Additionally, the Company recently completed the SRA3 #1 gas well. The well was drilled horizontally to a measured depth of 11,704 feet and tested a new structure in the upper Black River formation. The well flowed on test at a rate of 19 mmcf/d at a wellhead pressure in excess of 2000 psi.
"These are prolific wells and their location close to major US markets means that they are particularly valuable," said Dr. Jim Buckee, President and Chief Executive Officer of Talisman Energy. "Production in the area has increased from 60 to over 100 mmcf/d in recent months. The northeastern US now accounts for over 12% of Talisman's consolidated North American natural gas production and significantly, generates about 18% of the operating cash flow from North American gas operations. Fortuna is continuing to build its land base in the area and is putting together plans for 2005."
A new pipeline is currently under construction for the SRA3 #1 well and the suspended Grand Prix well (initial expected production of 4 mmcf/d). The pipeline should be on stream in the third quarter of 2004. Additional structures are currently being drilled in the same general area as these wells.
Fortuna Energy Inc. has an active exploration and development program underway and expects to drill a total of 11 horizontal Black River wells in 2004. Year to date, six operated wells have been drilled and two are currently drilling. Capital spending is expected to exceed US$60 million in 2004. Further information will be released as these wells are completed and tested. All production numbers represent Fortuna Energy Inc. working interest before royalty.
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