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Storm Cat Energy Corporation Provides Operations Update; Announces First Quarter 2007 Results
Storm Cat Energy Corporation Provides Operations Update; Announces First Quarter 2007 Results.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n* Current Production at 9.6 Million Cubic Feet Per Day Net\n\n* Four Rigs running in the Powder River Basin\n\n* Fayetteville Drilling Operations to Commence Within 75 Days\n\n* Maintaining Strong De-Water Rates In Elk Valley\n\n\nDENVER and CALGARY, Alberta, May 10 /CNW/ -- Storm Cat Energy Corporation\n(Amex: SCU; TSX: SME) today provided an operations update and announced first\nquarter 2007 financial results.\n\n\nOperations Update (all figures in U.S. Dollars)\n\n\nCurrent net production in the Powder River Basin (PRB) is 9.6 million\ncubic feet per day (MMcf/d) an increase of 20% from 8.0 MMcf/d at year end\n2006. The Company drilled and completed 20 wells in the PRB during the first\nquarter of 2007. Storm Cat currently has an average of four rigs running in\nthe PRB and expects to drill approximately 130 additional wells during the\nremainder of 2007. The total capital budget for the PRB for 2007 is $20.0\nmillion.\n\n\nWith respect to the Company's Fayetteville Shale acreage, located in the\nArkoma Basin in Arkansas, preparations are underway to begin drilling the\nfirst of Storm Cat's operated wells within the next 75 days. The Company has\nstaked its initial well locations and is completing final negotiations with\ndrilling and pipeline contractors. During the first quarter 2007, the Company\nadded approximately 2,320 gross and net acres in the Fayetteville Shale which\nare contiguous and interspersed among the Company's current acreage. This\nbrings Storm Cat's current acreage position to 21,200 gross acres and 16,670\nnet acres. The Company expects to spend approximately $10.0 million in the\nFayetteville Shale during 2007 to drill and complete four to six Company\nwells.\n\n\nIn Elk Valley the Company currently has 10 wells on production and\nde-watering. Wells completed in 2006 are maintaining strong and sustained\nwater rates and have begun to see increases in associated gas rates. The\nearly performance of these wells has exhibited higher production rates than\nprevious well completions performed to date. The Company expects to be in a\nposition to report determinative results from these wells in the fourth\nquarter of 2007.\n\n\nThe Company drilled one Horseshoe Canyon / Belly River sand well during\nthe first quarter of 2007 in Alberta. Completion and production test results\nfrom this well are pending...