Baker Energy Wins Service Contract from Storm Cat Energy

Baker Energy has received a $1.2 million contract from Storm Cat Energy, to operate and maintain its coalbed methane gas producing properties in the Powder River Basin in Wyoming. In all, Baker Energy will be providing operational support to three Storm Cat fields in the region - North East Spotted Horse, Jamison and 20 Mile - which comprise approximately 100 producing wells and associated gathering systems.

Under this one-year, evergreen contract, Baker Energy will be providing a broad range of managed services for Storm Cat in order to optimize the fields' production volumes. These include general management, operations and maintenance, production surveillance, water management, civil engineering and construction, data management, capital work program management, supply chain management, production reporting and accounting services.

"The addition of Storm Cat allows Baker to begin to leverage economies of scale within our Managed Services Network and maximize our supply chain in the basin to lower costs and improve the effectiveness of our operations," Dick Giffhorn, president of Baker Energy, said. "Baker is looking forward to a long-term, mutually profitable relationship with Storm Cat Energy." Giffhorn added that Storm Cat is the second major client Baker has in the Powder River Basin, and this expanding network of facilities brings greater efficiencies through the utilization of the existing operational infrastructure.

"Storm Cat believes that the skill sets of each company compliment each other nicely," Scott Zimmerman, president of Storm Cat, said. "Together we will be able to implement Storm Cat's strategy of being a highly recognized non-conventional gas producer in North America. The North East Spotted Horse Field is also located in close proximity to our recently acquired North Jamison/Twenty- Mile field which will provide operational synergy and additional cost savings."