"These results are encouraging and we are still early on the learning curve. Given the prime location, close to gas markets, these wells have healthy economics at rates below half a million cubic feet per day," said Dr. Jim Buckee President and Chief Executive Officer.
The first well, Fortuna Ganung Hz, tested a non-producing structure in Schuyler County, New York. Despite some operational problems, the well still tested at rates up to 2.4 mmcf/d. Plans are currently underway to tie the well into a local gathering system.
The second well, Fortuna Konstantinedes Hz, was drilled in Chemung County, New York. After completion, the well flowed at rates up to 10.4 mmcf/d and is currently shut-in for a pressure buildup test. Work is underway to have the well tied into the Columbia high-pressure transmission system by the end of the year. This was a commitment well and success here upgrades a significant area and increases prospectivity.
Fortuna's third well, Hepfner, is currently drilling.
Two additional rigs are currently being mobilized, a fourth well is expected to spud in September and another in mid October. Additional projects underway include the installation of three compressors, all expected to be on stream by year end and the tie-in of the Fortuna Pace well, which should be on stream in early 2004 at a rate of 5 mmcf/d.
Fortuna's production in July was 67 mmcf/d, with natural gas prices averaging C$9.81/mcf this year. Fortuna plans to spend US$46 million in the area in 2003, drilling eight wells. Continued drilling success should lead to production growth in 2004.
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