Clear Energy Temporarily Shuts in Canadian Gas Wells

Clear Energy has temporarily shut-in production from the Shane Kiskatinaw "D" pool in Canada.

The Pool was subject to EUB Order No. GA360 issued on June 10, 2003, that described the manner in which production was to be allocated from the pool and determined that production must be balanced on a monthly basis with any under or over-production in any month being balanced in the following month.

The off-target producer intentionally shut-in its well located within the Pool over the last two months. A clarification by the EUB Panel on this situation determined that over-production by all of the other Pool producers has occurred, resulting in the requirement that such other producers temporarily shut in their production from the Pool.

Clear Energy will therefore be temporarily shutting in approximately 1,600 boe per day of net production, however, this temporary shut-in does not affect its share of Pool reserves. This shut-in situation will now enable Clear Energy to bring on an existing tied-in gas well at Shane 8-1-77-2 W6M (net 150/boe per day to Clear Energy) that had been previously shut in due to facility constraints.

Clear Energy and its partners will be taking all necessary steps to ensure production from this Pool comes back on-stream as quickly as possible.

This situation will in no way affect Clear Energy's ongoing drilling and other activities.
Company: Clear Energy Inc. more info
 - Clear Energy Temporarily Shuts in Canadian Gas Wells (Aug 06)