Galaxy Energy Corporation Signs Project Management Agreement With a Major Oilfield Services Provider for Development Operations on Its Piceance Basin Project
PR Newswire - October 31, 2005 10:06
DENVER, Oct 31, 2005 /PRNewswire-FirstCall via COMTEX/ -- Galaxy Energy Corporation, (OTC Bulletin Board: GAXI) today announced that it has signed a Project Management Agreement with a major oilfield services provider for development operations in Galaxy's Piceance Basin natural gas development project. The Piceance Basin project is the latest addition to the Company's portfolio of unconventional gas projects in the Rocky Mountains, Romania and Germany.
As previously announced, Galaxy, through a wholly owned subsidiary, and Exxel Energy Corp., Galaxy's partner in the project, have accumulated over 5,000 undeveloped acres in the Piceance Basin. Under its agreement with Exxel, Galaxy has undertaken operations for the project's development as contract operator for Exxel.
The agreement makes available to Galaxy the service provider's vast technical and operational experience in the project area and allows Galaxy to leverage its in-house capabilities. The agreement also provides for a favorable pricing structure for goods and services to be provided by the services provider's various integrated companies.
Surveying, permitting, and location preparation for access and drilling are underway for the drilling of Galaxy's first operated well in the Piceance Basin, which will be located in Garfield County, Colorado. Drilling of the well is expected to commence by mid-November 2005 and will be followed by a continuous drilling program in the project area.
Mark E. Bruner, Galaxy's Chairman and CEO, stated, "This new agreement is a significant step forward in the development of Galaxy's Piceance Basin project. It will allow us to launch and maintain an aggressive drilling program in the basin."
Galaxy Energy Corporation is an oil and gas exploration and production company focusing on acquiring and developing coalbed methane and other unconventional natural gas properties in Wyoming, Montana, Colorado and other areas that are prospective for natural gas.
This press release consists of forward-looking statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and actual results could differ materially from those indicated by such forward looking statements. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise. Please refer to the company's filings with the United States Securities and Exchange Commission for discussions of risks and uncertainties found in Forms 10-KSB (annual report), 10-QSB (quarterly report) and other filings.
Additional information may be found at the Galaxy Energy Corporation Web site, www.galaxyenergy.com, or by calling Brad Long, Investor Relations/Galaxy Energy at (800) 574-4294, Bevo Beaven or Bill Conboy at CTA Public Relations at (303) 665-4200, or Tina Cameron, Renmark Financial Communications at (514) 939-3989.
CONTACT:
Brad Long / Investor Relations Bevo Beaven, Vice President/GM
Galaxy Energy Bill Conboy, Vice President
(360) 945-0395 CTA Public Relations, Inc.
(800) 574-4294 (303) 665-4200
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