Luke Energy says that its current
production in Canada has doubled to 2,100 boepd (96% gas) from fourth quarter 2004
average production of 1,047 boepd (94% gas). The sharp increase in production
is attributable to the Company's recent successful winter drilling program at
Marten Creek in northern Alberta where 24 wells were drilled resulting in
18 cased gas wells. Marten Creek's gas production has subsequently doubled
from 6 MMcfpd to 12 MMcfpd. Plans are to further increase production to
14-15 MMcfpd in a couple of months to take advantage of the additional
deliverability from the successful wells. Over the past year the Company's
land position in the area has almost tripled to an average 85% interest in
some 38,000 acres. Luke Energy is continuing to expand its position at Marten
Creek and a third multi-well drilling program is planned for next winter.
During the first quarter of 2005 the Company drilled a total of
27 locations in all project areas which resulted in 20 successful gas wells.
The Company's average interest in the wells drilled was 95%. In other
developments, the Company has identified two new potential gas areas in
western Alberta on which it is building land positions. Additional acreage
will be accumulated in the coming months.