"The success we have had this year drilling on the Petrol-Neodesha properties represents an integral part of our growth strategy," said Paul Branagan, Petrol's Chairman and CEO. "The property offers us the opportunity to generate significant cash flow, through low-risk drilling activities, as demonstrated by our success this year. The last three wells that we have drilled and completed are already producing about 150 Mcfd into the sales line after only one week of de-watering. Our recently completed debt financing will support an aggressive development program for our Coal Creek project, while cash flow from Petrol-Neodesha will allow us to continue drilling and development at Petrol-Neodesha. With the additional capital, we expect to accelerate our drilling activities, which have resulted, during the past 6 months of this year, in 11 new wells, of which 8 are completed and producing gas, while the last three are awaiting stimulation and hook up to the sales line."
According to a December 31, 2004 Reserve Report, Petrol has gross Proved Reserves amounting to approximately 9.9 Billion cubic feet (BCF) within its Petrol-Neodesha properties. Petrol-Neodesha, located in the Thayer field, is a very active CBM gas producing area and lies within Wilson and Neosho counties, Kansas. Petrol currently produces natural gas from 80 producing wells in Petrol-Neodesha.
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