Admiral Bay's Board Of Directors Approves US$26 Million Development Program For 2006.DENVER -- Admiral Bay Resources Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:ADB (Apple Desktop Bus) A low-speed serial bus for connecting keyboards, mice and other input devices on Apple IIgs and Macintosh computers. Starting with the iMac in 1998, the ADB was superseded by USB. ) - - Company to focus on development at the Shiloh, Mound Valley Mound Valley is a city and a township in Hettinger County, Kansas:
Admiral Bay Resources Inc. (TSX VENTURE:ADB) is pleased to announce highlights of its calendar 2006 Development Program for projects in the Cherokee and Appalachian Basins. Admiral Bay has now received Board approval for its 2006 Development Budget based on closing of its previously announced debt facility later this month. Capital expenditures are set at US$ 26.0 million with plans to drill 202 gross/net wells within the Company's Kansas and Pennsylvania asset base. The Development Program calls for the drilling of 18 to 20 wells per month, beginning in March and continuing for the remainder of the year. The Development Program will be focused at the Shiloh, Mound Valley and Devon projects in the Cherokee Basin in southeast Kansas Southeast Kansas is a region of the U.S. state of Kansas. It can be roughly defined by Woodson County in the northwest, Bourbon County in the northeast, Cherokee County in the southeast, and Montgomery County in the southwest. and the Revloc project in the Appalachian Basin in Pennsylvania. The Company's current cash position coupled with cash flow from production and proceeds from the debt facility, will fully fund the Company's 2006 Development Program. Drilling began at the Shiloh project in January, with expansion of drilling to the other projects beginning in March. Work to connect existing wells to the pipeline and remedial work to enhance production at the projects has also been underway since the beginning of the year. To date, the Company has drilled or re-activated 105 wells across its projects. Due to previous funding constraints and management changes there was only a small amount of drilling that took place in the last quarter of 2005. The 2006 Development Program calls for the drilling of 202 new wells across four projects. The company plans to drill 110 wells at the Shiloh project, 57 wells at the Mound Valley project, 23 wells at the Devon project and 12 wells at the Revloc project. The number of wells at each project is subject to change depending upon results and market conditions. In addition, the Program will provide funding to add compression and pipelines to facilitate production and to increase project size by continuing to lease additional acreage in the project areas. Stated Steve Tedesco, the Company's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "Over the last two years the Company has narrowed its focus to unconventional gas resources, including coal bed methane, shale gas
Shale gas is natural gas produced from shale. Because shales ordinarily have insufficient permeability to allow significant fluid flow to a well bore, most shales are not sources of natural and shallow tight gas sands, in the Cherokee and Appalachian Basins. This budget moves us into an aggressive development phase in our project areas. By drilling over 200 wells the Company should see significant increases in both production and proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. during the year." Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. under the symbol ADB. Statements in this release that are not historical facts are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements". The TSX Venture Exchange does not accept responsibility for the ad equacy of this release. Admiral Bay Resources Inc. (TSX VENTURE:ADB) |
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