Milagro has now drilled and cased three key wells using a portion of the proceeds from its recent financing. The three wells include two wells at Judy Creek, Alberta and one Duperow location at Battle Creek in southwest Saskatchewan. All wells are under budget and have allowed the company to add additional recompletions for potential additions to production in the near term. Completion and testing results have been interrupted and delayed throughout August due to rain at Judy Creek. Completion work at Judy Creek has resumed and results are expected shortly along with Battle Creek. The A14-31-03-26 W3M well at Battle Creek was cased and rig released on August 25, 2007 and completion work is scheduled to begin after the Labor Day weekend.
Due to lower than expected costs of operations resulting from efficiencies realized by the Company, Milagro will be recompleting a well at Elmworth, Alberta (100% working interest) for additional Fahler zones in the immediate future and has recently recompleted a commingling operation at Kakwa (7% working interest) that is currently flowing at 800 mcf/day with high NGL's and is expected after clean up to flow at 1.7 mmcf/day.
Milagro anticipates being in a position to provide a complete operational update on all of its operations by mid September.
Milagro is an exploration and production company engaged in the acquisition, exploration, development and production of oil and natural gas reserves in western Canada.
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