Pinnacle Group Unlimited PGPU is pleased to announce the drilling and completion of its first four wells in West Virginia in 2006.
The first two wells, the Digman #1 and Digman #2, have been drilled and completed to the Big Injun and Gordon formations. The initial tests show that each well will deliver approximately 100,000 cubic feet of gas per day in the line. The expected ultimate recoverable reserves for each of these two wells are approximately 250 million cubic feet of gas.
Based upon the standard market price of natural gas which is currently at $7.00 per thousand cubic feet of gas, the Gross Income from production for the next twelve months will exceed $250,000 per well. These wells should be selling gas by the end of April.
The second two wells, the Hutson #1 and Hutson #2, have been drilled and completed to the Gordon Formation. The initial tests indicate that each well will deliver approximately 60,000 cubic feet of gas per day into the line. The expected ultimate recoverable reserves for each of these two wells are 185 million cubic feet of gas.
Based upon the standard market price of natural gas quoted above, the Gross Income from production for the next twelve months will exceed $150,000 per well. Both wells should be selling gas by the middle of April.
PGPU (Maverick) will retain a 25% working interest in all of the above wells.
As previously stated, PGPU projects to drill an additional 25 wells in West Virginia this year.
James McCabe, CEO, stated, "We are very excited with the potential production of these first four wells. And based upon those results, PGPU continues to acquire additional leases in West Virginia."
This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; the uncertainty of the oil & gas market; including the geopolitical environment not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information, please contact: Ronald Kopman President of Pinnacle (416)371-1357 Ronkopman7@sympatico.ca
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