Talisman's Appalachia Gas Well Tests at 19 mmcf/d

Fortuna Energy recently completed the Soderblom HZ #1 natural gas well in the Appalachian Basin of New York State. The well was drilled vertically and then steered horizontally to a total measured depth of 12,050 feet across a newly identified graben structure within the upper Black River Formation.

The well flowed on test at rates in excess of 19 mmcf/d, limited by surface equipment, with a flowing pressure of 2300 psi. Based on initial flow results, the Soderblom well could be equivalent to the Reed HZ #1 well, which was brought on stream in the spring 2004 at a rate of 34 mmcf/d and has produced 5.3 bcf to date. The pressure measured on the well test indicates a new pool has been penetrated by the Soderblom well.

The well is expected to be on stream in January 2005 at a reduced rate. Tie-in work is underway, along with additional pipeline and facilities work, which will allow maximum flow rates for this well and subsequent development wells. Full production rates are anticipated towards the end of the first quarter of 2005.

Fortuna Energy Inc. has an active exploration and development program in 2004, with plans to drill or participate in a total of 17 horizontal Black River wells and five vertical wells. Fortuna Energy Inc. expects to spend US$100 million in 2004. Fortuna is currently producing 110 mmcf/d.
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