Marksmen Resources Drilling Update: Penhold, Eastmount and Belly River
Marksmen Resources Ltd. has drilled its first operated well at Penhold and completed and tied-in its second Eastmount well in addition to re-activating a shut-in Belly River well at Alder Flats.
The Penhold well, in which Marksmen has a 98% working interest, encountered approximately 70 feet of net pay in the Edmonton sand and flow tested at a rate of 775 mcf/d at a stabilized flowing pressure of 185 psia. The well has a short tie-in to the main gathering system and is expected to be on stream on or about March 1, 2008. Based on mapping and offsetting production, there is the potential to drill up to 10 additional development locations at Penhold.
In the last quarter of 2007, Marksmen participated in its second well at Eastmount in which the company as an 11.1% working interest. The well came on stream Dec. 15, 2007 from the Glauconite formation and is currently producing at a rate of 1.0 mmcf/d ( net 18 boe/d). The third Eastmount development well spud last week and is expected to reach its target depth in the third week of January and if successful is anticipated to be on-stream by mid February.
The company's current production is between 130 and 140 boe/d with about 60 boe/d estimated to be behind pipe waiting to be tied-in.
Management continues to seek additional merger and acquisition opportunities to complement the production growth that is being pursued through low risk development drilling. The current low natural gas price environment has created significant opportunities for Marksmen at Penhold and in other areas. The company is presently sourcing growth capital in order to take full advantage of these opportunities.