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Storm Cat Energy Corporation Provides Operational Update; Company Sets Initial 2006 Capital Program at US$32 Million
Storm Cat Energy Corporation Provides Operational Update; Company Sets Initial 2006 Capital Program at US$32 Million.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, Jan. 26 /CNW/ --\nStorm Cat Energy Corp. (Amex: SCU; TSX.V: SME) today provided an update on the\nCompany's U.S. and Canadian operations. The highlights of the Company's\noperations are:\n\n Storm Cat's Board of Directors has approved an initial CAPEX budget of\n approximately US$32 million for drilling, leasehold and geologic work in\n 2006. In 2005, the Company spent approximately US$20 million.\n The Company is producing 4.0 million cubic feet per day (MMcfd) from\n 138 wells on its Powder River Basin properties.\n Storm Cat entered into a letter of intent to purchase approximately\n 3,550 net acres in the Powder River and 4,308 net acres in Alberta.\n Both areas are prospective for coalbed methane (CBM) drilling and\n production.\n In British Columbia, the Company is rapidly moving forward with drilling\n to determine commerciality on the Elk Valley farm-in. Storm Cat has\n re-activated three wells, drilled two wells on the northern portion of\n the pilot and permitted to drill six wells for the next phase of\n development.\n In Alaska, a rig is secured with drilling to commence in February 2006.\n Storm Cat will drill the Northern Dancer #1, its first onshore Cook\n Inlet Basin well.\n Permits have been submitted to drill three wells on Storm Cat's Moose\n Mountain acreage in Saskatchewan. Although a drilling rig has not yet\n been secured, the Company is confident it will secure a rig in the near\n future.\n On January 25, 2006, the SEC declared effective the Company's\n registration statement filed on Form F-3 pursuant to the registration\n rights agreement dated October 20, 2005.\n\nThe Company's operational update:\n\nPowder River Basin - Wyoming\nStorm Cat Energy is developing coalbed natural gas on over 7,800 gross\nacres in the Jamison/North Twenty Mile and Northeast Spotted Horse areas,\nlocated in Campbell County, Wyoming, USA. Geologically, these fields are\nlocated on the northeastern flank of the Powder River Basin coalbed natural\ngas region.\nOriginally placed in production in early 2002 and acquired by Storm Cat in\n2004, the Jamison/North Twenty Mile properties are currently producing at a\nrate of approximately 750 thousand cubic feet per day (Mcfd) of natural gas\nfrom 28 producing wells (26 operated). Current production derives from the\nAnderson and Canyon coal seam...