Business
Storm Cat Energy Corporation Provides First Quarter 2006 Operational Update
Storm Cat Energy Corporation Provides First Quarter 2006 Operational Update.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, April 4 /CNW/ -- Storm Cat\nEnergy Corp. (Amex: SCU; Toronto: SME) today provided an update on the\nCompany's U.S. and Canadian operations. The highlights of the Company's\noperations are included below.\n\nPowder River Basin\n The Company is continuing to produce approximately 4.0 million cubic\n feet per day (MMcfd) from 142 wells on its Powder River Basin\n properties.\n\n The Company has received final approvals on its 68-well Plan of\n Development from the Bureau of Land Management (BLM). Drilling with\n three to four rigs is expected to commence by the end of April.\n\n Storm Cat entered into a Letter Agreement to purchase approximately\n 3,550 net acres of federal and fee leases in the Powder River Basin,\n Campbell County, Wyoming. The Company is in the final process of title\n due diligence with closing expected by late April. The acquisition\n should yield up to 40 additional drillable locations once permitted.\n\nElk Valley, British Columbia\n The Company finished completing two wells drilled in December 2005.\n The A84L well, completed in the F, G and H coal seams by fracture\n stimulating down casing, has been on production for 16 days.\n Production rates have grown from an initial rate of 124 thousand cubic\n feet per day (Mcfd) to as high as 204 Mcfd. The D85L well was\n completed in the G through L coal seams by fracture stimulating down\n coil tubing in eight separate stages. The well produced for five days\n at 75 Mcfd until experiencing downhole pump failure. Initial results\n and evaluation by Storm Cat engineers are showing better per-well\n performance than models predicted.\n\n Storm Cat re-activated three wells shut-in by the previous operator.\n The three wells are producing a combined 150 Mcfd. Company engineers\n are again encouraged by initial results from the wells which are\n performing as expected at this stage of production.\n\n Based on the results to date, six wells are being licensed to target\n both the upper and lower Mist Mountain coal sections with expected\n initial spud dates of early June. An additional six drilling locations\n are currently being considered for drilling in the late fall. In\n addition, engineering services to aid in the design of compression and\n related facilities are being evaluated.\n\nJ. Scott Zimmerman, President and Chief Ex...