Longford Energy has successfully completed a five well drilling program which commenced during the fourth quarter of 2007.
Longford Energy has participated in the drilling of five (2.07 net) wells in the fourth quarter of 2007. The program has been successful, resulting in one (0.49 net) gas well and four (1.58 net) oil wells for an overall success rate of 100%. The drilling program was funded from the proceeds of the previously announced sale of the Company's Barrhead Coal Bed Methane assets together with available working capital.
The first well of the program was drilled in November 2007 in Twp 47 Rge 10 W5M in the Brazeau area of Alberta. The well has been cased and completed as an Edmonton Sand gas producer. Longford earned a 49% interest in the well which is expected to commence production in February 2008.
Longford has also participated in a four well drilling program in December 2007 in Twp's 48 and 49 Rge 26 W3M in the Lashburn area of west central Saskatchewan. All four wells have been cased as oil producers. The primary zone of interest was the Sparky formation, which produces 12 degree API crude in the area. Additional pay zones were encountered in two of the wells. Production has commenced from one well in December 2007, with the remaining three to begin production in January 2008. Longford has earned a 36% interest in three wells and a 50% interest in one well.
The Company will provide an update on production volumes from all wells in the near future once production has stabilized.
The Company is optimistic and continues to investigate its strategic alternatives. These alternatives may include, among other things, revisions to the Company's strategic plan, asset divestitures, operating partnerships or identifying additional capital sources. The Company does not intend to comment on developments regarding the evaluation of alternatives.
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