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2006-12-04
Tyche Energy Corp. Develops Plan to Fully Extract Oil From Its Oklahoma Oil Field
DALLAS, Dec. 4, 2006 (PRIME NEWSWIRE) -- Tyche Energy Inc. (Other OTC:TYEG) announced it has hired a planning and development group to augment their oil extraction process at its recently acquired Oklahoma Oil Field called "Sidewell" (8 wells or 32??). The local group will add their expertise to implement a new plan to exploit the wells to maximum flow rates. Tyche Energy Inc. will commence re-working of these wells in mid-January. As a result of these efforts it is anticipated that within three months these wells will be in full production. The company will announce flow rates as the re-worked wells come on line.
2006-10-11
Royal Petroleum Corp. Announces the Acquisition of 32 Oil Wells in Oklahoma
CALGARY, Alberta, Oct. 11, 2006 (PRIMEZONE) -- Royal Petroleum Corp. (Other OTC:RYLP) announced that the company has completed a transaction acquiring 32 oil wells in Oklahoma. Royal Petroleum in the purchase takes possession of two wells that are currently producing and on line. The company intends to re-work the additional 30 wells, bringing them into completion on a two-wells-per-month production schedule.
Royal Petroleum Corp. considers this to be a landmark acquisition for the company.
Biogenerics Reports On Subsidiary's Recently Acquired Oil Wells
October 3, 2006
TYLER, Texas, Oct 3, 2006 (PrimeZone Media Network via COMTEX News Network) --
Biogenerics Limited (Pink Sheets:BIGN) announced that its subsidiary WW Oil & Gas Inc. has completed the purchase of 32 oil wells located in Oklahoma. WW Oil & Gas Inc. acquires 2 oil-producing wells and an additional 30 wells for re-completion. The assets were purchased with cash and shares.
Biogenerics' subsidiary expects to re-work on an average 2 oil-producing wells per month located on the 120 acres of property in Oklahoma.
Additionally, Biogenerics subsidiary Tyche Energy Inc. also announced that they have completed a purchase to obtain 8 oil wells in Oklahoma. This signals Tyche Energy's strategic intention to pursue a significant position in the U.S Oil & Gas industry.
Biogenerics Limited updates that it continues to work on the closings of LOIs announced in the August 31, 2006 press release.
FARMINGTON, N.M., Dec. 6, 2006 (PRIME NEWSWIRE) -- WW Energy Inc. (Pink Sheets:WWNG) subsidiary WW Oil and Gas Inc. has been granted full operational rights of the recently acquired oil wells located in Oklahoma. This is a significant and strategic step as the Company begins the re-completion of the wells. Of the 32 wells, 2 are completed and producing. WW Oil and Gas will implement the newly purchased oil rig and equipment to commence re-completion of the remaining 30 wells. The equipment will cut costs and should expedite production. The Company will report on progress from the Oklahoma Oil Fields as it becomes available...
PRVB expands in large area in the oild sands....
Choice Announces Third Quarter Financials
21:42 EST Tuesday, January 30, 2007
CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2007) - Choice Resources Corp. (TSX VENTURE:CZE) -
President's message:
For the nine month period ended November 30, 2006;
- The Company participated in 6 wells (2.7 net) during the three month period;
- The success rate was 88% on a net basis;
- Several new discoveries were made in the period at Whitecourt. Two wells (0.8 net) were drilled with a 100% success rate;
- A follow-up well was drilled 100% at Killam and is producing over 200 bpd as of Jan 31st;
- Production averaged 1,739 BOE/d compared to 1,329 BOE/d for the three month period (a 31% increase);
- Production for the nine months averaged 1,565 BOE/d compared to 1,350 BOE/d for the same period last year (a 16% increase);
- Production exceeded 1,830 BOE/d at quarter end and the Company is on target to meet it's 2,100 BOE/d exit rate for its fiscal year end;
- Cash flow from operations was $6.6 mm or $0.09 per share for the nine month period;
- Cash flow for the quarter improved approximately 100% from the Q2 2006 report;
- Operating expenses were $12.53/BOE vs. $13.76/BOE last year for the three month period;
- G&A was $587 m vs. $247 m for the three month period due to costs associated with the merger and the integration of DEEP Resources for a full three month period;
- Bank Debt is $32.3 million due to the merger with DEEP Resources and the accelerated drilling of Killam and Whitecourt;
- The bank credit facility was increased to $42.5 million basic and a $10 million development and acquisition line;
- A 3D seismic program was completed over 60 square miles in the Samson area of Alberta with several drillable prospects defined;
During the quarter the Company focused on adding production and integrating the DEEP assets. The merger, in November contributed about 400 BOE/d to the bottom line and added a significant growth area at Whitecourt. In our exploration portfolio, several new prospects were outlined in the Samson area farm-in covering 39 sections. A second well was drilled at Killam and put on stream late in the quarter. (100% working interest) The previously shot 3D program over this area in combination with the successful drilling to date on the property, has led the Company to plan for the drilling of 2 multi-leg horizontals in the fourth quarter and to plan up to 10 wells in the area for 2007. A further section of land was acquired in the area and the Company now has seven sections of land. (one section is 50% and the remainder is 100% working interest) At Carson creek the Company drilled and cased one well to be completed in the 4th quarter. This is the first well in an 18 section block.
Production was up during the quarter by 31% to 1,739 BOE/d compared to Q3 2005. This is mainly due to the consolidated results for DEEP. For the 9 month period production was up 16%.
Operating costs showed improvement during the period with a reduction of 9% and would have been reduced 15% except for a one time charge of approximately $0.80/BOE. Cash flow at 9 cents per share is below target due to lower natural gas prices. Significant price increases have been experienced lately and the Company will focus on additional near term production in the Killam and Whitecourt areas.
Cash flow from operations decreased on a year over year basis but has doubled from the second quarter 2006 report due to significantly increased prices. As prices improve and additional production is brought on stream the Company should experience significantly increased cash flows.
Our exploration play inventory continues to grow with some exciting new plays in the Whitecourt, Carson Creek, Worsley and Samson areas.
New milestones are expected as new areas are developed and production is brought on stream. Enclosed are the financial statements. Please refer to the associated notes filed on Sedar (in particular the notes to the annual audited statements), the operations summary and the management discussion and analysis.
Gordon D. Harris, President and CEO
Highlights
Third Quarter and Nine months ended November 30, 2006
Financial:
($000 except per unit and where noted)
(Per share #'s are based on the weighted average # of shares issued and
outstanding during the period)
Q3 Q3 YTD YTD
2006 2005 2006 2005
Gross Sales Revenue 6,954 7,892 17,383 19,302
Net Sales Revenue 5,840 6,280 14,390 15,281
Cash Flow 2,790 4,306 6,656 9,078
Per Share (basic) $ 0.03 $ 0.08 $ 0.09 $ 0.17
Per BOE $ 15.66 $ 35.61 $ 14.74 $ 24.46
Net Income 589 2,013 1,101 3,462
Per Share (basic) $ 0.01 $ 0.04 $ 0.02 $ 0.06
General & Administrative Expense 587 247 1,586 1,033
Capital Expenditures 10,839 8,100 22,884 14,074
Net Debt 36,187 8,392
Shares Outstanding (millions)
Weighted Average (basic) 82,303 57,733 72,913 54,822
Operations:
Production
Natural gas & sulphur (MCF/d) 9,474 7,511 8,757 7,679
Liquids (BBL/d) 160 77 106 70
BOE per day 1,739 1,329 1,565 1,350
Prices
Gas $/MCF $ 7.17 $ 10.43 $ 6.23 $ 8.36
Liquids $/BBL $ 44.68 $ 72.35 $ 70.70 $ 69.83
$/BOE $ 43.95 $ 65.27 $ 40.39 $ 52.01
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained herein constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements. The Corporation has adopted the standard of 6 Mcf:1 BOE when converting natural gas to BOE. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Choice Resources Corp.
Consolidated Balance Sheets
As At November 30, 2006 and February 28, 2006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
November 30 February 29
2006 2006
unaudited audited
Assets
Current Assets
Accounts receivable and prepaid expenses $ 12,763,984 $ 11,327,949
Property, plant and equipment (note 3) 104,151,836 59,823,970
Goodwill 8,878,919 5,030,905
------------- -------------
$ 125,794,739 $ 76,182,824
------------- -------------
------------- -------------
Liabilities
Current Liabilities
Cheques in transit $ 2,287,684 $ 1,824,843
Accounts payable and accrued liabilities 14,363,682 24,076,496
Obligation under capital lease - 463,805
Bank Loan 32,300,000 950,000
------------- -------------
48,951,366 27,315,144
Obligation under capital lease -
Asset retirement obligations (note 4) 2,670,541 1,525,300
Future income taxes 14,642,677 11,785,482
------------- -------------
66,264,584 40,625,926
------------- -------------
Shareholders' Equity
Equity instruments (note 5) 58,015,206 36,079,632
Contributed surplus (note 7) 2,612,770 1,676,862
Deficit (1,097,821) (2,199,596)
------------- -------------
59,530,155 35,556,898
------------- -------------
$ 125,794,739 $ 76,182,824
------------- -------------
------------- -------------
The accompanying notes are an integral part of the financial statements.
Choice Resources Corp.
Consolidated Statements of Earnings (Loss) and Deficit
Nine Months Ended November 30, 2006 and 2005
---------------------------------------------------------
---------------------------------------------------------
Three Months Ended Nine Months Ended
Nov 30, 2006 Nov 30, 2005 Nov 30, 2006 Nov 30, 2005
Revenue
Oil and
natural gas
sales $ 6,829,385 $ 7,631,728 $ 17,066,210 $ 18,984,516
Processing
Income 124,636 259,804 317,346 317,855
Royalties (1,114,304) (1,611,470) (2,993,713) (4,021,498)
-----------------------------------------------------------
5,839,717 6,280,062 14,389,843 15,280,873
-----------------------------------------------------------
Expenses
Production 1,982,482 1,664,016 5,439,311 4,888,999
General and
adminstrative 586,294 247,035 1,586,715 1,033,193
Interest on
bank loan,
loan payable
and capital
lease 480,165 63,230 706,945 281,144
Stock based
compensation
(note 6) 270,500 210,950 534,066 459,700
Depletion,
depreciation
and accretion 1,733,623 1,131,105 4,553,596 3,372,450
-----------------------------------------------------------
5,053,064 3,316,336 12,820,633 10,035,486
-----------------------------------------------------------
Earnings
before income
tax 786,653 2,963,726 1,569,210 5,245,387
Income taxes
Future Income
Tax 197,970 950,631 467,435 1,783,431
-----------------------------------------------------------
Net earnings 588,683 2,013,095 1,101,775 3,461,956
Deficit,
beginning of
period (1,686,504) (5,729,908) (2,199,596) (7,178,767)
-----------------------------------------------------------
Deficit, end
of period $ (1,097,821) $ (3,716,813) $ (1,097,821) $ (3,716,811)
-----------------------------------------------------------
-----------------------------------------------------------
Net earnings
per share
Basic $ 0.01 $ 0.04 $ 0.02 $ 0.06
-----------------------------------------------------------
-----------------------------------------------------------
Fully Diluted $ 0.01 $ 0.04 $ 0.02 $ 0.06
-----------------------------------------------------------
-----------------------------------------------------------
Weighted
average
number
of shares
outstanding:
Basic 82,302,608 57,773,355 72,913,229 54,822,142
Fully Diluted 82,763,637 60,118,592 73,374,258 57,557,902
FOR FURTHER INFORMATION PLEASE CONTACT:
Choice Resources Corp.
Gordon D. Harris
President and CEO
(403) 216-5821
(403) 216-5828 (FAX)
Email: info@choiceresources.ca
PRVB_____Powder River Completes Ninth Well in Weesatche Project
Tuesday January 2, 7:00 am ET
CALGARY, ALBERTA--(MARKET WIRE)--Jan 2, 2007 -- Powder River Basin Gas Corp. (OTC BB:PRVB.OB - News), a revenue generating producer, acquirer and marketer of crude oil and natural gas properties, today announced it has completed the ninth well in the Weesatche project in Goliad County, Texas.
ADVERTISEMENT
The Justen #5 tested 514 PSI and is currently set in production at 300 mcf per day. Pressure will be monitored over the next few weeks, and production may be increased.
The Company experienced weather delays on the project but expects to have the remainder of the first 14 well program completed during the first quarter of 2007.
"We are pleased that we can start 2007 by successfully completing the first well of the year with the continued record we enjoyed in 2006," stated Powder River Basin Gas Corp. CEO Brian Fox.
Powder River Basin Gas Corp. is active in production, acquisition, and marketing of crude oil and natural gas properties.
Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Contact:
Contacts:
Powder River Basin Gas Corp.
Investor Relations
Steve Weiss
(609) 529-3671
Email: info@powderrivergascorp.com
Website: http://www.powderrivergascorp.com
Princeton Research Inc.
Mike King
Market Analyst
(702) 650-3000
12:44 In Commodities, Mar crude oil (currently +1.32 to $53.90) and Feb natural gas (currently +0.182 to $7.501) received a boost after the Climate Prediction Center said temps are likely to fall below normal in the Eastern U.S. during Feb...
Choice Resources Provides Update on Recent Drilling Activities
Monday January 22, 8:00 am ET
CALGARY, ALBERTA--(CCNMatthews - Jan. 22, 2007) - Mr. Gordon Harris, President and CEO of Choice Resources Corp. (TSX VENTURE:CZE - News; "Choice" or the "Company") is pleased to report on recent drilling activity.
As previously announced, Choice completed drilling two multi-leg wells at Killam. The first well was evaluated this week and swab tested oil rates of over 500 boe/d (25 degree API). Choice, on Friday began the evaluation of the second multi-leg Killam well. Initial swab rates are similar to the first well and the well is continuing to clean up as the remaining drilling fluids are recovered. Swabbing of the second well will continue for another day. The working interest for these two wells is 100%. There have now been four wells drilled at Killam (a total of six legs), one of which is at 50% working interest. The Company is preparing to drill three additional multi-leg horizontal wells over the next two months. Further information on the Killam drilling program will be forthcoming when testing and further delineation drilling is completed.
Additionally Choice is fracture stimulating three recently drilled wells in the Viking area. Working interests are between 40% and 75%. In addition Choice has finished drilling three wells at Samson (central Alberta) with a working interest of 25% and two wells at Whitecourt have been completed and put on stream at rates of approximately 700 mcf/d per well. The working interest in the Whitecourt wells is approximately 40%.
All three wells drilled at Samson were cased with multi-zone potential and are being evaluated through perforating and testing. This program is the first phase of a 40 section farm-in and further wells are planned for the area in the spring.
The success of this recent drilling and completion work has set up a number of follow-up locations. The timing of these will be decided as management and directors finalize and approve the next fiscal year budget.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
ENERGY STRATEGIES
While it rarely pays to count on mid range weather forecasts, talk of a late January cold blast and talk of extremely warm 2007 could be suggesting that overall energy demand for 2007 could end up being stronger than current expectations. It should also be noted that the excess crude stocks situation in the US has been dramatically altered over the last three months, that Russia is considering an oil production cutback, and perhaps most importantly that sub-$54 crude oil pricing might begin to change attitudes inside OPEC. With the US crude stocks going from a burdensome 23 million barrel surplus in mid October to a current deficit of 9 million barrels (as of January 5th), one could conclude that a large portion of the US crude oil surplus condition has been remedied. With Venezuelan President Hugo Chavez recently moving to nationalize more US businesses in his country, it would certainly seem as if his regime is set to expand its socialist grip on that country, and that could eventually result in some domestic unrest, which in turn could end up threatening the flow of Venezuelan supply. However, we would suggest that the prospect of additional OPEC production cuts, regional oil shortages in Eastern European markets and perhaps a significant reduction Canadian Natural gas exports will end up being the forces that finally bring about a solid bottom in energy prices. In the near term, the market remains vulnerable to mild weather, macroeconomic concerns and the fact that the most recent US weekly inventory readings showed moderately large builds in product stocks. In short, we think that oil prices have moved into the bottoming range or more appropriately into a strong fundamental value zone and that a return to normal weather might be enough to end the long liquidation. In fact, with the chance of a January 20-22 Artic cold blast pushing down into the heart of North America, it is possible that the shorts will soon be presented with a change of conditions. Some traders think that a late burst of cold air will only push US January energy demand up toward average levels and therefore one should probably not be in a hurry to pick a major bottom in energy prices. However, the contraction in US crude oil inventories over the last three months is a major fundamental development, and if we had to guess, we would say that the change in the US crude stocks surplus condition was a primary reason by many OPEC members were not inclined to live up to their production cut promises. In the end, we think the Russian/Belarus conflict and the threat of reduced Canadian Natural gas exports will be the source of a coming major bottoming in oil prices. In the meantime, we can't rule out a spike down washout to the $50.00 level, but at the lower level some marginal oil production would be called into question, and we would assume that OPEC would quickly get over its shortcomings and rise to the occasion. Some OPEC members like Iran are already seeing a shortfall of revenues at the rate of $688 million per month (as compared to the end of December), and down by $1.9 billion per month from the 2006 highs. Usually OPEC decides to act when other factors (perhaps a change in the US weather) are already providing the basis of a bottoming, and that is why the oil market tends to form violent bottoms. We also think that the January price collapse resulted in a large portion of the speculative money being washed out of energy plays and that is it is now time for the real bullish fundamentals to kick back in.
KNEC looks to be good buy.
Check out this valuation of Knight Energy.
http://www.knightenergycorp.com/files/KNIGHT-RedChip%20Final%2027%20NOV%2006.pdf
RedChip puts them at $4.50 per share, PPS right now is around $2.20
HMGP up 400% golden cross soon! NO DEBT!! not another pinkie. CEO says no more dilution! production to be 1500 bbls a month.
West Hawk Development Corp.: Natural Gas Drilling has Commenced at Figure Four
Tuesday December 19, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 19, 2006 -- West Hawk Development Corp. ("West Hawk"), (TSX VENTURE:WHD.V - News)(FWB: H5N) through it's wholly owned subsidiary, West Hawk Energy (USA) LLC., is pleased to announce that the 24 hour notice for commencement of drilling operation was given to the Colorado Oil and Gas Conservation Commission, the lessors, and lessee on Friday, December 15th. Drilling of the first natural gas well on the Company's Figure Four property commenced over the weekend.
In accordance with the Drilling and Development Agreement signed with EnCana Oil & Gas (USA) Inc., this well is part of an overall drilling program for the Figure Four Ranch property which could accommodate up to a total of 256 wells (based on 20 acre spacing). West Hawk will receive a 100% Net Royalty Interest (NRI) on the first earning well drilled in each of the 32 Quarter Sections of the eight square mile property. The remaining infill wells will earn between 50% and 75% NRI.
According to the NI51-101 report prepared by Gustavson Associates, the property contains an estimated probabilistic technically recoverable resource of 529 Billion Cubic Feet in the P50% category, from the Williams Fork formation. The initial well, along with subsequent wells in this drilling program are meant to test and produce from both the Williams Fork formation as well as underlying formations believed to contain additional natural gas resources. It is anticipated that production levels and tie-in data will be available from this well in late January.
"Drilling of this first well marks a significant milestone in the Company's development as we shift from purely an exploration Company to now becoming a producer of high-demand energy products" according to Dr. John Reeves, Jr., CEO of West Hawk Energy (USA) LLC, under who's guidance the drilling and development agreement was signed.
In other news, the Company also wishes to announce the granting of incentive stock options to directors, officers and consultants to purchase up to a total of 1,300,000 common shares in the capital stock of the Company, exercisable for a period of two years, at a price of $0.75 cents per share. For further information on this or other Company activities, please refer to www.westhawkdevelopment.com or call the Company.
On behalf of the Board of Directors,
Dr. Mark Hart, President, CEO
West Hawk Development Corp.
About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the 500 billion cubic feet (as per NI51-101 report) Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement with EnCana Oil & Gas (USA) Inc.; the Fort Norman coal deposit in the Northwest Territories; the Groundhog coal deposit located in northwest British Columbia; and the Ellesmere Island, Nunavut Territory coal property.
Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has filed a National Instrument 51-101 Report on the Figure Four property. A National Instrument 43-101 report has been filed on the Groundhog property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.
Contact:
Contacts:
West Hawk Development Corp.
Dr. Wm. Mark Hart
President and CEO
(604) 669-9330
(604) 669-9335 (FAX)
Email: info@westhawkdevelopment.com
Website: http://www.westhawkdevelopment.com
--------------------------------------------------------------------------------
Source: West Hawk Development Corp.
13 Reasons to buy JDO on Monday:
1 Bloomburg recently listed it as one of the top companys to show a decrease in short interest:
http://www.bloomberg.com/apps/news?pid=conews&tkr=JDO:US
2 New CFO hired. Removes uncertainty and company will be able to issue more press releases
3 RSI at a historical low: approx 25
4 Volume tapering off = less sellers
5 JDO grew sales by 300% last year and is trading 2.3 forward Price/Sales compared to Natural Gas/Oil Industry growth of 4.0
6 Quarterly revenue growth of 123% vs industry of 50%
7 JDO has properties in the elephant Wyoming field Pinedale which is known for its reserves
8 JDO has significantly reduced expenses and cut overhead
9 JDO is cash flow positive
10 JDO is a real company that will communicate with its investors. I have spoke to Tom Jacobson and James Rundell numerous times
11 Insiders are buying stock
12 All energy stocks are oversold
13 Any kind of Middle East disturbance or terrorist attack and energy bounces back big time
,,,,,CNR,,,,,is gearing up for a run!!
This stock is HOT!
CanArgo Energy Corp. (AMEX: CNR ) has been rising sharply on a steady and daily basis!
They are expected to announce news on whether they've struck OIL!
http://finance.yahoo.com/q?s=cnr
Biogenerics Limited Issues Business Update
Friday November 17, 3:51 pm ET
TYLER, Texas, Nov. 17, 2006 (PRIMEZONE) -- The Board of Directors of Biogenerics Limited (Other OTC:BIGN.PK - News) is pleased to issue this current update on the progress of the Company's business.
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click here
Name Change of Company -- The Company anticipates changing its operational name in order to identify the Company more readily with the oil/gas industry. The Board projects this name change to occur during the first quarter of 2007. The potential new names for the Company are being considered at this time and a final name will be chosen in the near future. At that time, the Company will release a press release regarding this name change.
Authorized and Outstanding Common Shares of the Company -- As of the above date, the Company has approx. 376,500,000 outstanding shares of common stock and has authorized shares of common stock approved by the State of Nevada in the amount of 800,000,000. This increase in authorized shares was made in order to have shares available for the Company's future business needs which may include, but not be limited to, Joint Ventures, Asset Purchases, Management Compensation and any other necessary business transactions the Company's Board of Directors feels is necessary to carry on the Company's business.
East Texas Oil Field -- The Company has obtained in principal, a funding commitment to conclude this transaction, which is subject to and contingent upon the funder performing a satisfactory site and field inspection of the East Texas Oil Field. This will include interviewing personnel at the operations, obtaining commitments from Key Personnel to continue with the new operations in their current positions, auditing the existence of all active wells including past production reports in order to substantiate the monthly production of the field, inventory of all equipment and inventories for operations of the field and any other item they may feel necessary to complete this transaction with the Company and its joint venture partners. The Company has obtained assistance from Royal Petroleum Corporation in this transaction in order to obtain the financial strength to conclude this potential business transaction. At this time, the Company is endeavoring to push this transaction to close before this current calendar year end.
If successful, the Company will receive, as its part of the Joint Venture transaction an operational facility located in Central, Louisiana, that involves 30 working and active wells that will produce over 3500 bbls/oil/month which will be free and clear of all debt. This field has a Geologist Report showing its current value being in excess of $13 million. This project will produce an annual net income in excess of $1,800,000. In addition, the Company will receive a cash position of $4 million for further investment in the oil and gas industry via ``Farm-outs'' and direct working interest investments.
In summary, if concluded this joint venture transaction will place over $17 million of economic asset value into BIGN with no debt and a joint venture association with the operating company of the East Texas Oil Field for future business associations.
While the primary focus is completing the East Texas Oil Field Joint Venture transaction, the Board of Directors is also giving careful consideration to the following issues:
-- Restructuring the business agreements with Joint Venture partner Hydroslotter Corp., the NC-02 technology and considering alternative well renewal technologies to better serve the companies future requirements both technically and economically.
-- Expansion of current operations in New Mexico and Oklahoma as the company may determine to be viable.
-- Continued re-organizing of the virtual I.R Department providing more accessibility to company business activity while maintaining an open line of communication to shareholders.
-- The Company has received a notification from the Pink Sheets organization regarding new requirements and the Company will endeavor to meet the highest standards for future reporting and compliance.
These decisions will be tailored around the expected conclusion of the East Texas Oil Field Joint Venture transaction.
Summary -- The Company is entering into a new era in its business growth and development. In doing so, many changes are needed in order for the Company to take advantage of and to exploit the many business opportunities it has available to it.
The Company would like to thank its shareholders for their patience and understanding during this period of change and growth, which brings with it uncertainties and daily decisions to make for the benefit of all concerned. Your Company is worth your respect and is only as good as its shareholders say it is no matter how successful management is in performing its duties.
Website: http://www.bignltd.com
About Biogenerics Limited
Biogenerics is a diversified investment venture capital firm focused on exploiting and distributing domestic oil and gas reserves. Biogenerics also has joint venture activities with Tyche Energy Inc and Hydroslotter Corp.
Forward-Looking Statements
This press release contains ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
Couldn't agree more with you Derek. I actually found investorshub through a yahoo news group that is currently covering FSNR. Freestone has been very thorough in getting out information and is putting out some huge numbers! I can't wait to hear more news from the company and I am very curious about the chemical line it is pursuing as mentioned in the last PR. Thanks again for the update Derek.
FSNR >>> HUGE NEWS!
Freestone Resources, Inc. (FSNR.PK) Releases Carroll Unit # 1 Production Statistics
The final 72 hour production evaluation of the Carroll Unit # 1 was completed November 4, 2006 after the initial flow back period which began October 30. At current production levels and using today's prices, the Carroll Unit # 1 will produce an approximate net yearly profit of $1,040,688.00 for Freestone Resources shareholders. However, due to past well history and our consultant's analyses, we feel confident the production of oil and/or gas will eventually increase as the well is allowed to clean out over the extended flow-back period. Freestone has began negotiations with the contiguous mineral owners and have approximately 5000 acres available to lease and produce, and will diligently pursue this acreage over the following days, as verbal agreements with the mineral owners have already been made.
The well increased its oil production from 29 barrels of oil per day to an average of 39 barrels of oil per day. Water production dropped from 40 barrels of water per day to an average of 19 barrels of water per day. Natural gas production stabilized at an average of 270,000 MCF/day, while the wellhead pressure averaged about 300 PSI on an 18/64 inch choke with fluctuations from 200 PSI to over 2000 PSI.
Freestone Resources has employed a production consultant that is very experienced in the Freestone County gas play and has implemented a conservative production strategy for this well. Due to the depth and age of the well, its unique conformation, and the fact that it is still producing drilling fluids used in 1998, our consultant feels that an increased flow-back period would not only yield a more realistic gauging of the well potential, but would also allow Freestone Resources to begin generating an income stream immediately from oil sales. As of the date of this press release, Freestone Resources has 380 bbls of oil and condensate in a storage tank on site which should be sold next week for an approximate net value of $18,240.00 from the Carroll Unit # 1.
The next step involved in producing the Carroll Unit # 1 involves the construction of a production pipeline for the sales of natural gas. Freestone Resources will purchase a gas separator unit, meter run, 900 feet of newly laid 4 inch production line, and the purchase of an unused 3900 foot, 4 inch production line from an adjacent well. The entire 4 inch pipeline will be approximately 4800 feet long and will connect into a 6 inch sales line. The pipeline from the Carroll Unit # 1 to the sales line will be wholly owned by Freestone, and may be used to produce other wells drilled in the future.
Freestone Resources would also like to announce that we are in the final stage negotiations of a marketing agreement to become the distributor for a new and previously unavailable oilfield chemical line. This chemical line is the most innovative and effective group of solvents that our company or our contacts have ever discovered. The line revolves around a unique solvent which is designed to be used as a paraffin or asphaltine dispersant, emulsion breaker, corrosion inhibitor, cutting oil, and anti-sludge agent. The implementation of this product line in the oil and gas industry could yield a huge increase in production efficiency and profitability in wells produced by our customers in addition to wells owned by Freestone Resources. However, there are multiple potential uses for these products in every stage of oil and gas production and we are working with several chemists and petroleum engineers to explore these avenues. Freestone Resources directors expect to have the final draft of this agreement signed and have an in depth disclosure of the product line and agreement terms complete within the next 10 days. Once the contract is signed Freestone Resources will disclose all information by way of a press release and will add an additional page to our web site for investors and customers to learn more.
SAFE HARBOR STATEMENTS:
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Freestone Resources, Inc.
Lloyd Lane, 903-389-8817
info@freestoneresourcesinc.com
Source: Business Wire (November 10, 2006 - 10:11 AM EST)
News by QuoteMedia
www.quotemedia.com
Dems to restrict offshore drilling
http://news.yahoo.com/news?tmpl=story&cid=509&e=6&u=/ap/20061112/ap_on_bi_ge/offshore_dr...
Allied Energy Group, Inc. Announces 100% Successful Completion Rate for Its Coalbed Methane Developments
Tuesday November 7, 4:01 pm ET
BOWLING GREEN, KY--(MARKET WIRE)--Nov 7, 2006 -- Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) provided the following report regarding its coalbed methane developments in Rogers County, Oklahoma.
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Allied Energy Group, Inc. continues its 100% coalbed methane completion rate by completing three more coalbed methane wells for its joint venture project with the Mammoth Energy Group that lies to the east of its five-well program in Rogers County, Oklahoma. Two of these wells are on-line and the third well is being equipped for oil and gas production. Once these three wells are on-line, the Company will have a total of 15 producing gas wells with production averaging just under 700,000 cubic feet of natural gas per day.
In the next several weeks, although there can be no guarantees, the Company anticipates having 15 wells in production, 3 wells in completion, and 10-12 more wells scheduled to be drilled this year in Rogers County.
"Our immediate goal is to establish production from 28 wells before year end," said Steve Stengell, Allied's Sr. Vice President Operations. "Based on this area's production history and our results to date, we expect to achieve gross well production of 1,400,000 cubic feet of natural gas per day from 28 wells before the new year," he added, "which at current market prices approximates $10,000 per day before line charges, royalties, taxes and operating expenses."
For the long term, the Company has future plans to participate in the drilling of 150-200 coalbed methane wells in this area of Oklahoma.
About Allied Energy Group
Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The company employs geologists, petroleum engineers, seismic specialists, and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy Group's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the company firmly believes its natural gas exploration strategy should provide substantial growth to the company for the years to come.
For more information: www.alliedenergy.com
Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.
Contact:
Company Contact:
Steve Stengell
Allied Energy Group, Inc.
2800 Griffin Dr.
Bowling Green, KY 42101
Phone: 800-330-2535
Fax: 800-251-9322
Website: http://www.alliedenergy.com
Email: info@alliedenergy.com
Source: Allied Energy Group, Inc.
AGGI Allied Energy Group, Inc. Announces Plans to Drill 3 More Wells for Its Coalbed Methane Developments in Oklahoma
Tuesday November 7, 9:30 am ET
BOWLING GREEN, KY--(MARKET WIRE)--Nov 7, 2006 -- Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) is pleased to announce its plans to drill three additional wells for its coalbed methane program in Rogers County, Oklahoma.
"In the next several weeks, the Company should have 15 wells in production, 3 wells in completion, and 10-12 more wells scheduled to be drilled this year in and/or in close proximity to Rogers County," explained Steve Stengell, Allied's Sr. Vice President of Operations.
About Allied Energy Group
Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The company employs geologists, petroleum engineers, seismic specialists, and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy Group's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the company firmly believes its natural gas exploration strategy should provide substantial growth to the company for the years to come.
For more information: www.alliedenergy.com
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Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.
Contact:
Company Contact:
Steve Stengell
Allied Energy Group, Inc.
2800 Griffin Dr,
Bowling Green, KY. 42101
Phone: 800-330-2535
Fax: 800-251-9322
Website: http://www.alliedenergy.com
Email: info@alliedenergy.com
Source: Allied Energy Group, Inc.
"Upon completion of the 72 hour production evaluation, a full disclosure of the Carroll Unit # 1 production statistics and economic projections will be released."
It has been 4 days now and no word.
FSNR >>> Freestone Resources, Inc. (FSNR.PK) Announces Successful Recompletion of Carroll Unit # 1
Business Wire - November 2, 2006 9:00 AM (EDT)
FAIRFIELD, Texas, Nov 02, 2006 (BUSINESS WIRE) -- Freestone Resources, Inc.(FSNR) is very pleased to announce the successful recompletion of the Carroll Unit # 1. This completion creates an income stream for Freestone Resources with additional acreage for drilling potential to launch the company. The Carroll Unit # 1 is located in the Cheneyboro Field in northern Freestone County, and was originally drilled to a depth of 14,235 feet. The well was drilled and completed by Clayton Williams Energy, Inc. in March of 1998. Freestone Resources acquired a net 80 % lease on the surrounding 482.26 acres, including the original well site this year, with intentions of re-entering this particular well. On August 31, 2006, the original plugged well was located and a new well-head was fabricated onto the existing surface casing.
A 'Basic Energy Solutions' work-over rig began drilling out the first cement plug on Friday, October 13. Over the course of the next several days all plugs were drilled out, the casing was tested, and a packer was set at 9201 feet. Following release of the work-over rig, the well began its flow-back period, in which the well is allowed, under its own gas pressure, to push out water or drilling fluids that were located down-hole. During this phase, the water, drilling fluids and oil are collected in a flow-back tank, and the natural gas is flared off. As of Tuesday, October 31, the well was producing an estimated 300 MCF/D of natural gas per day and 29 barrels of oil per day, at a pressure of 400 PSI on a 30/64 inch choke. These numbers are expected to increase as all remaining water and drilling fluids are brought to surface by the down-hole pressure of the well. Once this production evaluation is completed, the well will be temporarily shut-in to allow for the construction of a pipeline in order to begin selling the natural gas produced.
Freestone Resources is very pleased with the outcome of this recompletion and wishes to thank all involved parties for their diligent work. Freestone Resources will now begin the process of obtaining additional acreage contiguous to the Carroll Unit, in order to begin implementing a drilling strategy to exploit the surrounding natural gas reserves. Freestone Resources CEO Lloyd Lane stated "Along with the acreage contiguous to Carroll Unit, Freestone is currently negotiating more leases in Freestone County in which all have re-entry prospects. It is in our shareholders best interest to increase our production holding in more than one field."
Photos of the current recompletion process of the Carroll Unit #1 can be seen on our website at www.freestoneresourcesinc.com. Updated photos and technical data will be added in the following days, as they become available. Upon completion of the 72 hour production evaluation, a full disclosure of the Carroll Unit # 1 production statistics and economic projections will be released.
About Freestone Resources, Inc.:
Freestone Resources, Inc. is an East Texas based Oil and Gas company which is actively pursuing opportunities in Texas and New Mexico oil and gas fields in the areas of lease acquisitions, exploration, production, recompletions, and waste disposal. Freestone Resources, Inc. is also diligently working to develop and utilize emerging technologies and products related to increasing oil and gas production, efficiency and profitability.
SAFE HARBOR STATEMENTS:
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
SOURCE: Freestone Resources, Inc.
Freestone Resources, Inc.
Lloyd Lane, CEO, 903-389-8817
info@freestoneresourcesinc.com
Copyright Business Wire 2006
AGGI News 4:01 PM Terry Bradshaw of the "Winner's Circle" Features Cole Halliburton of Allied Energy Group, Inc.
Monday October 30, 4:01 pm ET
BOWLING GREEN, KY--(MARKET WIRE)--Oct 30, 2006 -- Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) is proud to announce that it has been featured on the "Winner's Circle" hosted by NFL Hall of Fame member Terry Bradshaw.
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Mr. Bradshaw will be interviewing Cole Halliburton, President of Allied Energy Group, Inc. In this interview that will air on MSNBC, Mr. Halliburton will talk about the Company's present operations and goals for the future.
About Cole Halliburton
As the grandson to one of the founders of Halliburton Services, Inc., Mr. Halliburton also serves as President and CEO of Halliburton Operating Company with offices located in Dallas, Texas. Mr. Halliburton is a Certified Public Accountant (CPA) and Attorney at Law registered with the State of Texas. Mr. Halliburton received a Bachelor of Business Administration in Accounting from Texas A&M University and a Bachelor of Art in Psychology from the University of Texas at Austin in 1976. Mr. Halliburton received his Juris Doctor from the Southern Methodist University School of Law in 1980. As an owner/operator of oil and gas properties for over the last 20 years, Mr. Halliburton has participated in over 100 wells in the East Texas Basin and Gulf Coast areas of Texas. Mr. Halliburton's vast experience in all facets of the oil and gas industry, as well as his profound understanding of the legal system with respect to our industry, is a critical part of the Company's successful exploration strategy.
About Terry Bradshaw and the "Winner's Circle"
Terry Bradshaw is a four-time Super Bowl winner and host of the acclaimed national TV news series that highlights companies that represent the spirit and backbone of the American economy. The "Winner's Circle" airs nationally on Monday and Wednesday mornings between 7:45am and 8:30am during MSNBC's morning news hour. The series was created to highlight corporate success stories from around the country, and is committed to finding stories that reflect the perseverance and determination required for business leaders to succeed in extraordinary times.
About Allied Energy Group
Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The company employs geologists, petroleum engineers, seismic specialists, and financial analysts whose combined industry experience is essential to the success of each project. Allied Energy Group's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the company firmly believes its natural gas exploration strategy should provide substantial growth to the company for the years to come.
For more information: www.alliedenergy.com
Certain statements in this release and the attached corporate profile that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.
Contact:
Company Contact:
Steve Stengell
Allied Energy Group, Inc.
2800 Griffin Dr.
Bowling Green, KY 42101
Phone: 800-330-2535
Fax: 800-251-9322
Website: http://www.alliedenergy.com
Email: info@alliedenergy.com
Source: Allied Energy Group, Inc.
AGGI Mammoth Energy Group Doubles Project Scope in Oklahoma
Monday October 30, 11:53 am ET
DENVER, Oct. 30, 2006 (PRIMEZONE) -- Mammoth Energy Group Inc. (Other OTC:MMTH.PK - News) announced today that its wholly owned subsidiary, KMV Consulting, has doubled its acreage under lease in its shallow gas project in Rogers County, Oklahoma.
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When the property was acquired by KMV Consulting in May 2006, there were 1,075 net acres under lease and 9 producing wells. Over the last three months, KMV Consulting has worked to secure an additional 1,476 acres, putting the total at over 2,551 net acres. This acreage is sufficient to support approximately 80 wells. With the three recently completed wells, the total producing well count is now 15 wells, with several more scheduled to be drilled before year-end.
KMV has a 49.5% net revenue interest in this acreage and intends to lease a target of about 5,000 total acres. This project has tremendous upside since it is located on a shallow, blanket gas field where nearly every well drilled produces as it evidenced by the company's 100% success rate thus far through 15 wells.
KMV's recent joint venture with Allied Energy Group, Inc. (Other OTC:AGGI.PK - News) for $1.5 million has provided the basis for expanding the project. The funding will be sufficient to put between 25 and 30 wells on-line, at which point cash flow can fund the addition of new wells every month.
``The first step in this project after acquiring it was to refurbish existing wells, replace broken and failing equipment, and improve operating efficiencies,' said Christopher Miller, Mammoth's Chief Executive Officer. ``Before we could start leasing people, the second step was to show that we are proactively developing this area. So, we put 5 new wells on-line. People in this area have been leased by oil and gas companies since the early 1900s, and can be skeptical about a company's intent. Therefore, after accomplishing these two things, our team went to work and in just a couple of months more than doubled the project scope. It's a great start to what we believe will be a steady growth project.'
About KMV Consulting, Inc.
KMV, as a wholly owned subsidiary of Mammoth Energy Group, Inc., is focused on developing shallow gas projects in northeastern Oklahoma due to the low risk, blanket characteristics in the area that make it possible to drill and produce a well nearly every time. It is currently focused on developing its Rogers County, OK project into a property with between 5,000 and 8,000 total net acres leased where it can embark on a drilling program aimed at getting 150 to 200 wells on-line. With rigs readily available and shallow wells that can be drilled quickly, this project is positioned to grow consistently each month as new wells are brought on-line.
More information is available at the company's website at http://www.mammothenergygroup.com.
Cautionary Note: Certain statements in this release and the attached corporate profile that are not historical facts are ``forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as ``anticipate,' ``believe,' ``expect,' ``future,' ``may,' ``will,' ``would,' ``should,' ``plan,' ``projected,' ``intend,' and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.
Contact:
Emerging Markets Consulting
James Painter
(321) 206-6682
Source: Mammoth Energy
Choice Announces Non-Brokered Private Placement Expected to Benefit Charities
CALGARY, ALBERTA, Oct 23, 2006 (CCNMatthews via COMTEX News Network) --
Choice Resources Corp. ("Choice" or the "Corporation") (TSX VENTURE:CZE) announces its intention to complete a non-brokered private placement of up to 2,000,000 flow-through common shares at a price of $0.75 per share (the "Flow-Through Shares"). The Flow-Through Shares are being issued to investors that the Corporation expects will donate such shares to a charitable organization. In addition, as no finder's fees or commissions will be paid by the Corporation in connection with this private placement, Choice has volunteered to donate to a charitable organization that number of its common shares equal to 5% of the aggregate number of Flow-Through Shares issued pursuant to the private placement or to make an equivalent cash donation. The private placement is expected to be completed on or about October 27, 2006.
Philanthropy is taking a higher profile in Canada with several high net worth individuals making recent donations to organizations such as the Toronto General Hospital and the University of British Columbia. The National Post recently dedicated several pages to this topic. This offering could very well be the first, or one of the first financings of its kind in Canada.
This financing, while relatively small, would have several tangible benefits to Choice. There is no right of first refusal, no warrants and a minimum of costs. Also, some very high profile and high net-worth individuals would be exposed to Choice who otherwise might not become familiar with the Company.
The proceeds from the private placement will be used by the Corporation to fund the continued exploration and development of the Corporation's oil and natural gas properties.
All shares issued in connection with the private placement will be subject to a hold period that will expire four months and one day from the applicable closing date.
Completion of the private placement is subject to certain conditions, including receipt of all necessary regulatory approvals.
Black Dragon Resource Companies Acquires Additional 77 Wells in Caddo Pine Island Field
Black Dragon Resource Companies, Inc. (OTCPK: BDGR), announced today the acquisition of 77 wells on 11 leases comprising approximately 300 acres in the Caddo Pine Island Field of Caddo Parish Louisiana from Allen Petroleum, Inc. for a $350,000 note payable over 3 years and 500,000 shares of restricted common stock of Black Dragon.
"The wells are anticipated to provide production of approximately 18,000 barrels per year", according to Richard Michael, President." We are pleased to have had the opportunity to acquire this premier property which is located adjacent to our existing operation at Pine Island. We anticipate putting the property into production in the near term by converting two of the existing wells to salt water disposal. We anticipate that the remainder of the wells will only require limited equipment and repairs to be placed into production," added Mr. Michael.
"The properties are within three miles of the company's offices and facilities in Oil City Louisiana and will allow for ease of administration," stated Mr. Michael".
About Black Dragon:
Black Dragon Resource Companies, Inc. is oil and gas production company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.
Forward-Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Strategic Growth International, Inc.
Stan Altschuler / Richard E. Cooper, 212-838-1444
SAltschuler@sgi-ir.com / RCooper@sgi-ir.com
www.sgi-ir.com
or
Black Dragon Resources Inc.
Rick Michael, 512-442-4151
www.black-dragonoil.com
Source: Business Wire (October 18, 2006 - 5:17 PM EST)
BDGR's powerpoint presentation:::
http://www.black-dragonoil.com/ppt/BDGR_PPT_RedChip2.ppt
BDGR's Quarterly Report >>>
http://www.black-dragonoil.com/pdf/BDGR_Quarterly_Report.pdf
PRVB CEO Brian Fox reveals new Info, in just released interview with ericdavid.com regarding San Juan Basin, East McFadden and Brookshire.
Here's the link:
http://www.ericdavid.com/newsletter/mailer/prvb101306.html
FSNR>>>
October 13, 2006 - 8:04 AM EST
Freestone Resources, Inc. (FSNR) Updates Carroll Unit #1 Recompletion
A 'Basic Energy Solutions' work over rig is now in place to begin the recompletion of the Carroll Unit #1 gas well. The rig has been positioned to begin drilling out the first cement plug on Friday, October 13. Once the operation is started, the process to drill through all five plugs and re-enter the well will take approximately ten working days. At the end of the ten day work-over procedure the well will be evaluated for pressure and volume of gas and volume of oil produced. At that time, the well will be produced at its current rate of recovery or one of multiple stimulation techniques will be used to increase production. Afterwards, a production pipeline will be laid, in order to begin selling gas.
The Carroll Unit #1 is located in the Cheneyboro Field in northern Freestone County. The Carroll Unit #1 was originally drilled to a depth of 14,345 feet. We intend to re-enter to a total depth of 9,801 feet, which will allow us to exploit the Cotton Valley Formation. This will leave two bailout zones at shallower depths, being the Travis Peak and Rodessa Formations, both being historically prolific production zones. The well was drilled and completed by Clayton Williams Energy, Inc. in March of 1998. Freestone Resources is optimistic that this recompletion will proceed on schedule and will yield a highly productive well. The drilling consultant for this project stated, "All indications, past and present, tell me that this will be a very profitable well." Upon completion of a successful well, Freestone will obtain approximately another 3,000 acres adjacent to the property, in which Freestone Resources can drill up to 87 new gas wells. Photos of the current recompletion process of the Carroll Unit #1 can be seen on our website at www.freestoneresourcesinc.com. Updated photos and technical data will be added in the following days, as they become available.
Freestone Resources Inc. is also in negotiations to drill several new gas wells in Crockett County, Texas near the town of Ozona. This potential joint-venture will greatly enhance Freestone Resources' presence in the West Texas gas field, and could generate a significant quarterly profit for our shareholders.
About Freestone Resources, Inc.:
Freestone Resources, Inc. is an East Texas based Oil and Gas company which is actively pursuing opportunities in Texas and New Mexico oil and gas fields in the areas of lease acquisitions, exploration, production, recompletions, and waste disposal. Freestone Resources, Inc. is also diligently working to develop and utilize emerging technologies and products related to increasing oil and gas production, efficiency and profitability.
SAFE HARBOR STATEMENTS:
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Freestone Resources, Inc.
Lloyd Lane, 903-389-8817
info@freestoneresourcesinc.com
Source: Business Wire (October 13, 2006 - 8:04 AM EST)
News by QuoteMedia
SNRN up 16% today. Has NAV on proven reserves of $35 million. Trading today at a market cap of only $16 million. Most companies trade at a multiple of 1-3 x proven.
BDGR chart >>> Bottom of chart? RSI starting to go north.
FSNR >>> Freestone Resources
"Upon completion of a successful well, Freestone will obtain approximately another 3,000 acres adjacent to the property. Freestone can drill up to 87 wells on this property."
Snapshot taken from most recent PR.
FSNR >>> Featured on Oil Stock Advisor.
http://www.oilstockadvisor.com/currentpick.php
BDGR news >>> Black Dragon Resources Produces Approximately 12,000 Barrels or Equivalent for September
Tuesday October 3, 5:03 pm ET
Record Quarter Expected for the Third Quarter of 2006
Additional Progress Made with Caddo Lake and Arkana Facilities
OIL CITY, La.--(BUSINESS WIRE)--Black Dragon Resource Companies (OTCPK:BDGR), announced today that the company produced approximately 12,000 barrels or equivalent for the month of September, 2006. The 12,000 barrels of production should provide the Company with over $3.5 million of gross revenues on an unaudited basis for the first nine months of 2006.
"This is an exciting quarter for Black Dragon," stated Richard Michael, President. "Our third quarter ended September 30th should provide us with revenues of approximately close to $1.7 million, a record quarter for the Company. Our progress in bringing on line our projects has enabled us to anticipate revenues for the third quarter of 2006 to exceed revenues for the entire 2005 fiscal year, and for the first six months of 2006. Assuming completion of several of our previously announced projects under restoration, the Company anticipates that fourth quarter revenues should surpass the combined revenues for the first nine months of 2006."
Mr. Michael went on to say that Black Dragon expects to commence putting its Arkana field and its gas production into operation through the placement of a rigging facility on the site which is expected to happen sometime this week. Additionally, Black Dragon expects to commence shallow drilling at its Caddo Lake facility by mid-October.
"We continue to remain confident with our target of producing 30,000 barrels and equivalent a month by the end of the year without taking into accounts other acquisition and development opportunities that we continue to evaluate," added Mr. Michael.
ADMIRAL BAY PROVIDES OPERATIONAL UPDATE
- To date in 2006, the Company has drilled over 155 wells
Centennial, Colorado 3 October 2006
Admiral Bay Resources Inc. (TSX.V: ADB) is pleased to provide an update on its 2006 Development Program. Under the Program, the Company has targeted the drilling of 200 wells across all projects for 2006. To the end of September, the Company has now drilled 157 wells at its Kansas gas projects, bringing the total number of wells drilled and/re-activated in Kansas to 255 wells. The Development Program has focused on the Shiloh and Mound Valley projects, with the drilling of 103 wells at Shiloh and 48 wells at Mound Valley. In addition, Admiral Bay has drilled 4 wells at the Devon project and 2 initial test wells at Santa Rita project. The Company has also installed over 28 miles of pipeline to date in 2006.
There are currently 111 wells at the Shiloh and Devon projects on production, which are at various stages in the dewatering process. In addition, the first 19 wells at Mound Valley are dewatering and will be placed on production shortly. With increased availability of the pressure pumping services in the project area, Admiral Bay can now focus on completing and putting in to production, its large inventory of wells drilled during the summer months.
The Company continues to increase its CBM expertise in the field with the recent hiring of Mr. Lee Corbett, the former Production Supervisor with Quest Resource Corporation, a significant gas producer in the Cherokee Basin. Mr. Corbett will fill the same position with Admiral Bay and will be responsible for the implementation of the Company's Development Plan at its Kansas projects.
In addition, Questa Engineering Corporation of Golden Colorado, the Company's reserve engineers, are nearing completion of an updated reserve report for Admiral Bay's Kansas and Pennsylvania projects. The report will be as at July 31, 2006 and is expected to be released within the next 45 days.
PPTL's $214mil project...
Premium Pretroleum annouced awhile ago about a huge natural gas project up in Canada. They wanted to keep the testing on "tight holes status" so that they could buy 2 more crown lease zones without compitition, but I found out that they bought 8 zones! This has not been released yet, but will be anyday. Better hope on the train... here's the DD.
I found where Alberta lists all of the oil and gas crown leases, who purchased, how much land, and for how much money. Here's Alberta's public offerings website that I found the info, ( http://www.energy.gov.ab.ca/1051.asp ) Look at the pdf for May 31, June 28, and July 26. It says that PPTL purchased 2 zones of 256 hectares of land (4-11-001, 002) in May; 3 zones of 256 hectares of land (4-11-002) in June; and another 3 zones of 256 hectares of land (4-11-061) in July, for a total of 2048 hectares (or 5060 acres total) at approximately $670,000 total.
I called the CEO, Bruce Thomson, after work and he said yes, that they did purchase a substantial amount of land, but wouldn't tell me how much. He also said that by the end of the month that they would come out with a PR stating how much and the test results. In a previous PR, they stated that a gas well three quarters of a mile away from their property that it has been producing 3.4 mmcf per day... that's the same as 3400 mcf, where 1 mcf=1mmbtu, and a mmbtu was $5.60 yesterday. This multiplies out to $19,000/day or $570,000/month, or $6.9 million/year. And that's for one gas well. From what I've seen, there's about 1 well per 160 acres... If PPTL has 5060 acres, that's about 31 wells. If they all produce that same amount of gas and have that many wells, which are doubtful, then that would yield about $214 million/year.
I'm sure it would take awhile for them to drill that many gas wells, but if you look at the all-star team of PPTL, these guys probably have great networking. Infact, they said in a previous PR that they were about to get a rig within weeks because of networking. The one well PPTL drilled, they said that Schlumberger did the work. Also, these wells are around 1,800 feet! That is VERY shallow so the wells would be drilled fairly quick. Normally it takes a week to drill around 4,500 feet and cost around $150,000 per well to drill and case.
One PPTL's website ( http://www.premiumpetroleum.com/ ) they meantion about the Whitemud prospect. Mr. Thomson told me that they were no longer interested in the prospect and that they would focus on Boyne Lake. He also told me however, that there were 894 million outstanding shares. I don't know what the float is, but that still is a hefty amount. That amount is high mostly from the merger with ZooTech, where they had a 1 for 1 stock deal. Mr. Thomson also told me that after the PR is out, that they will be hiring an Investor Relations company to help get their name out. I also read that PPTL only owns 75% of Boyne Lake and that Habanero owns 20%. Habanero already released the flow rate of the gas, which was 3.9 mmcf per day. This is more than the near-by well. Also, there has been a spam email thing going around, which might have dropped the stock way down.
Take this info for what you want. As always, you should do your own due diligence! If this is want you want to call it.
BDGR news >>> Black Dragon Resources Anticipates Record Third Quarter
AUSTIN, Texas, Sep 27, 2006 (BUSINESS WIRE) -- Black Dragon Resource Companies, Inc. (OTCPK: BDGR)- announced today on an unaudited basis, that it expects to record quarterly revenues for the company for the third quarter ended September 30, 2006.
Gross revenues on an unaudited basis for the first two months of the 2006 third quarter are expected to be approximately $1.035 million as compared to $523,000 for the three months ended September 30, 2005, or an increase of almost 100%.
According to Richard Michael, President, "With gross revenues for the month of September expected to greatly exceed the revenues of approximately $545,675 recorded for August, we expect the quarter ended September 30th to have record results. We were able to achieve these results through execution of our acquisition program and making continuous progress developing our existing properties."
"In the third quarter of 2005, the Company's properties grossed $523,929 resulting from the sale of 7946 barrels of oil. In July and August of 2006 our properties have had gross sales of $833K of oil and $202K of gas. September shipments will exceed August."
During that period, progress has been made developing the eight existing wells in the Spider Field where new drilling is also proposed to begin in the near future. Steps to further production in the Arkana Field including the ordering of key equipment should further this product in the next few weeks. Work also continues steadily for the Hosston Field and Pine Island properties which will be greatly assisted by the addition of the drilling rig previously announced by the Company. We are also pleased to report that sites have been located and staked for drilling permits for the first 4 new wells on Caddo Lake.
Management continues to remain confident with its target of producing 30,000 barrels of oil or equivalent a month by year end 2006.
About Black Dragon:
Black Dragon Resource Companies, Inc. is oil and gas production company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.
Forward-Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
SOURCE: Black Dragon Resource Companies, Inc.
Strategic Growth International, Inc. Stan Altschuler, 212-838-1444 SAltschuler@sgi-ir.com or Richard E. Cooper, 212-838-1444 RCooper@sgi-ir.com www.sgi-ir.com or Black Dragon Resource Companies, Inc. Rich Michael, 512-442-4151 rick.michael@bcglobal.net
Copyright Business Wire 2006
BDGR news >>> Black Dragon Resources Acquires First Major Drilling Rig. Significant Production Increase and Cost Savings Expected Immediately.
AUSTIN, Texas, Sep 26, 2006 (BUSINESS WIRE) -- Black Dragon Resource Companies, Inc. (OTCPK: BDGR)- announced today that it has significantly increased its production capacity through the acquisition of a drilling rig for a purchase price of approximately $400,000 to be used at its Hosston Field and Pine Island properties. This drilling rig is being readied for service, and the necessary Salt Water Disposal wells and new infill production wells are expected by the company to be drilled during the fourth quarter of 2006.
According to Richard Michael President, "The addition of this drilling rig which had an original cost of over $2 million, will provide significant cost savings over the next several months. We anticipate that the savings will exceed the rig purchase price in less than six months. There should be a significant increase in production both at Pine Island and the Hosston field resulting from this new drilling and utilization of the rig," added Mr. Michael."
Mr. Michael added that "the Company anticipates bringing additional rigs of this type into our production process in the coming months. We continue to make significant enhancements to our operation and will to ensure the lowest production costs and highest production levels possible."
About Black Dragon:
Black Dragon Resource Companies, Inc. is oil and gas production company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.
Forward-Looking Statements:
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
SOURCE: Black Dragon Resource Companies, Inc.
Black Dragon Resource Companies, Inc. Rick Michael, 512-442-4151 rick.michael@sbcglobal.net or Strategic Growth International, Inc. Stan Altschuler / Richard E. Cooper 212-838-1444 SAltschuler@sgi-ir.com RCooper@sgi-ir.com Copyright Business Wire 2006
Thunder Horse down til 2008
BP repairs to delay Thunder Horse opening until 2008
By Gabriel Madway
9/18/2006 11:43:12 AM
SAN FRANCISCO (MarketWatch) -- BP plc said Monday it does not expect production from its Thunder Horse field in the Gulf of Mexico to begin before the middle of 2008 after the company said it plans to retrieve and rebuild all the site's sea-bed production equipment. Tests carried out over the past four months revealed metallurgical failure in components of the subsea system, the company said. BP added that it was too early to estimate the additional costs involved in replacing the system. The Thunder Horse field, discovered in 1999, is designed to process 250,000 barrels of oil a day.
Oil and XOI Corrections
Adam Hamilton, CPA
September 15th, 2006
http://www.321energy.com/editorials/hamilton/hamilton091506.html
BDGR... another big PR released today >>>
Black Dragon Predicts Gross Gas Sales to Exceed $245,000.00 (35 Million mcf) and Oil Production to Reach up to $780,000.00 (13,000 Barrels) in the Month of September Black Dragon's First Million Dollar Month
Sep 5, 2006
AUSTIN, Texas
Gas Sales Could Rise By 50% in October
President of Black Dragon (PINK SHEETS: BDGR), Rick Michael, wants to make it aware to the company's shareholders and other investors of the magnitude of the recent acquisitions. The 3,000 acres on the Arkana lease and the 1,275 acres on the Spider lease should double the size of Black Dragon's oil and gas reserves. The company has shallow and deep rights on both of these large acre leases. Black Dragon is no longer an oil and gas Recovery Company but a full blown oil and gas supplier.
Mr. Michael went on to say, "Both the Arkana and the Spider leases should bring the company huge revenue for the next several years. The wells on the Arkana lease, which is in the cotton valley zone will bring an average of 50 to 100 barrels ($3000 to $6000) of oil a day per well and 400,000 cubic feet to 1 million cubic feet of gas ($2800 to $7000) per well daily. The Spider lease, which is in the Paluxy zone, will produce 15 to 25 barrels of oil ($900 to $1500) per well a day with 100,000 to 200,000 cubic feet of gas ($700 to $1400) per well daily". Include this with a record breaking month of August with 10,000 barrels of oil or equivalent shipped from are already production and all this with out the Gemini acquisition it is time to make all investors notice.
In the month of December, Black Dragon gas sales should reach 70 million cubic feet ($490,000) a month with oil production close to 22,000 barrels of oil ($1,320,000) a month. This gives the company an excess of a 1,000 barrels of oil and oil equivalent a day. The additional use of a full time drilling rig in the month of December could prove these totals to be underestimated.
The audit of Black Dragon will be ready by September 15th and the company plans to seek a listing on the American Exchange. Mr. Michael recommends reading the Red Chip report (http://www.redchip.com/visibility/about.asp?page=requestBDGR) where they state that Black Dragon has 4 barrels of oil or oil equivalent for every share. This report was made prior to and does not count the acquisitions of the Arkana and Spider leases.
Source: Black Dragon Resource Companies, Inc.
----------------------------------------------
Black Dragon Resource Companies
Inc.
Austin
Rick Michael
512-442-4151
www.black-dragonoil.com
BDGR... 2006 news headlines >>>
9/1/2006 - Black Dragon Resources announces record sales of 10,000 barrels of oil.
8/31/2006 - Black Dragon announces record sales of 10,000 barrels of oil and or equivalent for the month of August 2006; substantial progress made in bringing into production recent acquisitions.
8/28/2006 - Black Dragon Resource Companies announces new accretive acquisition of working interest in Spider Field located in Desoto Parish, LA..
8/23/2006 - Black Dragon announces revenues for first six months of 2006; 400% year to year growth.
8/14/2006 - Forty companies representing thirty industries set to present at the RedChip Small-Cap Conference in New York, August 15-16, 2006.
8/8/2006 - Black Dragon Resource Companies, Inc. CEO featured in exclusive interview with WallSt.net.
8/7/2006 - Management of Black Dragon Resource Companies Inc. to be featured on Radio Broadcast on Monday, August 7, 2006; management to discuss growth of the company to date, as well as plans for remainder of the year.
8/3/2006 - Black Dragon acquires 19 oil and gas wells; 914 acres in Hosston Field, Caddo Parish, Louisiana.
8/2/2006 - Black Dragon Resource Companies continues to add wells to production; additional 20 wells added to Hosston Field and 12 wells to Haynesville Field; will add additional 4,000 barrels a month to production.
7/31/2006 - Black Dragon Resource Companies, Inc. announces the acquisition of 3,000 acre oil and gas mineral lease.
7/17/2006 - RedChip Visibility issues quarterly research update on Black Dragon Resource Companies, Inc..
6/29/2006 - Black Dragon Resource Companies, Inc. announces 52 wells in Hosston and 19 in Caddo Lake are restored to production; 30,000 barrels per month and reaffirms 30,000 barrels per month target by year end.
6/20/2006 - RedChip Visibility releases investor newsletter update on Black Dragon Resource Companies, Inc.
6/15/2006 - Black Dragon Resource Companies, Inc. announces three oil wells are completed and producing over fifteen barrels a day.
6/13/2006 - Black Dragon Resource Companies, Inc. puts two more Paluxy wells back on production.
6/12/2006 - Black Dragon on Caddo Lake; Black Dragon has crew working on Caddo Lake right now.
6/9/2006 - Black Dragon Resource releases completed reserve analysis; Wexco Inc. report finds in excess of 73 million barrels of recoverable oil reserves on Black Dragon properties.
6/1/2006 - Black Dragon Resource Companies signs agreement to acquire Gemini Explorations, Inc. for $25 million.
5/31/2006 - Black Dragon commences a program to re-open 43 wells at Caddo Lake property originally drilled by Gulf Oil Company; will add approximately 7500 barrels a month in production.
5/24/2006 - Black Dragon Resource Companies Inc. adds nine wells with over 800 barrels a month with additional production; buys another two leases, closing on a third lease next week; revenues to grow by over $180,000.
4/28/2006 - Black Dragon Resource Companies Inc. engages independent auditor.
4/18/2006 - Black Dragon Resource Companies, Inc. to present at RedChip Small-Cap Conference in Hollywood, Florida, April 28, 2006.
4/7/2006 - Black Dragon Resource Companies announced today that they have acquired another 20 oil and gas wells.
4/3/2006 - Black Dragon Resources Companies, Inc. revenue momentum continues throughout 2005; company provides 2006 revenue target.
3/30/2006 - Black Dragon Resource releases completed reserve analysis; Wexco Inc. report finds in excess of 66 million barrels of recoverable oil reserves on Black Dragon properties.
3/20/2006 - Black Dragon announces acquistions of eight additional wells; third property acquired by company since first quarter.
3/16/2006 - RedChip Visibility initiates research coverage on Black Dragon Resource Companies, Inc. with price target of $4.00.
3/10/2006 - Black Dragon completes acquisition of 70 additional oil and gas wells producing 500 BOE per month; issues guidance for year end production.
3/3/2006 - Black Dragon Resource Companies, Inc. CEO featured in exclusive interview with WallSt.net .
2/24/2006 - Black Dragon continues expansion activities; company enters into agreement to acquire 70 additional oil and gas wells producing 400 to 700 BOE per month; Record production expected for February.
2/16/2006 - Rick Michael, President of Black Dragon Resources Companies, Inc. updates shareholders in internet radio interview.
2/13/2006 - Black Dragon Resource closes on two million financing to drill seven new gas wells.
2/7/2006 - Petrol Industries awarded contract to build seven mile gas line for Black Dragon; contract expected to generate $750,000 to $1 million in annual revenue.
2/6/2006 - Black Dragon Resource completes purchase of Caddo Lakes mineral rights; to add over $100,000 a month in cash flow.
1/19/2006 - Black Dragon ranked as number 22 highest rated oil and gas company in Louisiana based upon production.
1/10/2006 - Black Dragon's increases month of December and fourth quarter production estimates; company on target to produce 25,000 barrels per month of oil by June 2006.
Crude oil futures keep falling, drop below US$69 a barrel
The Associated Press
Published: September 4, 2006
VIENNA, Austria Oil prices dropped below US$69 a barrel Monday, falling below 10-week lows despite continued jitters over the standoff between Iran and the international community over Tehran's nuclear program.
The crude contract began its decline Friday after the United Nations failed to impose sanctions on Iran for refusing to stop its nuclear enrichment program. Also easing energy prices were strong inventory data, a more-subdued forecast for this year's hurricane season and a mixed U.S. jobs report — suggesting fuel demand probably won't surge sharply.
Light, sweet crude for October delivery fell 54 cents to US$68.64 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. The contract fell US$1.07 Friday to close at US$69.19 a barrel — its lowest settlement price since finishing at US$68.94 on June 20.
Brent crude slipped 75 cents on London's ICE Futures exchange, trading at US$68.40.
Nymex floor trading was closed Monday for the Labor Day holiday in the U.S.
"Bearish news such as the unexpected increase of U.S. gasoline stocks and the downgrading of the first hurricane of the season outweighed the fact that the ultimatum issued to ... Iran elapsed without a solution," said Vienna's PVM Oil Associates.
Iran, the second-largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, defied the U.N. Security Council's Thursday deadline to halt its nuclear program. Traders have been worried that Iran might block oil exports if punished by the U.N. At this point, though, American officials and others say no action will be sought before a key European diplomat meets with Tehran's atomic energy chief this week to seek a compromise.
U.N. Secretary General Kofi Annan said Sunday after meeting with Iranian President Mahmoud Ahmadinejad that Iran's leader wants negotiations on the country's nuclear program but will not halt uranium enrichment ahead of talks.
Gasoline futures dropped nearly 2 cents to US$1.7155 a gallon (3.8 liters) while heating oil fell more than two cents to US$1.9470 a gallon. Natural gas prices rose 3 cents to US$5.910 per 1,000 cubic feet.
Hurricane forecaster William Gray's team on Friday downgraded for the second time its expectations for the 2006 Atlantic storm season. The team, based at Colorado State University, called for a slightly below-average year, with only five hurricanes instead of the seven previously forecast.
Last year, hurricanes Katrina and Rita showed how vulnerable oil and natural platforms and pipelines are to powerful storms, and how severe flooding along the Gulf Coast is capable of shutting down oil refineries and natural-gas processing plants. The region's fuel production was cut, tightening supplies and sending prices higher.
VIENNA, Austria Oil prices dropped below US$69 a barrel Monday, falling below 10-week lows despite continued jitters over the standoff between Iran and the international community over Tehran's nuclear program.
The crude contract began its decline Friday after the United Nations failed to impose sanctions on Iran for refusing to stop its nuclear enrichment program. Also easing energy prices were strong inventory data, a more-subdued forecast for this year's hurricane season and a mixed U.S. jobs report — suggesting fuel demand probably won't surge sharply.
Light, sweet crude for October delivery fell 54 cents to US$68.64 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. The contract fell US$1.07 Friday to close at US$69.19 a barrel — its lowest settlement price since finishing at US$68.94 on June 20.
Brent crude slipped 75 cents on London's ICE Futures exchange, trading at US$68.40.
Nymex floor trading was closed Monday for the Labor Day holiday in the U.S.
"Bearish news such as the unexpected increase of U.S. gasoline stocks and the downgrading of the first hurricane of the season outweighed the fact that the ultimatum issued to ... Iran elapsed without a solution," said Vienna's PVM Oil Associates.
Iran, the second-largest producer in the Organization of Petroleum Exporting Countries after Saudi Arabia, defied the U.N. Security Council's Thursday deadline to halt its nuclear program. Traders have been worried that Iran might block oil exports if punished by the U.N. At this point, though, American officials and others say no action will be sought before a key European diplomat meets with Tehran's atomic energy chief this week to seek a compromise.
U.N. Secretary General Kofi Annan said Sunday after meeting with Iranian President Mahmoud Ahmadinejad that Iran's leader wants negotiations on the country's nuclear program but will not halt uranium enrichment ahead of talks.
Gasoline futures dropped nearly 2 cents to US$1.7155 a gallon (3.8 liters) while heating oil fell more than two cents to US$1.9470 a gallon. Natural gas prices rose 3 cents to US$5.910 per 1,000 cubic feet.
Hurricane forecaster William Gray's team on Friday downgraded for the second time its expectations for the 2006 Atlantic storm season. The team, based at Colorado State University, called for a slightly below-average year, with only five hurricanes instead of the seven previously forecast.
Last year, hurricanes Katrina and Rita showed how vulnerable oil and natural platforms and pipelines are to powerful storms, and how severe flooding along the Gulf Coast is capable of shutting down oil refineries and natural-gas processing plants. The region's fuel production was cut, tightening supplies and sending prices higher.
BDGR... huge news!!! >>>
Black Dragon Announces Record Sales of 10,000 Barrels of Oil and or Equivalent for the Month of August 2006; Substantial Progress Made In Bringing Into Production Recent Acquisitions
Black Dragon Resource Companies ((OTCPK: BDGR) announced today that it had achieved record monthly oil and oil equivalent sales in the month of August. The company recorded sales in excess of 10,000 barrels of oil equivalent in August.
The company further announced that they have completed an additional well which has returned to production at the recently acquired Spider Field, located in Desoto Parish, Louisiana. The fourth well purchased will be brought back to production in the next ten days. This will increase the 10,000 production by at least 10 percent upon the full completion of all four wells at the Spider Field.
Substantial progress was also made in bringing into production the facilities at the Arkana field located in Bossier Parish, Louisiana. The Company has successfully hooked up one of the two existing wells to the Apache Corporation gas sales pipeline and to tank batteries for oil production, and is currently generating production of oil and gas. The company anticipates hooking up the additional well sometime during the month of September.
"This is the largest month in the history of the company and we are making significant progress toward our year end goal of 1,000 barrels per day," according to Mr. Richard Michael, President of Black Dragon.
Black Dragon also reported today an important acquisition of equipment to its plant and equipment infrastructure. The Company has obtained exclusive use of a drilling rig capable of drilling to a depth of 3,000 feet. This equipment allows the company to aggressively pursue its previously stated program of drilling new wells on its existing properties and increase its salt water disposal infra-structure adding significant production in the fourth quarter.
According to Mr. Michael, recoverable oil in place as estimated in recent engineering reports without the inclusion of these two newest properties is in excess of 168,000,000 barrels.
About Black Dragon:
Black Dragon Resource Companies, Inc. is oil and gas production company focused on the acquisition of mature, producing and existing U.S. oil and gas fields. The Company's focus on mature, domestic oil fields eliminates exploration risk, reducing costs, and provides immediate generation of income in a niche market where larger independent and major oil companies are not positioned to compete.
Forward-Looking Statements
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Black Dragon Resource Companies, Inc.
Rick Michael, 512-442-4151
www.black-dragonoil.com
or
Strategic Growth International, Inc.
Stan Altschuler / Richard E. Cooper, 212-838-1444
SAltschuler@sgi-ir.com / RCooper@sgi-ir.com
Website: www.sgi-ir.com
Source: Business Wire (August 31, 2006 - 5:22 PM EST)
News by QuoteMedia
www.quotemedia.com
DJ US GAS: Nymex Futures Rally On Contract Expiry
By Jeanine Prezioso
Of DOW JONES NEWSWIRES
HOUSTON (Dow Jones)--Natural gas futures took a roller-coaster ride Tuesday
as traders closed out short positions on the last day of the September
contract, sending prices higher.
September natural gas futures on the New York Mercantile Exchange settled
34.4 cents higher Tuesday at $6.816 per million British thermal units.
Front-month futures fluctuated 87 cents throughout the day, from a low of
$6.08/MMBtu to a high of $6.95/MMBtu.
Gas futures rallied Tuesday after a 10% drop-off Monday following news that
Tropical Storm Ernesto was headed east towards Florida, avoiding the Gulf of
Mexico energy complex.
Traders and analysts generally expect volatility on a day when the futures
contract expires, since traders need to close out their positions or take
delivery of physical gas.
"Obviously, the buyers were more aggressive than the sellers," said Kyle
Cooper, director of research with IAF Advisors in Houston. "They can't hold
onto the September contract tomorrow, so they had to get out or take delivery
of gas."
With no fundamental changes driving the market, the rally was prompted by
short-covering, Cooper said.
The October gas futures contract becomes the front-month contract Wednesday
and expires Sept. 27.
January and February futures contracts lost 62 cents Tuesday, but maintained
their respective $10 and $11 highs on continued hurricane jitters, as well as
worries about a frigid winter and gas supply crunch ahead.
Two tropical waves with associated strong thunderstorms were being tracked in
the Atlantic, the National Hurricane Center reported Tuesday.
The tropical disturbances are giving traders an added reason to drive up
prices, said George Hopley, a gas analyst with Barclays Capital in New York.
He added that prices for winter-month gas futures are high, in part, because
gas competes with heating oil and other fuels for winter heating, and prices
for those commodities are high. Although crude oil futures settled lower on
Tuesday at $69.71 a barrel, prices for oil and related products are still
considered to be generally high, Hopley said.
Nymex September heating oil futures settled 2 cents down Tuesday at $1.94 per
gallon.
FUTURES SETTLEMENT NET CHANGE
Nymex Sep $6.816 +34.4
Nymex Oct $6.876 +6.4
Nymex Nov $8.800 -19.2
CASH HUB RANGE PREVIOUS DAY
Henry Hub $6.16-$6.33 $6.45-$6.59
Transco 65 $6.40-$6.60 $6.50-$6.75
Tex East M3 $6.77-$6.94 $6.95-$7.20
Transco Z6 $6.81-$6.95 $6.90-$7.10
SoCal $5.89-$5.98 $6.08-$6.16
El Paso Perm $5.65-$5.78 $5.87-$6.02
El Paso SJ $5.58-$5.67 $5.76-$5.88
Waha $5.68-$5.80 $5.96-$6.10
Katy $6.00-$6.12 $6.27-$6.45
Source: Cash market prices from the InterContinental Exchange.
-By Jeanine Prezioso; Dow Jones Newswires; 713-547-9209;
jeanine.prezioso@dowjones.com
(END) Dow Jones Newswires
08-29-06 1728ET
************************************************************
To hell with the gas tank,let's drink it!
Two Iowa State University professors are researching how to easily, and cheaply, turn fuel ethanol into food-grade alcohol to be used in beverages, pharmaceuticals and personal care products.
ERHE appoints Wanker?
We now have a Nigerian Chairman, Ado Yakubu Wanka, and a new Nigerian
Executive Director, Morrison Anthony Fiddi, of the JDA.
On the surface this is consistent with the scheduled changes to the
executive of the JDA and alternating between a Nigerian and a Sao
Tomean as Chairman. As ever, however, there is more to this than
meets the eye.
Fiddi is from Bayelsa State in the Niger Delta, is a Christian and,
most importantly, is from the same area of the state as Minister of
State for Petroleum Resources and OPEC President, Dr. Edmund Daukoru.
Fiddi is known to be a very close confidante of Daukoru.
Wanka is from Bauchi State in the northest, is a Muslim, has an
extensive oil industry and banking background and, most importantly
for ERHC, is a long-standing associate of Emeka Offor. He an Offor
get on very well and Wanka not someone who is going to throw a spanner
in the Offor works.
The fact that both appointments were approved by Daukoru and Obasanjo
confirms the continued good relations Offor enjoys with both Daukoru
and Obasanjo and the good relations between Daukoru and Obasanjo.
The significance of these appointments and the flow-through benefit to
ERHC shareholders cannot be overestimated.
As I have said, there continues to be a great deal happening beyond
what we see in the US.
Storm Cat Announces Second Quarter 2006 Financial Results
Tuesday August 15, 9:15 am ET
DENVER & CALGARY, Alberta--(BUSINESS WIRE)--Aug. 15, 2006--Storm Cat Energy Corporation (AMEX: SCU - News; TSX: SME - News) today announced second quarter 2006 financial and operating results and recent acquisition and financing activity subsequent to the second quarter 2006.
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Financial Overview
For the three months ended June 30, 2006 Storm Cat reported oil and gas revenues of $1.6 million, an increase of 36% over the second quarter of 2005. The increase in revenues was primarily due to a 28.9% increase in production.
The Company reported a net loss of $1.2 million or ($0.02) per share for the second quarter of 2006 as compared to a net loss of $3.2 million or ($0.07) per share in second quarter of 2005. The weighted average number of shares outstanding increased to 66.5 million shares in the second quarter of 2006 as compared to 44.8 million weighted average shares outstanding for the comparable quarter 2005. The increase in shares outstanding was due to three private placements that were undertaken in the past 12 months as well as the exercise of outstanding warrants and options.
Operating Overview
During the second quarter of 2006, the Company drilled 35 wells in the Powder River. For the full year, the Company plans a total of 73 wells in the Powder River. The Company had five wells in Elk Valley on production with total gas production of 250 Mcf/d. The 2006 Phase-1 Elk Valley drilling program (which consists of up to six wells) was started in August.
Net production increased 28% to 236.0 MMcf in the second quarter of 2006 from 184.1 MMcf as compared to the comparable prior period.
For the second quarter of 2006, the Company reported average gross daily production was 3,850 Mcf/d (2,670 net) as compared to 3,800 Mcf/d (2,547 Mcf/d net) for the first quarter of 2006. Current production is averaging 5,000 Mcf/d gross (3,640 Mcf/d net).
The average realized sales price of natural gas was $6.82 in second quarter 2006 up from $6.44 in the same period of the prior year.
A detail operational update was issued Thursday, July 27, 2006 and can be viewed on the Company's website.
J. Scott Zimmerman, President and Chief Executive Officer commented, "We continue to make progress in increasing our production through acquisitions and drilling activities. Our pending acquisition in the Powder River Basin will further strengthen our presence in the basin and positions the Company well for further production increases and operating efficiencies." Added Mr. Zimmerman, "This acquisition combined with our recently closed $250 million revolving credit facility positions the Company for future growth."
Outlook
For the current year, Storm Cat's budgeted capital expenditure program is $67.5 million as compared to $20.0 million in 2005. The Company expects to drill up to 85 wells, the majority in the Powder River Basin. The Company is forecasting a daily gross production rate at year end of at 18,000 Mcf/d (10,500 Mcf/d net).
Subsequent Events:
Recent Acquisition Developments
On July 21, 2006 the Company announced its intention to purchase approximately 25,200 gross acres (17,000 net acres) in the Powder River Basin coalbed methane (CBNG) play for approximately $30.7 million in cash. The acquisition, located in and around Storm Cat's core Powder River operating area, allows the Company to capitalize on economies of scale and operating efficiencies. The acreage is approximately 81% undeveloped and 90% of the acreage is located on U.S. federal lands. Storm Cat is acquiring approximately 10.2 billion cubic feet (Bcf) of proved reserves, 9.6 Bcf of probable reserves and 7.8 Bcf of possible reserves. Production from the acquired properties is approximately 6,600 Mcf/d, (approximately 3,000 Mcf/d net), of natural gas from 64 producing CBNG wells, 46 of which will be operated by Storm Cat. Pro forma for the acquisition, Storm Cat will have approximately 19.8 Bcf of proved reserves, 13.8 Bcf of probable reserves and 7.9 Bcf of possible reserves. The transaction is expected to close on or before August 29, 2006. Upon closing, the effective date of the transaction will be July 1, 2006.
Recent Financing Completed
In August, the Company closed a US $250 million revolving line of credit facility secured by mortgages on the Company's Powder River Basin assets. The credit facility is available to provide funds for the exploration, development and/or acquisition of oil and gas properties and for working capital and other general corporate purposes.
Also in August, the Company received a signed commitment letter from JPMorgan Chase Bank, N.A. to provide for up to $15 million senior secured mezzanine facility with proceeds to be used for the acquisition of the above mentioned Powder River Basin property.
By Order of the Board of Directors
Storm Cat Energy Corporation
J. Scott Zimmerman
President and Chief Executive Officer
STORM CAT ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months and Six months ended June 30, 2006
and June 30, 2005
(Stated in US Dollars and in thousands, except per share amounts)
Three months ended Six months ended
June 30 June 30
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
OPERATING REVENUES:
Oil and gas revenue $ 1,599 $ 1,172 $ 2,878 $ 1,612
EXPENSES:
Operating Costs
Gathering &
Transportation 280 265 563 270
Operating 774 812 1,350 976
General and
administrative 1,159 977 2,762 1,317
(Gain)/Loss on
disposition of
property - - (185) -
Accretion Expense 37 - 52 -
Depreciation, depletion
& amortization 661 2,277 1,149 2,541
----------- ----------- ----------- -----------
Total Operating
Expense 2,911 4,331 5,691 5,104
----------- ----------- ----------- -----------
Operating Loss (1,312) (3,159) (2,813) (3,492)
Loss on Foreign
Exchange 11 - 11 10
Interest and Other
(Income)/Expense (139) - (334)
----------- ----------- ----------- -----------
NET LOSS (1,184) (3,159) (2,490) (3,502)
=========== =========== =========== ===========
Basic and diluted loss
per share $ (0.018) $ (0.071) $ (0.038) $ (0.085)
----------- ----------- ----------- -----------
Weighted average number
of shares outstanding 66,504,095 44,768,241 66,145,091 41,103,956
=========== =========== =========== ===========
About Storm Cat Energy Corporation
Storm Cat Energy is an independent oil and gas Company focused on the pursuit, exploration and development of large unconventional gas reserves from fractured shales, coal beds and tight sand formations. The Company has producing properties in Wyoming's Powder River Basin, exploration and development acreage in Canada and Alaska. 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 relating to matters such as the Company's drilling and other exploration plans and projected well economics. 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; including production and reserve estimates, and potential benefits to Storm Cat of such acquisitions, 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 receipt of necessary approval from regulatory bodies, the failure to achieve the anticipated benefits of the acquisition, the failure to close the acquisition, 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 20-F for the fiscal year ended December 31, 2005.
NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Contact:
Storm Cat Energy Corporation
J. Scott Zimmerman or Paul Wiesner, 87-STORMCAT
www.stormcatenergy.com
NNYG - Northamerican Energy Group To Acquire Leases
Houston, TX. August 14, 2006 --- Northamerican Energy Group Corporation. (OTC Pink Sheets: NNYG) announced today that it has signed an agreement to acquire the Southeast Montana Muddy Gas Prospect with General American Oil Properties of Golden, Colorado.
These leases are for 100% of the working interest, and 82.5% of the net revenue interest, and are located in Carter County, Montana.
The leases are for seven (7) Federal, and one (1) State, lease on approximately 12,955 acres located northeast and adjacent to the Hammond Field that produced gas from 1977 through 1985 and was still producing gas prior to being shut in.
Northamerican has identified in excess of 96 potential drill sites and each site is to be drilled and operated as shallow natural gas wells into the 1300-1900’ Muddy Sandstone formation.
The Geological Due Diligence Study, performed by an independent reservoir and engineering firm hired by Northamerican, indicate estimated gas reserves per well of 200-250 Million MCF, based on 80 acre developmental spacing.
This acquisition adds reserves estimated at 19 to 23 Billion of gas equivalent based on 96 wells at 135 acre spacing and is valued at $133-170 million based on current natural gas prices.
“We are extremely pleased that we are finally able to conclude the acquisition of this valuable, gas rich, piece of property” stated Jon Ginder, Northamerican Energy Group’s CEO.
In addition Northamerican intends to test drill the deeper (3500’) Minnelusa structure on the northwestern acreage block because seismic interpretation indicates faulting similar to that found in the nearby northeast Powder River Basin that have produced 5-10 MMBO from the Minnelusa.
*These are the same leases announced in August 2005 however in the interim the ownership reverted back to the original leaseholder, General American, who we are now acquiring it from, and WYOPETRO did a thorough engineering and reservoir analysis to enable us to set the values posted.
Baker Hugher: Weekly N.A. rig count down 70 to 2,191
By Ana Campoy
8/4/2006 01:07:08 PM
SAN FRANCISCO (MarketWatch) -- The number of rigs drilling for oil and natural gas in North America fell by 70 to 2,191, according to a weekly update by Baker Hughes Inc. on Friday. The quantity of active oil rigs rose by three to 305, while the number of gas rigs fell by 12 to 1,396. The U.S. rig count dropped by 9 to 1,705, and the number of Canadian rigs fell by 61 to 486. The quantity of offshore rigs rose three to 99.
Natural gas production in the United States will peak later this year or in early 2007, an industry observer says.
Unless energy companies find new gas fields or new drilling techniques to improve extraction, natural gas supplies will peak at more than 52 billion cubic feet per day and then begin to decline, said David Reimers, senior U.S. data specialist with IHS Energy.
And that will push up prices even higher.
"It is a concern," Reimers said Monday at the IHS Energy Regional Roundup in downtown Denver. "We need energy for the industries, for our economic base.
"Gas production will peak and start declining next year, and unless we find new plays, or new technologies, we are going to be in a bind."
IHS Energy bought Cambridge Energy Research Associates - a consulting firm founded by Pulitzer Prize-winning author Daniel Yergin - in 2004. The firm is owned by Arapahoe County-based IHS Inc.
Reimers said the Rocky Mountains, which contain huge natural gas reserves, could be the answer to America's hunger for gas. The gas here is trapped between layers of either shale, tight sands or coal beds, and it requires unconventional drilling techniques to pry it out.
Unconventional gas wells were 14,386, or one-third, of the gas wells completed last year. According to Reimers, the share of unconventional gas - especially from the Rocky Mountains - in the future will account for more than the current 28 percent of total U.S. production.
Unlike other areas in the U.S. where production has declined, the Rocky Mountains have produced a steady supply of gas. But there's a need for more wells to maintain that supply, Reimers said.
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