Business
Storm Cat Energy Announces Second Quarter 2006 Operational Highlights
Storm Cat Energy Announces Second Quarter 2006 Operational Highlights.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nDENVER, July 27 /CNW/ - Storm Cat Energy Corporation (AMEX:SCU, TSX:SME)\ntoday announced operational highlights and acquisition activity for the second\nquarter 2006.\n\nProduction and Sales Operating Highlights:\n\n-- Average gross daily production was 3,850 thousand cubic feet per day\n(Mcfd) (2,670 net) as compared to 3,800 Mcfd (2,547 net) for the first quarter\nof 2006.\n\n-- Gross average monthly operated production increased 3% to 104,307 Mcf\nfrom 101,602 Mcf in the first quarter 2006.\n\n-- Net Average monthly operated sales were 77,457 Mcf for the three\nmonths ended in June 2006 as compared to 73,789 Mcf for the first three months\nof 2006.\n\nSummary Operating Highlights by Principal Fields/Areas:\n\nPowder River Basin\n\nThe Company continues to be active in the Powder River with 35 wells\nspudded (23 multi-seam) during the second quarter. For the full year, the\nCompany plans a total of 73 wells in the Powder River. Storm Cat currently has\n3 to 4 rigs operating.\nOn July 19, 2006 the Company had 158 (154 operated and 4 non-operated)\nproducing wells in Campbell County, Wyoming. Accordingly, production for the\nPowder River is averaging 5,000 Mcfd gross (3,640 net), up from 3,800 Mcfd\ngross (2,547 net) in first quarter 2006. Twenty-six additional new wells are\npending final completion/first production and 3 additional operated wells are\nshut-in and awaiting potential remediation.\n\nElk Valley Operations\n\nAt the end of the second quarter, the Company had 5 wells on production\nwith total current gas production of approximately 250 Mcfd gross and net\nwhich is currently being vented. Current plans are to begin drilling the 2006\nPhase-1 program, (which consists of up to six wells) at the end of July or\nbeginning of August. Storm Cat has already secured a rig and is building\nlocations. While preliminary test results are encouraging enough to drill the\nadditional 4-6 wells, Storm Cat has not yet established economic reserves of\ngas in Elk Valley.\n\nOther Properties\n\nThree well locations were successfully drilled and cased year to date in\nMoose Mountain, Saskatchewan. Extremely wet weather has prevented completion\nwork, but the expectation is to begin completion operations within the next\nthree weeks. In Alaska the Northern Dancer #1 well was spudded in February and\nreached a depth of 6,243 i...