Bulldog Energy Makes Two Discoveries in Alberta
Bulldog Energy Inc. announces the drilling of two successful gas wells in the Rosevear area of west central Alberta. The wells are currently being tied in with an expected combined initial gross production rate of approximately 2 mmcf/day. Bulldog's average 31% working interest in these properties will yield net production volumes of 600 mcf/day.
Bulldog recently farmed in on these properties. As part of the transaction, Bulldog has the option of buying 50% of the farmors' residual interest in one of the gas wells, the earned lands and the balance of the farmors' surrounding undeveloped lands. We are currently evaluating this opportunity. Bulldog has also recently increased its presence in the Rosevear area through a property acquisition for $1.5 million cash. The acquisition included production of 465 mcf/day (net) of gas, 23 bbls/day (net) of oil and liquids and an average 33% working interest in 4160 gross acres of land. We have doubled our gas production in this area through drilling and intend to aggressively pursue opportunities on our lands after break-up. Our current plans are to tie in an existing gas well, drill three new wells, and re-enter and evaluate two existing wells. Additional projects are being pursued through this multi-zone liquids rich gas area. The drilling and evaluation of two exploratory wells at Sarcee, Alberta, which Bulldog participated in as disclosed in the recent prospectus, did not recover oil and natural gas at economic rates. However, through the drilling of these wells, Bulldog earned an average 25% working interest in 9.5 sections of land, a 50% working interest in an existing oil well at Sarcee currently producing 10 bbls/day (net) and an average 56% operated working interest in the Willmar, Saskatchewan property currently producing 10 bbls/day (net). Three potential drilling locations are being evaluated on the Willmar property.
Bulldog has been in operation for three months since the completion of its' initial public offering in late December 2001. Total funds raised to date are $5 million resulting in 6,555,600 Class A and 372,768 Class B shares outstanding. These shares trade on the Canadian Venture Exchange under the trading symbols BDE.A and BDE.B. Following the tie in of the aforementioned wells, Bulldog's production volumes will average approximately 1.065 mmcf/day of natural gas and 43 bbls/day of oil and liquids.