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Kroes Energy announces aggressive $3.2-million 2005 capital program at Lelyaki Field, Ukraine; Receipt of dividend
Kroes Energy announces aggressive $3.2-million 2005 capital program at Lelyaki Field, Ukraine; Receipt of dividend.
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[{"type":"text","content":"\n\n\n\n\nCALGARY, Tuesday, April 19 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS)\nannounced today that at a recent meeting of the Directors of its 45%-owned\nKashtan Petroleum Ltd. joint venture in Ukraine, an aggressive work program\nwas approved for 2005 at an estimated cost of $3.2 million. The recent success\nof well No. 305 in establishing \"attic\" oil reserves in the K1 zone has\nprompted the planning of four follow up wells, of which two are expected to be\ncompleted in 2005 and two will be drilling at year end. In addition to the\ndrilling program, new flow lines, measuring devices and other field\nimprovements will be completed.\nFred Callaway, President of Kroes, said: \"the $3.2 million program is\nquite ambitious, and it will be entirely funded from cash flow from the\nKashtan joint venture.\"\nThe rig from the No. 305 wellsite is now being moved some 60 metres and\nwill be rigged up to begin drilling well No. 301. This new well will be\ndeviated to a bottom hole location 400 metres to the north where both the \nP1-P2 and the deeper K1 zones will be penetrated. Kashtan is studying the\npossibility of then kicking off from the No. 301 wellbore and drilling a \n250-metre horizontal leg into the main P1-P2 producing sands. Should this be\nsuccessful, the well would have production from the K1 zone as well as\nsignificantly enhanced production from the P1-P2.\nFollowing the rig move, No. 305 will be serviced by a workover rig and\nplaced on production at an expected initial rate of 190 barrels per day. After\nstabilization of production from the K1 zone, it is expected that the P1-P2\nzone will be perforated, tested and put on production.\nThe No. 302 well encountered four metres of lower quality pay in the \nP1-P2 zone, but is presently being completed and is expected to produce about\n20 barrels per day.\nKashtan Petroleum Ltd. declared a dividend to the joint venture partners\nand Kroes' 45% share is $175,000. After deducting the 5% withholding tax in\nUkraine, Kroes will receive $166,000 for transfer to its Calgary account.\n\nKroes Energy is a junior oil and gas producer and explorer participating\nin the Lelyaki Oilfield redevelopment project in Ukraine, one of Eastern\nEurope's fastest growing economies. Kroes has a strong management team, with\nextensive international experience. Shares trade on the TSX Venture...