Tusk Drills Significant Gas Well in Alberta
Tusk Energy Inc. announces that it has participated in a second gas well in the Shane area of northwestern Alberta. The well, a follow-up to a gas discovery drilled by Tusk and partners in 2001, encountered gas bearing Kiskatinaw sand about 1 mile to the northeast and updip from the initial well.
The initial well (Tusk 17%) commenced production in October, 2001 and produced at average rates of approximately 8 MMcfd with 35+ barrels of NGL per MMcf (280 boepd net to Tusk) for the first year. Production rates have recently been increased and current production is approximately 13 MMcfd and 400 bpd of NGL (440 boepd net to Tusk). The new well (Tusk 35%) will be completed and tested in the next few weeks and commence production during the first quarter of 2003.
Current production at Tusk is approximately 2,300 boepd (50% oil, 50% gas). On November 5th Tusk announced record levels of production (2,232 boepd), cash flow ($3,483,681), cash flow per share ($0.21), net income ($1,122,081) and earnings per share ($0.07) for the third quarter of 2002. Current net debt is approximately $13 million. In recognition of the expanding asset base, the Company's line of credit has been increased to $20 million.