CALGARY, July 12 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced
today that the first prospect in its central Alberta joint venture has
resulted in a shallow gas completion.
A shut-in well was re-entered and fractured in two zones. On short tests
after clean-up, the well produced 600 mcf/day from the two zones. A 100-metre
tie-in to the existing area's gathering system is under construction. Kroes
has a 25% working interest in this prospect and its net share of production at
these rates is 150 mcf/day or 25 barrels of oil equivalent per day.
Kroes also participated in the drilling of a second well in the same
region, where it has a 12.5% working interest. The technical data from this
well is now being evaluated to determine whether it is capable of production.
By participating in this well, Kroes earned the right to participate in a
prospect on an adjoining section that it is now evaluating.
Kroes has also paid certain seismic fees to participate in a well with a
25% working interest. Drilling is expected to take place in September.
Fred Callaway, President of Kroes, said "We are pleased that this program
is now underway with encouraging initial results. We expect to participate in
a number of similar prospects over the remainder of 2006 and we look forward
to announcing those results as they become available."
Kroes Energy is a junior oil and gas producer and explorer participating
in the Lelyaki Oilfield redevelopment project in Ukraine, one of Eastern
Europe's fastest growing economies. It also has a Joint Venture agreement in
central Alberta. Kroes has a strong management team, with extensive
international experience. Shares trade on the TSX Venture Exchange under the
symbol KRS.
FORWARD-LOOKING STATEMENTS
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This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Kroes' control, including: the impact of general economic conditions in
the areas in which the Company operates, industry conditions, changes in laws
and regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or management,
fluctuations in commodity prices, foreign exchange or interest rates, stock
market volatility and obtaining required approvals of regulatory authorities.
In addition, there are risks and uncertainties associated with oil and gas
operations; therefore, Kroes' actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking estimates and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking estimates will transpire
or occur, or if any of them do so, what benefits, including the amounts of
proceeds, that Kroes will derive from that.
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