Strike Petroleum's Recent Drilling Program Sees 83% Success Rate
Strike Petroleum says since September 2005 the company has drilled 11 exploration wells and 1 re-entry well. The drilling program has yielded 9 gas wells; 1 oil well; 1 suspended well and 1 abandoned well resulting in a success ratio of 83%.
Given the exploratory nature of our program, we are very pleased with our level of drilling success.
The drilling rig was released on December 9 and completions and production testing were released on December 19. We have placed one gas well on production and expect a second gas well on production prior to the end of the year. Five additional wells have been licensed for pipelines and the pipeline crews are in the field.
Strike's current daily production is 284 BOE/d. We expect to exit December 31, 2005 with 450 BOE/d. An additional volume of 200 BOE/d will follow as pipeline crews complete operations, expected by mid February 2006.
Strike continues to expand its land base at crown sales and farm-ins. An additional eight sections in prospective P&NG rights have been added since September. Three sections were purchased at Alberta land sales and five sections were secured through farm-in agreements. We have expanded our core areas to include Youngstown and Sedalia by successful earning wells on these farm-in agreements. Strike presently has one commitment well planned for January.
Strike has completed its private placement financing, raising gross proceeds of $4,000,000 through the issuance of 5,000,000 flow-through common shares. As a result of the private placement offering, Strike now has 19,614,358 common shares issued and outstanding.
Strike has also increased its banking facility to $3.5 million. The combination of its recent financing, increased bank line and cash flow will fund Strike's activity into the first and second quarter of 2006.
Strike is a Calgary-based junior oil and gas corporation with its principle producing properties located at the Kirkpatrick Lake, Youngstown, Sedalia, Jumpbush and Majorville areas of Alberta.
(1) BOEs derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf: 1 bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
- Strike Petroleum's Recent Drilling Program Sees 83% Success Rate (Dec 27)