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Storm Cat Energy Corporation Provides Operational Update; Completes Powder River and Fayetteville Shale Acquisitions
Storm Cat Energy Corporation Provides Operational Update; Completes Powder River and Fayetteville Shale Acquisitions.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, May 16 /CNW/ -- Storm Cat\nEnergy Corp. (Amex: SCU; TSX.V: SME) today provided an update on the Company's\nU.S. and Canadian operations. It also announced the closing of two mineral\nleasehold acquisitions. The highlights of the Company's operations and\ndetails of the transactions are included below.\n\nPowder River Basin\n\n Storm Cat's current production is approximately 4.2 million cubic feet\n per day (MMcfd) from 140 wells on its Powder River Basin properties.\n\n Activity in the Powder continues at a brisk pace. Drilling with three\n rigs will continue and a fourth rig will be added in as needed. The\n Company currently is experiencing an average cycle time from spud to\n first production of 15 days. This is a strong cycle time by industry\n standards.\n\n In early May, Storm Cat closed a mineral leasehold transaction in the\n Powder River Basin, Campbell County, Wyoming, with two private\n companies. The acquisition includes a 90% working interest in\n 3,942 gross / 3,548 net undeveloped acres. As consideration, Storm Cat\n paid 50% in cash at closing and the private companies retain a carried\n interest as to capital costs covering their 10% working interest to be\n paid over a period of 18 months after closing. The acquisition expands\n Storm Cat's core Powder River operating area by providing up to an\n additional 40 gross multi-seam locations prospective for CBM\n development drilling based on 80-acre spacing. The leasehold consists\n of primarily federal lands. Internal, un-audited reserve projections\n for the 40 locations are 4 billion cubic feet.\n\nElk Valley, British Columbia\n\n The Company finished completing the a-84-L and the d-85-L wells drilled\n in December 2005. The a-84-L well, completed in the \"F,\" \"G\" and \"H\"\n coal seams by fracture stimulating down casing, has been on production\n for 60 days. Initial production rates have been as high as 203\n thousand cubic feet per day (Mcfd). The d-85-L well was completed in\n the \"G\" through \"L\" coal seams by fracture stimulating down coil tubing\n in eight separate stages. The well has produced for 42 days at initial\n rates as high as 162 Mcfd. Preliminary results and evaluation by Storm\n Cat engineers are showing better per-well performance than models\n predicted.\n\n Storm Cat re-activated three wells shut...