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Kroes Energy announces new production and first quarter results
Kroes Energy announces new production and first quarter results.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, May 30 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced\ntoday that net earnings for the first quarter of 2006 amounted to $116,574\ncompared to $102,681 in the same period in 2005. Cash from operations totaled\n$276,209, an increase of 84% from the prior year period. These improvements\nwere the result of higher prices and modestly higher production and were\nachieved despite the imposition of a new 41% royalty by the Ukrainian\ngovernment.\nCrude oil production averaged 237 barrels per day compared to 209 barrels\nper day for the first quarter of 2005. New production from three wells put on\nsteam during 2005 was partly offset by the shut-in of two other wells for\nmechanical repairs.\nIn Ukraine, a meeting of the Kashtan joint venture was recently held and\na work program for the drilling of two more wells and production facilities\nwas proposed, along with the declaration of a dividend that would net Kroes\nsome $175,000. These issues are subject to the final approval of the\nparticipants in the next few weeks. The well No. 303 was completed in May and\nthe initial production rate from the K1 zone was 100 barrels per day (45 b/d\nnet to Kroes). The main P1/P2 zone also is oil bearing and will be available\nfor production in the future.\nIn western Canada, the Company's first shallow gas prospect has been\nsuccessfully re-completed in the Viking zone and is awaiting a service rig to\nre-complete the Glauconitic zone then put the well on production. The Company\nhas agreed to participate in two additional prospects and is presently\nevaluating another two prospects.\nThe $2 million financing by way of Short Form Offering Document that was\nannounced early in May is proceeding with the agent, Octagon Capital\nCorporation. The offering is expected to close in June 2006.\nKroes Energy's first quarter report dated March 31, 2005 has been filed\non SEDAR (www.sedar.com). It is also available on the Company's website at\nwww.kroesenergy.com.\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. It also has a Joint Venture agreement in\ncentral Alberta. Kroes has a strong management team, with extensive\ninternational experience. Shares trade on the TSX Venture Exchange under th...