Stealth Ventures Ramps up Shale Gas Development Program
Stealth Ventures Ltd. has announced the second stage of its shale gas drilling program, which commenced July 3. This development drilling program will tie in an additional 70 producing shale gas wells at Wildmere, Alberta over the remainder of 2008. The program is fully funded with the successful equity private placement closed on May 30, 2008 and as press released on June 2, 2008. Stealth anticipates significant generation of cash flows from this program, such that drilling programs through 2009 and beyond will be funded primarily with cash flow and senior debt. Management is currently reviewing a potential increase to its 2008 budget in light of stronger market prices as well as favorable service costs. This would boost the Company's forecast exit rate for 2008, currently anticipated to grow to approximately 1,200 BOE/d.
The shale gas development drilling program in Alberta has shown fundamentally sound production numbers and with rising prices for natural gas, recently above $10/Mcf AECO, it is Stealth's key corporate focus for continued solid production growth in 2008 and beyond.