"The key to this transaction is the highly prospective land position, which almost doubles Fortuna's existing net acreage," said Dr. Jim Buckee, President and Chief Executive Officer of Talisman Energy Inc. "Fortuna has currently identified over 25 drilling locations and this number is expected to increase with further technical review. These will augment the 40 current drilling locations on existing Fortuna acreage.
"With the added production, Fortuna will be producing 110-120 mmcf/d and there are now four additional wells awaiting tie in. The latest Fortuna well at Moss was also very successful, testing at 15 mmcf/d."
The main assets being acquired consist of lands adjacent to Fortuna's holdings in New York, as well as interests in Pennsylvania, Ohio and West Virginia. In total, Fortuna will acquire approximately 475,000 gross acres of Trenton/Black River rights throughout the Appalachia region, with an average working interest of 78%. Fortuna currently has 433,000 acres in Appalachia (approximately 100% working interest).
Fortuna will also acquire 4-5 mmcf/d of production (net before royalty), which is expected to increase to 8-10 mmcf/d by September 30, 2004. Production is currently limited to three wells in New York, however three additional wells are awaiting completion, one well is nearing total depth and one well is about to spud.
Fortuna Energy Inc. has an active exploration and development program underway and including this acquisition expects to drill a total of 21 wells in 2004. Year to date, nine operated wells have been drilled and two wells are currently drilling. Capital spending is expected to exceed US$60 million in 2004.
Most Popular Articles