim Financial and Operations Update
Mon Oct 1, 7:02 AM
http://ca.news.finance.yahoo.com/s/01102007/31/link-finance-news-storm-cat-energy-corporation-provid...
DENVER and CALGARY, Alberta, Oct. 1 /PRNewswire-FirstCall/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME) today provided an interim financial and operations update.
Senior Credit Facility
The Company announced that it has reached an agreement with JPMorgan to restore its borrowing base under its existing senior credit facility to $35.0 million. As previously announced on August 9, 2007, Storm Cat was not in compliance with the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) to debt ratio covenant at the end of the second quarter of 2007 due, principally, to the impact of abnormally low gas prices in the Rocky Mountains. At that time, JPMorgan waived the covenant for the second and third quarters of 2007 and entered into negotiations with the Company to amend the credit agreement covenants. Until such agreement was reached, the borrowing base under the Company's credit facility was lowered to $27.5 million. After review of mid-year Powder River Basin reserves prepared by the Company, JPMorgan has returned the borrowing base under the facility to $35.0 million. The agreement also waives the EBITDA to debt ratio covenant until March 31, 2008.
PRB Production Curtailment
Additionally, the Company announced that it has temporarily curtailed a portion of its Powder River Basin gas production due to force majeure events on important Rocky Mountain pipeline infrastructure.
A fire on the Cheyenne Plains Gas Pipeline reduced Rockies take-way capacity resulting in extraordinarily low natural gas prices. The pipeline operator expects capacity constraints through mid-November. In light of this situation, the Company has temporarily curtailed its production to equal the volumes of the Company's financial hedges, or to approximately 7.7 net million cubic feet per day (MMcf/d) at the average price of $6.23 per million British thermal units.
Fayetteville
The Company also announced that it has successfully drilled the first two of its three planned wells on its 17,500 acre Fayetteville Shale project and is currently drilling the third well. Completion activities have commenced on the first well, and the Company anticipates sharing initial flow test results during the fourth quarter.
Storm Cat Chief Executive Officer, Joe Brooker, said: "We are pleased that after reviewing Storm Cat's mid-year reserve report and through discussions with management, JPMorgan was able to return our borrowing base to $35.0 million. We are focused on managing low commodity prices in the Rockies with the expectation of improvements with the oncoming of winter and the REX West pipeline. We are also encouraged by what we have observed to date in our Fayetteville acreage, and we are working diligently to assess the productivity of our wells."
About Storm Cat Energy
Storm Cat Energy is an independent oil and gas company focused, on the exploration, production and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations and, secondarily, from conventional formations. The Company has producing properties in Wyoming's Powder River Basin, and Arkansas' Arkoma Basin and exploration and development acreage in Canada. The Company's shares trade on the American Stock Exchange under the symbol "SCU" and in Canada on the Toronto Stock Exchange under the symbol "SME."
Forward-looking Statements
This press release contains certain "forward-looking statements", as defined in the United States Private Securities Litigation Reform Act of 1995, and within the meaning of Canadian securities legislation, relating to the proposed use of proceeds. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of Storm Cat's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Storm Cat undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but a change in the use of proceeds, the volatility of natural gas prices, the possibility that exploration efforts will not yield economically recoverable quantities of gas, accidents and other risks associated with gas exploration and development operations, the risk that the Company will encounter unanticipated geological factors, the Company's need for and ability to obtain additional financing, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration and development plans, and the other risk factors discussed in greater detail in the Company's various filings on SEDAR (www.sedar.com) with Canadian securities regulators and its filings with the U.S. Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended December 31, 2006.
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
SOURCE Storm Cat Energy Corporation
Contacts
William Kent
Director
Investor Relations of Storm Cat Energy Corporation
+1-303-991-5070
Canadian Spirit Resources Inc. Provides Operations Update
Thu Sep 13, 2:34 PM
http://ca.news.finance.yahoo.com/s/13092007/28/link-finance-news-canadian-spirit-resources-inc-provi...
CALGARY, ALBERTA--(Marketwire - Sept. 13, 2007) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE: SPI.V) announces interim results from the first phase of the pilot project at Farrell Creek, in northeast British Columbia.
Operations Update
Operations during the third quarter of 2007 were designed to complete the first phase of the Farrell Creek pilot project by demonstrating economic rates of natural gas production and further reductions in capital and operating costs. Results to-date toward advancing those objectives have been positive.
Commencing in early July, operations to date have included re-completion work on the b-002 and b-092 wells; optimization tests on each of these wells to measure the impact of reducing down hole pressure; a modified fracture stimulation of the upper portion of the Gething Formation in the b-003 well; and remedial work on the b-003 well to remove a bridge plug and improve water pumping mechanics. The b092 well is currently shut-in and waiting for tie-in having reached its regulatory flaring limit. During a seventeen month period of non-continuous testing, the b-092 well produced a cumulative total of 52 million cubic feet of natural gas.
Results from the fracture stimulation of the upper portion of the Gething Formation of the b-003 well were very encouraging in terms of initial production rates and technical improvements to further optimize well completions. Initial production rates exceeded the Company's target of 200 mcf/d for stabilized production from each vertical well. Testing to determine a stabilized production rate from the b-003 well is continuing.
The positive results from the fracture stimulation of the upper portion of the b-003 well has resulted in a decision to also fracture stimulate the upper portion of the Gething Formation in the b-002 well before proceeding with the planned completion of the d-093 well. The fracture stimulation of the upper portion of the b-002 well is designed to further evaluate certain components of the stimulation programs carried out to-date and potentially add to the productivity of this well.
The extended operations at b-003 and the addition of a fracture stimulation program at b-002 will defer the planned completion of the d-093 well to at least late September rather than the original August schedule.
New Royalty Program
On July 31, 2007 the Government of British Columbia announced a Net Profit Royalty Program (the "Program") to primarily encourage development of unconventional gas (coalbed, shale and tight sand gas) or remote conventional gas resources in the province. This Program, with low initial royalty and capital recovery features, will significantly enhance the economic threshold of unconventional natural gas projects such as Farrell Creek and is expected to result in accelerated capital investment in the province. Applications for approval under this program are expected to be accepted beginning in the Fall of 2007. The Company believes that the Farrell Creek project will qualify under this Program. Further information on this Program can be found under www.gov.bc.ca "Ministries & Organizations" -Energy, Mines and Petroleum Resources - News.
CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. The Company has identified a 1.8 tcf resource play, assembled a unique, high working interest land position in over 42,000 gross acres (of which 40,000 are located in British Columbia) and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.
On behalf of the Board of Directors,
CANADIAN SPIRIT RESOURCES INC.
Phillip D.C. Geiger, President & Chief Operating Officer
OTC Bulletin Board Symbol (Foreign) "CSPUF"
The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.
The TSX Venture Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this release.
Contacts
Phil Geiger
Canadian Spirit Resources Inc.
(403) 539-5005
(403) 262-4177
Email: phil.geiger@csri.ca
Don Gardner
Canadian Spirit Resources Inc.
(403) 539-5005
(403) 262-4177
Email: don.gardner@csri.ca
Gordon W. Aldcorn
BRISCO Capital Partners Corp.
Investor Relations
(403) 262-9888
(403) 263-1339 (FAX)
Email: ir@csri.ca
Admiral Bay Update: Near Term Development Program for Cherokee Basin Projects
Fri Sep 7, 4:10 PM
http://ca.news.finance.yahoo.com/s/07092007/28/link-finance-news-admiral-bay-update-near-term-develo...
CENTENNIAL, COLORADO--(Marketwire - Sept. 7, 2007) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that further to its news release of August 29, 2007, the Company is now in receipt of its initial funding from its newly established credit facility. With this funding, the Company has paid off its previous credit facility, outstanding accounts payable and has the funding in place to bring new wells into production that were originally drilled in the 2006 Development Program and not completed. Upon completion of the current year's reserve report, anticipated in the next 30 days, an additional US$2.5 million will become available from the credit facility to begin a drilling program once this initial completion and tie-in work is finished.
Current Status of the Projects
The Company currently has 164 wells in production - 108 at the Shiloh project, 27 at Mound Valley and 29 at Devon. Wells completed from the 2006 Development Program have consistently shown better production results than earlier wells, due to changes in completion techniques. Production at the Shiloh project has fluctuated greatly over the last four months due to compressor issues. The compressor which was causing the problem has recently been replaced and it appears that this has resolved the issue. Management is confident that given uninterrupted periods of production for the wells at the Shiloh project, production will increase as the system pressure is reduced and de-watering occurs allowing wells to move towards peak rates.
Development Program
Under the development program being implemented, Admiral Bay will focus on bringing its remaining wells from the 2006 Development Program on production. Funding for this program is in place and will be completed in two phases. The program will include completion work, addition of well equipment, the addition of 5+ miles of flow lines and 10+ miles of gathering system. Total cost for this development program is estimated at US$1.73 million.
The first phase will focus on new wells being completed and brought into production. When complete, this will put 31 new wells on production. The second phase will primary focus on reworking older wells and opening up new areas. This will add an additional 7 wells to production along with 5 wells that will be refraced in the Shiloh area.
Phase one and two will bring an additional 43 wells into production and is estimated to be complete by the end of the November. Once complete, Admiral Bay will have over 200 wells in production.
A third phase will follow, that will include the drilling and completion of 20 - 25 new wells at the projects. Funding for this phase will come from the increase in the credit line borrowing base after receipt of the updated reserve report. Additional wells will be drilled in small groups following the completion of this third phase.
"With funding in place from our new credit facility, we can once again become more aggressive with our development work in the field", stated Steve Tedesco, President of Admiral Bay. "Work has already begun to complete wells not in production from our 2006 Development Plan. We look forward to reporting results of this work in the near future".
The Company also announces that it has granted 675,000 incentive stock options to officers and directors of the Company at a price of $0.23, which are exercisable until September 6, 2012.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Curt Huber
Admiral Bay Resources Inc.
V.P. Corporate Development
(604) 628-5642 or Toll Free: 1-866-217-1620
Email: info@admiralbay.com
Website: www.admiralbay.com
ADMIRAL BAY ANNOUNCES COMPLETION OF US$100,000,000 CREDIT FACILITY
30 August 2007, 06:45am PST
http://www.admiralbay.com/news/index.cfm?SiteID=1022&ToolID=1025&ContentID=171350&Func=d...
Admiral Bay Resources Inc. (TSX.V: ADB) ("Admiral Bay" or the "Company") is pleased to announce the completion of a US$100,000,000 Amended and Restated Advancing Term Credit Facility provided by GasRock Capital LLC ("GasRock").
Admiral Bay and GasRock have entered into a US$100,000,000 Amended and Restated Advancing Term Credit Facility dated August 29, 2007. Under the terms of the credit facility, the Company has initial availability of US$22,500,000, with a further US$2,500,000 available upon delivery of a new reserve report, which is anticipated to be complete by September 30, 2007. Further advances will be subject to a borrowing base calculation including proved reserves from new wells drilled or acquired. The facility will have an interest rate that will float based on LIBOR and will initially be approximately 13%. The maturity date under the credit agreement is August 29, 2010 and provides for the grant of various security interests, including a first lien on substantially all of the assets held by the Company. GasRock has also been granted a royalty interest of between 2% and 4% in the oil and gas interests of Admiral Bay.
The Company will use the proceeds of this new credit facility to pay off the outstanding debt on its existing credit facility of approximately US$18,400,000 and to expedite the development of its unconventional gas projects in the Cherokee Basin in southeastern Kansas and the Appalachian Basin in Pennsylvania. This will include connecting wells that have been drilled from last year's development program that have not been completed, continuation of the well optimization program at the Shiloh, Mound Valley and Devon projects, additional pipeline work to connect a number of new areas to the sales line and new development well drilling.
As part of the credit agreement terms, the Company has entered into a costless collar on 40,000 mcf per month for 24 months at a realized floor price of $5.50 per mcf and a ceiling price of $7.95 per mcf (approximately $6.65 to $9.10 implied NYMEX price).
"We are pleased that after a lot of hard work we have reached a favorable conclusion to the "strategic alternative" process, stated Steve Tedesco, President of Admiral Bay. With the funding from this facility we can now aggressively move forward to connect all wells that have been awaiting tie-in from the 2006 Development Program and then get back to drilling new wells in the fourth quarter of the year".
RBC Capital Markets acted as financial advisor to Admiral Bay.
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
About GasRock
GasRock Capital LLC is the investment affiliate of Weisser, Johnson & Co. specializing in direct mezzanine debt and project equity investments. The Houston-based fund makes investments in oil and gas development drilling and midstream natural gas energy projects in sizes ranging between $5 million and $100 million, or larger. GasRock was founded in June 2005 and has over $450 million of facilities in place.
Statements in this release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these “forward-looking statements”.
The TSX Venture Exchange does not accept responsibility for the adequacy of this release
For More Information
Curt Huber
V.P. Corporate Development
Tel: (604) 628-5642
Toll Free: 1-866-217-1620
Email: info@admiralbay.com
Penn Virginia Corporation Announces Mid-Continent Acquisition
Thu Aug 30, 8:15 AM
http://ca.news.finance.yahoo.com/s/30082007/34/biz-finance-news-penn-virginia-corporation-announces-...
RADNOR, Pa.--(BUSINESS WIRE)--Penn Virginia Corporation (NYSE: PVA) announced today that it has closed an acquisition for $47.9 million in the Arkoma Basin of eastern Oklahoma primarily targeting Hartshorne coalbed methane (CBM), with upside potential in the Woodford and Caney Shales.
Transaction Highlights
* Estimated proved reserves of 18.8 billion cubic feet of natural gas equivalent (“Bcfe”) and 14.8 Bcfe of probable and possible reserves;
* Current net production of approximately 3.1 million cubic feet of natural gas equivalent per day;
* Approximately 22,700 gross (15,800 net) acres located adjacent to PVA’s Riverbend horizontal Hartshorne CBM project in McIntosh and Hughes Counties, Oklahoma with approximately 80 potential CBM locations; and
* Potential upsides include reserves associated with the Woodford and Caney Shales (approximately 13,700 prospective net acres), shallow conventional reservoirs, and downspaced horizontal Hartshorne CBM drilling.
The acquisition was funded with cash on hand and borrowings under PVA’s revolving credit facility.
Management Comments
A. James Dearlove, President and Chief Executive Officer, stated, “Located adjacent to our existing Riverbend project, this acquisition has attractive transaction economics and provides us with additional exposure to potential upside opportunities. The acquisition is consistent with our growth strategy and also supports our belief that the Mid-Continent region contains numerous attractive expansion opportunities.”
Headquartered in Radnor, PA and a member of the S&P SmallCap 600 Index, Penn Virginia Corporation (NYSE: PVA) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of reserves in onshore regions of the U.S., including the Appalachian Basin, the Cotton Valley play in east Texas, the Selma Chalk play in Mississippi, the Mid-Continent region and the Gulf Coast of Louisiana and Texas. PVA also owns approximately 82 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG), the owner of the general partner and the largest unit holder of Penn Virginia Resource Partners, L.P. (NYSE: PVR), a manager of coal properties and related assets and the operator of a midstream natural gas gathering and processing business. For more information about PVA, please visit PVA’s website at www.pennvirginia.com.
Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: whether or not the acquisition will be cash flow accretive; whether or not PVA’s reserve and production estimates are accurate; integrating and managing the newly acquired oil and gas assets with PVA’s existing oil and gas exploration and production business; competition from other oil and gas exploration and production companies; pipeline availability; potential equipment malfunction and repair delays; weather related delays; the legislative and regulatory environment; and political and economic conditions, including the impact of potential terrorist acts.
Additional information concerning these and other factors can be found in PVA’s press releases and public periodic filings with the Securities and Exchange Commission, including PVA’s Annual Report on Form 10-K for the year ended Dec. 31, 2006 and subsequently filed interim reports. Many of the factors that will determine PVA’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. PVA undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Penn Virginia Corporation
James W. Dean, Director, Investor Relations
610-687-7531
Fax: 610-687-3688
E-Mail: invest@pennvirginia.com
Middle Belly River Comes in Big at Nordic's New Well in Joffre
Fri Aug 24, 9:59 AM
http://ca.news.finance.yahoo.com/s/24082007/30/link-finance-news-middle-belly-river-comes-big-nordic...
WINNIPEG, Aug. 24 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or the "Corporation"), today announced that the field measurement results from the two-day flow test on the Corporation's 11th well in Joffre, Alberta, Canada have shown that the middle Belly River zone had gas rates of 18.5 10(3)m(3) during a one hour flow test. The Belly River formation where the measurement was taken was perforated at between 649.5 metres and 651 metres.
"The gas rate level at the 699.5-metre to 702-metre interval tested at 3.5 10(3)M(3)," Mr. Benson noted. "Given these excellent results, when combined with the Basal Belly River results, we certainly are optimistic that this will be a strong producing well for the Corporation."
The Corporation plans to tie this well into its pipeline system -- a distance of 200 metres -- and will begin to produce it during the 4th quarter once gas prices rise.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The Company is listed on the TSX Venture Exchange and trades under the symbol NOG.
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation's management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of the contents of this News Release.
Contacts
Donald Benson
Chairman & CEO
Nordic Oil & Gas Ltd.
Tel: (204) 956-5042
Fax: (204) 897-7154
E-mail: dbenson57@shaw.ca
Methane dispute reignites in B.C.
WENDY STUECK
August 22, 2007
http://www.theglobeandmail.com/servlet/story/LAC.20070822.RSHELL22/TPStory/?query=methane
VANCOUVER -- A group of protesters, including members of the Tahltan and Iskut Indian bands, blocked a road in northwestern British Columbia yesterday, preventing Royal Dutch Shell PLC crews from heading into a contested region to do road repair work and reigniting a debate over coal bed methane exploration in the area.
Shell is reviewing its options, spokesman Larry Lalonde said yesterday, adding that it's too early to say if the company will seek an injunction to gain access to its exploration projects.
"We have to look at everything that's there - one of those options could include seeking an injunction, but we haven't made that decision yet," Mr. Lalonde said.
Shell has licenses to drill up to 14 wells in the region. The company voluntarily curtailed exploration work in 2005 and 2006 following similar protests.
Opponents says coal bed methane projects could pollute surface and ground water, threaten fish and wildlife habitat, and disrupt a remote wilderness landscape. Coal bed methane is natural gas found in coal seams. B.C. currently does not have any coal bed methane production, but the province has voiced support for coal bed gas development.
For this season, Shell planned to reopen three of four previously drilled wells and possibly drill new ones, Mr. Lalonde said. In response to concerns about potential water contamination, the company has promised to truck any from its exploration activities away from the site for treatment or disposal.
Before Shell can do any exploration work, it must repair a road badly damaged by this past winter's heavy snowfalls and flooding. Road repair crews and equipment turned back after encountering protesters on the Ealue Lake Road, near Iskut in northwestern B.C., yesterday morning.
In 2005, 13 people were arrested at a blockade at the same site that targeted Fortune Minerals Ltd., an Ontario-based company that has a coal project in the region.
Hi John
I've been poking around but haven't come up with anything. I haven't noticed that all the little CBM plays are becoming bubbly. Even ADB seems to have bottomed!
LC
LC
Any opinion on why SPI has come around the past week?
Apart from the financing I don't see any new developments in that last update.
Canadian Spirit Resources Inc. Announces Second Quarter 2007 Financial Results
Fri Jul 27, 4:56 PM
http://ca.news.finance.yahoo.com/s/27072007/28/link-finance-news-canadian-spirit-resources-inc-annou...
CALGARY, ALBERTA--(CCNMatthews - July 27, 2007) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE: SPI.V) announces the release of its financial results and Management Discussion and Analysis for the three and six month periods ended June 30, 2007.
CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. The Company has identified a 1.8 tcf resource play, assembled a unique, high working interest land position in over 42,000 gross acres (of which 40,000 are located in British Columbia) and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.
Highlights in the first half of 2007 are:
- Approval of Experimental Scheme covering the pilot production project area at Farrell Creek, B.C.;
- Field operations result in improved equipment reliability and reduced operating costs;
- First phase of Farrell Creek pilot program nears completion; and
- Announcement of and subsequent closing of a combined Unit and Flow-through share private placement totaling $3.5 million to fund the Company's capital program in the second half of 2007.
Selected Financial Data ($ CDN)
For the six month periods ended on or as at June 30 2007 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenue $ 39,492 $ 198,790
Net loss $ (430,182) $ (944,281)
Net loss per share (basic & diluted) $ (0.01) $ (0.04)
Working capital $ 524,482 $ 3,135,950
Total assets $ 35,267,723 $ 30,164,024
Total long term financial liabilities $ 450,756 $ 1,209,240
For the three month periods ended June 30 2007 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total revenue $ 13,976 $ 86,933
Net gain (loss) (150,227) 31,536
Net gain (loss) per share (basic & diluted) - -
($ CDN)
For the six month periods ended June 30 2007 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Lease acquisitions and retentions $ 52,160 $ 27,258
Geological and geophysical 9,245 3,344
Drilling and completion 1,230,372 4,133,192
Capitalized overhead 272,629 321,616
---------------- -------------
Total petroleum and natural gas 1,564,406 4,485,410
Office equipment and furnishings 3,251 4,655
---------------- -------------
Total capital expenditures $ 1,567,657 $ 4,490,065
---------------- -------------
---------------- -------------
Nordic Oil & Gas Ltd (C-NOG) - News Release
Nordic Oil finds the perfect fit for Joffre
2007-06-29 09:19 ET - News Release
Shares issued 15,824,812
NOG Close 2007-06-28 C$ 0.17
Mr. Donald Benson reports
NORDIC OIL AND GAS ANNOUNCES SIGNIFICANT LAND ACQUISITIONS IN ALBERTA
Nordic Oil & Gas Ltd. has entered into an agreement to acquire approximately 8,000 acres of petroleum and natural gas leases in the Peace River Arch and Lloydminster regions of Alberta. Nordic will acquire these assets for cash considerations of $200,000, plus 1.5 million Class A common shares of the corporation at a price of 30 cents per share, for a total acquisition price of $650,000. The acquisition is expected to close on or about Aug. 15, 2007, with the closing being subject to customary industry regulations and conditions.
These lands will provide Nordic with new core areas for the corporation and will be a strategic fit for its current production and impending drilling activity at Joffre, Alta. The lands are being acquired from companies that are active in assembling petroleum and natural gas leases for sale to junior and start-up oil and gas companies. The lands have been evaluated by independent geological and geophysical consultants and based on this evaluation, and that of management, the corporation is very excited about the potential of these new acquisitions.
"The success of other companies that have dealt with the vendors gives us considerable confidence that these lands will be a positive addition to our already strong landholdings in Alberta," said Donald Benson, chairman and chief executive officer of Nordic Oil, adding that this acquisition triples the corporation's land position in the province.
Mr. Benson noted that the corporation would be moving into the Lloydminster area as soon as possible, "Where we are seeing heavy oil being produced at a depth of 600 metres." Nordic anticipates that each well will cost approximately $250,000 to drill and a further $150,000 to complete.
"The play in the Peace River Arch will initially be that of Blue Sky gas at a depth of 525 metres," he added. "Both of these plays are in actively producing areas, not unlike where we are located in Joffre."
Nordic currently is in the marketplace with a non-brokered private placement offering of up to four million units at a price of 30 cents per unit for total gross proceeds of up to $1.2-million. Each unit will consist of one flow-through common share, within the meaning of the Income Tax Act (Canada), plus one-half of a share purchase warrant of the corporation. Each full warrant will entitle the holder to purchase one regular Class A common share of the corporation at a price of 40 cents for a period of two years from the date of issuance. The flow-through shares and the warrants underlying the units will be subject to a four-month hold period.
Lotta work ahead of them to get this share price on the move again
No mention of the Ardley.....
Well, get some HSC gas flowing and some cash flow happening.
Keep plugging away on the company maker play I guess.
Will it run?
Richards Oil amends $10-million private placement
2007-07-03 08:49 MT - News Release
Mr. Brad Turner reports
RICHARDS OIL & GAS LIMITED AMENDS TERMS OF $10 MILLION PRIVATE PLACEMENT
Richards Oil & Gas Ltd. has amended the terms of its previously declared $10-million private-placement financing of units. Pursuant to negotiations with the lead agent Octagon Capital Corp., the financing will consist of subscription receipts of the corporation at a price of 32 cents per subscription receipt. Each subscription receipt is automatically exchangeable, without additional payment, into units of the company on a one-for-one basis upon approval of the shareholders of the company. Each unit consists of one common share in the capital of the corporation and one-half of one common-share purchase warrant. Each warrant shall entitle the holder thereof to acquire one common share at a price of 40 cents until 5 p.m. Calgary time on the date that is 24 months following the closing date of this offering. The issuance and listing of up to 46,875,000 common shares pursuant to the private placement is subject to the final approval of the TSX Venture Exchange.
The financing has been amended to subscription receipts exchangeable upon shareholder approval due to the anticipated participation of Trapeze Capital Corp. and Trapeze Asset Management Inc. on behalf of managed accounts (collectively, Trapeze). It is anticipated that Trapeze will subscribe for 28,125,000 subscription receipts for a total purchase price of $9-million. Trapeze's purchase of 28,125,000 subscription receipts will make it a new "control person" of the company pursuant to the rules of the exchange. Accordingly, the exchange requires shareholder approval.
In addition, Trapeze's purchase of 28,125,000 subscription receipts constitutes a related party transaction, as defined in Ontario Securities Commission Rule 61-501 Insider Bids, Issuer Bids, Business Combination and Related Party Transactions, since Trapeze currently exercises control or direction over more than 10 per cent of the issued and outstanding shares of the company.
As a result of the financing and assuming the financing is fully subscribed, Trapeze will exercise control or direction over approximately 48 per cent of the issued and outstanding shares of the company. If Trapeze's warrants and previously issued convertible securities are fully exercised and/or converted, Trapeze will exercise control or direction over common shares of the company, representing approximately 57 per cent of the currently issued and outstanding shares of the company, assuming no further common shares had been issued after the date hereof.
Octagon Capital, as agent, shall receive a commission equal to the lessor of 7 per cent of the total gross proceeds of the financing and $420,000, and will not receive the previously announced broker warrants.
Proceeds of this private placement will be used to accelerate the development of the company's Horseshoe Canyon (HSC) coal bed methane (CBM) properties and for general corporate purposes.
With the proceeds of this private placement, the company plans on completing the tie-in of seven standing wells, and the drilling, completion and tie-in of over 30 HSC wells in 2007 resulting in a net production increase of approximately 2.2 million cubic feet per day.
The positive cash flow from this added production will be used to continue the development of the company's HSC and Ardley CBM properties by completing 25 to 30 wells in 2008, resulting in a further net production increase of approximately 1.6 million cubic feet per day.
To date, equity and debt financing have been the company's primary source of capital until anticipated cash flow from operations is generated. The company's purpose and business reason for conducting the private placement is to finance the development of its oil and gas exploration properties and to provide working capital. The private placement will also increase the number of shares and share purchase warrants outstanding. Otherwise, it is not expected to materially affect the company's business and affairs.
The acquisition of common shares by Trapeze under the private placement, both initially and pursuant to the exercise of the underlying warrants, will increase its voting influence at general meetings of the company. This private placement has been approved by the company's board of directors, including the independent directors, and no director opposed the transaction. No formal valuation was prepared in connection with the transaction and the company is not aware of any prior valuation prepared within the past 24 months that would be relevant to the transaction.
The company is exempt from the requirements of exchange Policy 5.9 and Rule 61-501 with respect to the preparation of an independent valuation in connection with the transaction, as no securities of the company are listed or quoted on the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the Nasdaq Stock Market or a stock exchange outside of Canada and the United States.
Exchange Policy 5.9 and Rule 61-501 also require, in the case of related party transactions, that issuers obtain minority shareholder approval, unless an exemption is available. The company is seeking to obtain, and the conversion of the subscription receipts into shares of the company is conditional on, minority shareholder approval.
The company is subject to the requirement of Rule 61-501 to prepare and file a material change report with securities regulators at least 21 days prior to closing of the private placement. Due to financial conditions and the fact that the subscription receiptholders will receive a refund of their subscriptions in the absence of shareholder approval, the company determined that it was not reasonable or necessary to wait 21 days prior to closing the financing. Copies of the material change report, which the company will be filing, will be available to shareholders on the System for Document Analysis and Retrieval (SEDAR) or by calling the company at 403-265-8444.
Admiral Bay Provides Update on Revloc Project
Tue Jul 3, 9:28 AM
http://ca.news.finance.yahoo.com/s/03072007/28/link-finance-news-admiral-bay-provides-update-revloc-...
CENTENNIAL, COLORADO--(CCNMatthews - July 3, 2007) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) reports that the Company has farmed out a 25% working interest in its Revloc Project to a private company (the "Farmee"). The Farmee earns a 25% working interest and an 82.5% net revenue interest by paying $1,000,000 (approximately $250/acre). Farmee will also pay 100% of the cost to drill and case seven test wells currently permitted with Admiral Bay acting as operator. In addition, the Farmee will be required to pay 100% of the cost to core and analyze all the coals in at least three of the seven wells. Upon running casing on the seventh well, the Farmee will have 60 days in which to exercise an option to purchase an additional 25% to 50% of the working interest for an additional $1,000,000 to $2,000,000 respectively. Drilling is planned for late summer or fall 2007. The Company will retain a 2.5% to 14.5% overriding royalty depending upon the lease. This will allow the Company to test the property with minimum risk. Subsequent to the drilling and Farmee's election, the parties go forward on a heads up basis and Admiral Bay will remain the operator of the Revloc project.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Curt Huber
Admiral Bay Resources Inc.
V.P. Corporate Development
(604) 628-5642 or Toll Free: 1-866-217-1620
Email: info@admiralbay.com
Website: www.admiralbay.com
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23
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Posts (Total)
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975
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Created
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11/20/04
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Free
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