Business
Storm Cat Energy Corporation Provides 2007 Capital Budget Guidance
Storm Cat Energy Corporation Provides 2007 Capital Budget Guidance.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\nDENVER and CALGARY, Alberta, April 19 /CNW/ -- Storm Cat Energy\nCorporation (Amex: SCU; TSX: SME) today announced that its Board of Directors\nhas approved an initial 2007 capital budget totalling US$40.0 million.\n\n\nThe 2007 capital budget includes US$20.0 million for drilling of\napproximately 150 wells in the Powder River Basin; US$10.0 million to initiate\nStorm Cat operated development wells in the Fayetteville Shale; US$4.0 million\nin Elk Valley to maintain de-watering operations and operate existing\nproduction; and US$6.0 million in Alberta for drilling and completion\nactivities. The US$40.0 million capital budget will be funded through cash\nflow from operations and cash on hand augmented in part by the existing\nUS$35.0 million reserve-based revolving line of credit with JP Morgan, of\nwhich US$10.0 million was drawn at March 31, 2007, and the Company's recent\nUS$50 million subordinated debt financing.\n\n\nThe 2007 capital budget may be revised based on drilling rig and oilfield\nservice availability, drilling results, operational developments,\nunanticipated transaction opportunities, market conditions and commodity price\nfluctuations.\n\n\nActing Storm Cat President and CEO, Keith J. Knapstad, said: "For a\ncompany of our size, we are fortunate to possess a high quality, complementary\nasset portfolio. I expect 2007 to be a year of transformation and continued\ngrowth for Storm Cat as we advance our core operating areas. We intend to\nincrease our asset value in the Powder River Basin through continued\naggressive development activities. Additionally, we are eager to shift our\nFayetteville shale assets from an acreage play to an active production play.\nWe will build meaningful net asset value in the Fayetteville through drill-bit\nsuccess in 2007. We were able to put together an attractive position in the\nFayetteville in advance of industry interest and are pleased with the\nimproving economics and expanding production extent of this prolific play.\nFurther, we will maintain our diligent work in Elk Valley by continuing our\ndewatering efforts so we can best determine the economic viability of this\nproject. Storm Cat's 2007 goals are achievable and, equally important, are\nfully funded due to recent successful financing activities."\n\n\nAbout Storm Cat Energy\n\n\nStorm Cat Energy is an...