Business
Storm Cat Energy Corporation Provides Operations Update; Announces Third Quarter 2007 Results
-- Total Current Production at 12.2 Million Cubic Feet Per Day Net -- Three Fayetteville Shale We...
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n-- Total Current Production at 12.2 Million Cubic Feet Per Day Net\n\n-- Three Fayetteville Shale Wells Drilled; Two Completed\n\n-- Pipeline Agreement in Place for Fayetteville Acreage\n\n\nDENVER and CALGARY, Alberta, Nov. 8 /CNW/ -- Storm Cat Energy Corporation\n(Amex: SCU; TSX: SME) today provided an operations update and announced third\nquarter 2007 financial and operating results.\n\n\nDuring the quarter the Company drilled 28 wells bringing the total number\nof wells drilled during the first nine months of 2007 to 67. Current net\nproduction is 12.2 million cubic feet per day (MMcf/d) from producing\nproperties in Wyoming's Powder River Basin (PRB) and from the Arkoma Basin in\nArkansas (Fayetteville Shale). Total net sales increased 8.5% quarter-to-\nquarter to 808.2 million cubic feet (MMcf) during the third quarter 2007 from\n745.0 MMcf in the second quarter 2007. PRB production growth in the third\nquarter was adversely impacted by force majeure production curtailments and\nabnormally low Rockies gas prices. Year-over-year production increased 117.6%\nto 808.2 MMcf in the third quarter 2007 from 371.5 MMcf in the second quarter\n2006.\n\n\nOperations Update (all figures in U.S. Dollars)\n\n\nDuring the third quarter, Storm Cat built upon its first half production\ngrowth, but was impacted negatively by production curtailment on a portion of\nits PRB gas production due to force majeure events on important Rocky Mountain\npipeline infrastructure and abnormally low Rockies gas prices. The force\nmajeure events related to a September 16, 2007 fire on the Cheyenne Plains gas\npipeline which reduced Rockies take-away capacity, further deteriorating\nRockies gas prices. In light of these events, the Company partially curtailed\nits production and activity in the PRB. The pipeline operator returned the\npipeline to full capacity on November 7, 2007.\n\n\nCurtailed production from the PRB at September 30, 2007 was 14.7 MMcf/d\ngross and 7.7 MMcf/d net. Coming out of curtailment, production currently is\n21.5 MMcf/d gross and 11.9 MMcf/d net. Because of the price environment and\ncurtailment, Storm Cat made the decision to delay additional well completions\nand pipeline hookups during the third quarter. Barring those elections, the\nCompany estimates that production from the PRB would currently be 23.7 MMcf/d\ngross an...