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Storm Cat Energy Provides an Interim Fourth Quarter Operational Update; Company's Reserves, Valuation and Cash Flow on the Rise as Powder River Basin Acreage Is Successfully Drilled
Storm Cat Energy Provides an Interim Fourth Quarter Operational Update; Company's Reserves, Valuation and Cash Flow on the Rise as Powder River Basin Acreage Is Successfully Drilled.
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Alberta and DENVER, Nov. 30 /CNW/ -- Storm Cat\nEnergy Corporation (Amex: SCU; TSX.V: SME) provides a year-to-date update on\nthe Company's operations. Highlights include:\n\n A production increase of 33% from 121 Storm Cat operated wells;\n As of September 30, 2005, total proved net reserves on the Company's\n Powder River Basin acreage are estimated at 9.932 bcf (billion cubic\n feet), an increase of 5% from the year-end 2005 estimate;\n Storm Cat initiated its drilling program on July 19, 2005 and has now\n drilled 26 wells of a 120 well program;\n Re-activated three wells on the Elk Valley acreage in British Columbia,\n and drilled two new wells north of the pilot project which encountered\n thick, gas-charged coal seams;\n Secured a drilling rig for the Alaska project;\n Commencing a three well drilling program at Moose Mountain,\n Saskatchewan.\n\nPowder River Basin, Wyoming\nCurrent Powder River daily production remains at approximately 4 MMCFD\n(million cubic feet per day) of natural gas from its coalbed methane (CBM)\nplay located in Campbell County, Wyoming. This marks a 33% increase since\ntaking over the properties in March 2005. To date, 26 wells have been\ndrilled, including 17 multi-seam completion wells in a combination of the\nCook, Wall and Pawnee coal seams. The remaining nine wells are completed in\nonly the shallower Canyon coal seam, but drilled on 160-acre pattern versus\nthe normally accepted 80-acre pattern. The 26 wells drilled to date are in\nvarious stages of dewatering and are currently producing approximately\n400 MCFD (thousand cubic feet per day) which is consistent with Storm Cat's\ninternal production model. Multi-seam completion techniques help economically\ncapture incremental reserves in a single wellbore, significantly reducing\nfinding and development (F&D) costs. Well analysis on the experimental Canyon\n160-acre pattern is also showing improved recoveries by capturing hydrocarbons\nwith fewer wells.\nStorm Cat currently has three drilling rigs working in the Powder River\nBasin. The rigs will continue to exploit the Powder CBM leaseholds where the\nCompany is currently drilling on its first 37-well Federal Plan of\nDevelopment. A second Federal Plan of Development, which totals 68 wells, has\nbeen filed and is in the final process of approval which should secure amp...