Powder River Assesses Hurricane Damage, Only Minimal Disruptions Reported
Tuesday October 4, 7:00 am ET
CALGARY, Alberta--(BUSINESS WIRE)--Oct. 4, 2005--Powder River Basin Gas Corp. (OTCBB:PRVB - News) a revenue generating producer and acquirer of crude oil and natural gas, today announced it has completed its assessment of the damage caused by Hurricanes Katrina and Rita. PRVB is pleased to report that no serious damage was sustained on any property, and that all oil and gas reserves, equipment, and inventory remain intact.
Hurricane Katrina caused no damage directly to Powder River Basin Gas Corp. properties.
The oil and gas pipelines which transport gas from the Arcadia Parish project were damaged, and remain out of service as gas facilities are being re-built. The gas is shut off at the wellhead until the facility is back in operation.
Hurricane Rita caused more direct disruption to operations, as electricity remains off since the storm. The electric company is working to have services restored as quickly as possible. Due to the excessive rainfall, this repair work has been delayed while water recedes.
The Arcadia Parish project will resume oil production as soon as electricity is restored. Oil will be stored on site until transports resume.
The Springhill project sustained some damage, but this was confined to the surface only. Trees were blown over roads and some electric poles were knocked down, as well as minimal flooding to the project. Electric service has been restored and wells are being quickly put back into production.
The Kirby, Texas well received no direct damage, but has been shut down while access roads are being cleared of downed trees and the water evaporates. There is also a shortage of propane, which is required to start the gas motors. This will delay production and sales, but only on a short-term basis.
Parts of Oklahoma received heavy rainfall, however there was no serious damage to any of the properties or equipment.
There remains a "waiting list" on materials as most of the suppliers in Louisiana have been temporarily shut down until services are restored.
"Both Katrina and Rita have caused delays in the Company's development program, and will affect oil and gas revenue for the third quarter. However, we are pleased to report no product or equipment was lost, and we expect to be back on schedule during the fourth quarter of 2005," stated Powder River Basin Gas Corp. CEO Brian Fox. He went on to say, "At this time, I would like to express our deepest sympathies to the Gulf Coast victims of both hurricanes. As a company, and as individuals, we all have and will continue to support the relief efforts. I would also like to thank everyone who contacted us to express their concerns for our employees located in this region. I am relieved to announce that all Powder River Basin Gas Corp. employees are fine, and we greatly appreciate the support shown."
Powder River Basin Gas Corp. is active in production and acquisition of crude oil and natural gas.
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.
Powder River Basin Gas Corp. (OTC Bulletin Board:PRVB - News)
Contact:
Powder River Basin Gas Corp.
Stephanie Edgemon
Investor Relations
(602) 466-2422
powderriverir@aol.com
www.powderrivergascorp.com
