Digital Gas, Inc.(fka DIGGQ)

[Buckey]

2004-12-16 19:07 ET - News Release



NEW YORK -- (Business Wire) -- Dec. 16, 2004

Please replace the release with the following corrected
version due to multiple revisions.

¶ The corrected release reads:

¶ DIGITAL GAS SUBSIDIARY AGREES TO ACQUIRE UP TO 27,000 ACRES OF
PRODUCING & HIGHLY PROSPECTIVE GAS LEASES IN WYOMING FOR $9.5 MILLION

¶ A subsidiary of Digital Gas, Inc. (OTC Pink Sheets:DIGG) - agreed
to purchase 27,000 acres of producing and highly prospective gas
leases in Wyoming for $9.5 million. The company is currently
negotiating additional acquisitions in the area and no details on
locations or sellers will be made available at this time.
¶ The current agreement covering 27,000 acres includes 1.5 MMCF per
day of gas production, 23 wells drilled and ready for production and
the possibility of drilling 338 wells to the 1,500 foot level and 169
wells to the 5,000 foot level.
¶ The 23 wells that can produce in the short term are shallow wells
which are anticipated to produce 125 MCF per day each. If the wells
produce as anticipated, the total gas produced on the 27,000 acres
prior to new drilling would be a total of 4.37 MMCF per day.
¶ Each well drilled to the 1,500 foot level is anticipated to
minimally produce 375 MCF per day and those down to the 5,000 foot
level a minimum of 1.5 MMCF per day each. The cost to drill and
complete in Wyoming will be higher then in Kansas because there are
many more coal bearing zones with greater net thickness that are able
to produce. Although the drilling costs will be higher, the amount of
gas produced more then compensates for the added expense. All wells to
be drilled are in close proximity to major national gas pipelines and
are considered to be extremely low risk wells.
¶ There is an estimated $13.5 Billion of gas reserves on the
property based on commonly accepted engineering and geological
reports.
¶ Based on the higher reserves in Wyoming, the subsidiary will seek
in excess of $50 million to purchase the deal and for an aggressive
drilling and completion program. The subsidiary will begin closing its
CBM gas acquisitions this month and anticipates concluding all current
and pending deals, including its Wyoming deals, by January 31, 2005.
¶ Digital Gas also reports that its Green Harbour Energy & Farming
subsidiary is close to concluding one or more multi-million ton stone
purchase orders. In addition, the company is evaluating offers from
US-based broker dealers and investment banks to take Green Harbour
public on a senior exchange with a commitment to provide interim
funding in the near-term. Further details will be made available after
pending contracts are signed.
Contacts:

Digital Gas, Inc.
Brian Smith, 732-927-4073
[e-mail]
Source: Digital Gas, Inc.