In addition to the wells currently drilling, it is expected that the Company will drill another two to four wells prior to year end, for a total program of 15 to 17 wells in Canada during 2004. All the prospects are focused towards natural gas. Successful wells could be on production quickly as these prospects are near existing infrastructure and can be accessed year round. To date, the Company has acquired mineral rights on 8,000 net acres in 2004. The Company plans to acquire additional mineral rights and is negotiating several farm-in proposals. The majority of the land is located in Central Alberta, on three main prospects, of which two are new focus areas for the Company. Drilling of these mineral rights is anticipated to occur in 2005 with 10 to 15 additional wells planned.
With increasing production in Canada and in Yemen, it is expected that total Company production will reach 5,000 Boepd during the first quarter of 2005. It is anticipated that pipeline and facilities construction on the An Nagyah discovery on Block S-1 in Yemen will be completed by mid 2005. This development, coupled with the production increases in Canada, is expected to increase the Company's total production to approximately 6,000 Boepd. The average production for 2005 is projected to be 5,500 Boepd with a cash flow estimate of US$24.0 million (assuming a Brent oil price of US$35.00 and a natural gas price of Cdn $6.00/Mcf) for the year 2005.
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