Stealth Reports Progress with Shallow Shale Gas Program

Stealth Ventures Ltd. said that, after a long and wet spring, it has commenced its shallow shale gas drilling program in Alberta and Saskatchewan over the last month.

In Alberta, the company completed drilling operations on a second earning well with its partner, a large multinational independent. The well was cored through two target intervals identified by the first earning well in the same area. Pending core analysis the well has been cased and will be completed for flow testing within the next several weeks.

At Foam Lake, Sask., six test wells have been drilled and cased in the ongoing drilling program. Stealth has a 50% interest in the program, which could reach a total of sixteen wells by the fourth quarter. The company intends to evaluate several producing zones, including the Upper and Lower Colorado Group, for shallow and shale gas. Extensive sample and core analysis is planned in order to evaluate the area for gas potential.

At Moose Jaw, Sask., Stealth’s partner has obtained surface leases and drilling licenses for up to an additional 16 locations. A continuous drilling program should commence within the next several weeks. At Moose Jaw, Stealth plans to evaluate several producing zones--including the Milk River Formation and the Upper and Lower Colorado Group. Some of these tests will be drilled deeper, targeting prospective Middle Jurassic zones identified in historic data wells. As at Foam Lake, the company plans to undertake extensive sample and core analysis on its Moose Jaw wells.

Once the first phase of drilling has been completed, Stealth intends to complete further testing and evaluation on all lands, including its first two wells drilled last February at Shell Lake. The Shell Lake evaluation was delayed in order to incorporate it into the Foam Lake and Moose Jaw programs.

Stealth continues to build upon its position in the Cretaceous Colorado Group shales where its strategic acquisition of acreage has given the company the opportunity to understand the basin-wide Colorado play type that covers a large part of Alberta and Saskatchewan.

Stealth also issued an update on its Nova Scotia coal bed methane (CBM) program.

At Stellarton, the company is continuing to gather data via two pilot core holes--one of which is completed--with ongoing core testing including canister desorption tests for gas content. The drilling rig released from this site previously will now return to the Cumberland basin, where Stealth has completed construction of a 16-well drill pad required for the next phase of development. With the encouragement of Stealth's partner the Coalmine Brook No.12 well will be drilled targeting the No.2 coal seam, one of four prospective seams within the basin. The service rig, which was released to an area operator on a contract window, will return to Stealth's first horizontal well in Cumberland (Coalmine Brook No.3) to conduct routine cleanout operations prior to further production testing.

The Cumberland and Stellarton basins in Nova Scotia represent a gas resource play for Stealth estimated by Sproule Associates to contain net 1.313 TCF of “Discovered CBM Resource.” Stealth is a Calgary-based junior oil and gas company whose expertise and focus is on unconventional gas reserves like CBM, shale gas, and tight gas sand reservoirs.