Business
Storm Cat Energy Corporation Provides Corporate Update
- VAUGHN 1-18H PRODUCING IN EXCESS OF 1.0 MMCF/D - FILES 1-12H PRODUCING IN EXCESS OF 1.2 MMCF/D ...
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n- VAUGHN 1-18H PRODUCING IN EXCESS OF 1.0 MMCF/D\n\n- FILES 1-12H PRODUCING IN EXCESS OF 1.2 MMCF/D\n\n- AMENDMENT TO CREDIT FACILITY\n\n\nDENVER and CALGARY, Alberta, April 21 /CNW/ -- Storm Cat Energy\nCorporation (Amex: SCU; TSX: SME) today provided a corporate update of its\noperations in the Company's Arkansas Fayetteville Shale acreage and its recent\ncredit facility amendment related to its previously announced Powder River\nBasin (PRB) acquisition.\n\n\nFayetteville Shale\n\n\nAs reported last week, the Vaughn 1-18H well was placed on production on\nApril 12 and was initially producing at 0.4 - 0.7 million cubic feet per day\n(MMcf/d) while undergoing cleanup. The well continues to clean up and is\ncurrently producing in excess of 1.0 MMcf/d. The Company's third well, the\nFiles 1-12H, was tied into sales on April 17, 2008 and is producing in excess\nof 1.2 MMcf/d while undergoing cleanup.\n\n\nThe first of the horizontal wells of the 2008 program, the Ballard 1-18H,\nhas reached TD and casing has been run and cemented. The horizontal lateral\nlength of the Ballard 1-18H is approximately 4,600', which is double the\nlateral length of the initial three wells that are currently producing in the\nFayetteville. Completion of the Ballard 1-18H should commence within the next\n30 days.\n\n\nAmendment to Credit Facility\n\n\nThe Company funded the previously announced PRB acreage acquisition\nthrough an amendment to the Company's existing senior, secured credit facility\nwith Regiment Capital Advisors, LP and Wells Fargo Foothill, part of Wells\nFargo & Company. The amendment increased the term facility from $30.0 million\nto $40.0 million. In addition, the Company and the lenders amended the credit\nfacility to reset loan compliance covenants to reflect the production\nshortfall in the first quarter of 2008.\n\n\nAbout Storm Cat Energy\n\n\nStorm Cat Energy is an independent oil and gas company focused on the\nexploration, production and development of large unconventional gas reserves\nfrom fractured shales, coal beds and tight sand formations and, secondarily,\nfrom conventional formations. The Company has producing properties in\nWyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration and\ndevelopment acreage in Canada. The Company's shares trade on the American\nStock Exchange under the symbol &...