Admiral Bay Cites Record Production for November at Canadian Assets

Admiral Bay Resources has reported record production for the month of November 2008. Shiloh gross sales increased to approximately 2.2 MMCFGPD, Mound Valley increased to approximately 1.0 MMCFGPD and Devon production which includes the Company's share of third party gas is at approximately 0.3 MMCFGPD. The Company has 12 wells ready for completion and 10 wells permitted for drilling that it expects will increase its gross sales to 4.0 MMCFPD during January weather permitting.

At the Shiloh Project, two new electric main compressors have been installed and sales have increased due to significantly lower fuel usage, lower line pressures and improved run times on the wells from improved operations. The Company is in the process of negotiating the processing contracts for third party gas which will increase its sales and allow it access for drilling development wells.

At the Mound Valley Project the Company recently drilled 12 wells with very encouraging results. Three of these wells have been completed and are on production and the remaining nine will be connected to the main gathering system during December. The Company recently upgraded its gathering system and will continue to develop the Mound Valley Project area once all wells are online.

At the Devon Project the Company is in the process of staking 10 wells which will test its new drilling methodology. Also being staked is a salt water disposal well that is awaiting approval by the Kansas Corporation Commission. The Company feels the new method for drilling and completing coal bed methane wells will allow better production rates at a significantly lower cost. The Company is not revealing the method at this time for competitive reasons. The new wells, subject to Kansas Corporation Commission approval, will be drilled in January, 2009. The Company is completing three wells by conventional methods that were bought in the recent purchase of the Ft. Scott Project. The Company has also added additional third party gas to the Bourbon County Pipeline system from Missouri.

The Revloc Project in Pennsylvania continues to dewater. The three wells recently completed are making gas. The Weiland 1 is presently between 15 - 20 MCFGPD and continues to slowly incline. The Williams 1 is presently at 4 MCFGPGD. The McWhorter #2 is presently at 2 MCFGPD. Dewatering is expected to take 10 to 24 months and will require additional wells to maximize gas production. The Company and its partner are close to acquiring the entire right of way needed to lay a 12 mile long pipeline. The tap and compressor site have been chosen and development will continue in 2009.

President and CEO Steven Tedesco commented, "Activity continues in all of our project areas as the Company continues to have success and increase production and lower costs. With the success of our 2008 drilling program and the expansion of our gathering system the Company has greatly increased its inventory of low risk drilling locations. This in turn will allow us to continue to post record production growth in 2009, further lower our operating costs and add to our reserve base."


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