DVPC ($.13) is the next NDOL. 36 MM shares OS, $.13 100 MM BBL possible reserves
DVPC has 11 producing coalbed methane wells, 32000 acres of U.S. federal leases and the kicker, a 50% interest in Egypt lease with 12 more targets, with each target having the potential to hold hold 50-100 million barrels of recoverable oil.
Dover Petroleum Corp (OTC: DVPC) today announced an increase in gross production from eight of its eleven coalbed methane wells in the Slater Dome field (the "Slater Dome Prospect") from an initial average daily rate of 254 MCF ("thousand cubic feet") per day in June 2005 (pipeline connection date) to 542 MCF per day in January 2006. Overall, Slaterdome's ownership amounts to a networking and operating rights interest of approximately 33.3% in the Slater Dome Area. The Company has received between $5.17 and $13.07 per MCF for its production from the Slater Dome Prospect. The company reported that the gross production has increased from 4,007 MCF (approximately 1,335 MCF to our interest) in June 2005, our first month of production, to 11,629 MCF (approximately 3,875 MCF to our interest) in January 2006 an increase of 190%.
We anticipate further increases to production as our wells dewater and as the producing wells are electrified. Currently, we are using some of our gas produced (approximately 175 MCF per day) to run the production equipment, which decreases the amount of gas available for sale. We anticipate that the current wells in the southern area of the prospect will have electricity by the end of February 2006, which will release more gas for revenue sales. We have one well in the northern area of the prospect that is awaiting a pipeline connection and one well in the southern area awaiting a completion rig.
The Slater Dome Prospect is located geographically in the southern end of the "Atlantic Rim" geologic feature where there are a number of successful coalbed methane projects currently being operated by Double Eagle Petroleum Co, Anadarko Petroleum Corp., Warren Petroleum, Kodiak Oil and Gas Corp, New Frontier Energy and others.
Dover's wholly owned subsidiary, Slaterdome, Inc., and Slaterdome's partners, Cedar Ridge, LLC and New Frontier Energy, Inc., together own the working and operating rights interest in certain oil and gas leases covering approximately 34,398 gross acres in northwest Colorado and southwest Wyoming (the "Slater Dome Area"). Our acreage increased from 32,631 through purchase of additional land at 2 Federal Land Sales. The Company and its exploration partners currently have nine gas wells and one water transfer well at the Slater Dome Prospect. All of the wells have provided indications of the presence of natural gas. As we dewater the coals, we will be able to assess the productivity and economics of each well.
Properties
Gulf of Suez, Egypt:
DP is the operator with a 50% joint-venture interest in the 100,000-acre East Wadi Araba oil concession.
The property was relinquished by British Gas in 1998, when oil prices were in the $10 per barrel range. In 1991, British Gas drilled 1 target that produced 20,000 barrels per day of production and recovered 50 million barrels of oil from the field. It is still in production with 52 million barrels of recoverable reserves, adjacent to DP`s project to the northeast.
The Seismic data generated by British Gas identifies 12 more targets, with each target having the potential to hold 50-100 million barrels of recoverable oil.
