Admiral Bay Provides Operational Update.DENVER -- Investor Conference Call Scheduled Tuesday, March 14, 2006 at 10:30 EST EST electroshock therapy. EST abbr. electroshock therapy Admiral ADMIRAL, officer. In some countries is the commander in chief of the naval forces. This office does not exist in the United States. 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 Starting with the iMac in 1998, the ADB was superseded by USB. ) is pleased to provide an operational update on its projects in the Cherokee Basin in eastern Kansas and the Appalachian Basin in Pennsylvania. CHEROKEE BASIN The Shiloh Project - This is the Company's most advanced project and is presently producing over 1 million cubic feet of gas per day (1MMCFGPD). Thirty-five wells are presently producing with an additional seventeen wells in the process of completion or will be connected to the pipeline over the next two weeks. The majority of the wells are producing from the Riverton coal only. Over the last several months, the Company has embarked on a well optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. program. The program consisted of remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. work on existing wells, increasing water handling capabilities, eliminating the need for expensive electrical generation, and the starting of a chemical injection program to reduce tubing corrosion that was leading to significant downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. on the wells. This program has significantly reduced well operating costs operating costs npl → gastos mpl operacionales and downtime since January 2006 and accounts for the majority of the recent marked increase in production. As part of the optimization program, the Company has been evaluating a number of the older wells drilled prior to Admiral Bay's ownership of the project. It has been determined that for a variety of reasons six older wells will be temporarily abandoned to reduce operating costs. With the recent increase in gas production to 1.0 MMCFGPD, the Company is reaching the maximum current capacity of its compression. In order to continue increasing gas production, a second compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve is currently being installed and should be operational within the next week. This will allow for gas production to increase to approximately 2.0 MMCFGPD before additional compression will be required. In preparation for increased production as Admiral Bay moves forward with is 2006 Development Program, the Company has ordered two additional compressors, to be installed in the coming months, as required. Admiral Bay is currently drilling three to four new wells a week on average, at the Shiloh Project. Beginning in March, the Company is utilizing three different drilling contractors, in order to minimize down time and to achieve its objective of drilling 18-20 wells per month across its projects. Of the 20 wells drilled in Shiloh since December, three have been connected to the pipeline and are selling gas, six wells will begin selling gas when the new compressor is installed, and the remaining 11 wells will be connected to the pipeline and selling gas before end of March. The present turn around for a well, from the beginning of drilling to connection to the pipeline is approximately 45 days, depending upon weather. As the Company moves forward, this turn around time should decrease as management fine tunes its approach and gains economies of scale. The company plans to drill 110 wells at the project in 2006. The Mound Valley Mound Valley is a city and a township in Hettinger County, Kansas:
In advance of the new tap facility, Admiral Bay is completing right of ways and beginning construction of connecting pipelines to existing and newly permitted wells along the proposed pipeline. There are currently five new wells that have been drilled and are awaiting completion and connection to the pipeline. The Company plans to begin drilling additional wells at Mound Valley in March, with the plan to drill more than 57 wells at the project in 2006. The Devon Project - This project presently has nineteen wells producing approximately 100 to 120 MCFGPD. Two wells drilled last summer, the Gross 8-1 and Gross 16-1 have been completed and connected to the pipeline. They are awaiting electrical hook-up by the utility which is scheduled to be completed by the end of next week. The Company has recently drilled one new well at the project and is about to embark on a well re-stimulation program. These new completion methods are being utilized by other operators in the area and have seen good results in the same coal zones. The company anticipates drilling a total of 23 wells in 2006. Admiral Bay owns a 45% interest in a joint venture pipeline in the project area. In addition to transporting Admiral Bay's gas production, the pipeline purchases 280 to 380 MCFGPD from other independent operators in the area and charges a transportation fee per mcf. Admiral Bay receives 45% of the revenue generated from the pipeline. The JV partners are currently negotiating with the independent operators to increase the capacity of the pipeline in order to accommodate increased production as Admiral Bay and other operators continue to develop their projects. APPALACHIAN BASIN The Revloc Project - The Company is preparing a pilot drilling program at this project that consists of seven wells. The pilot program will include taking core samples for desorption Desorption A process in which atomic and molecular species residing on the surface of a solid leave the surface and enter the surrounding gas or vacuum. testing and a complete reservoir analysis to confirm gas content, reserve potential and productive capacity prior to beginning further development. Admiral Bay is in the process of securing a drill rig for this test program. Drilling is anticipated to begin mid-summer. CONFERENCE CALL Tuesday, March 14th, 10:30 am Eastern Standard Time You are invited to attend a conference call to discuss the progress of the Company's operations. The dial in numbers in numbered parts; as, a book published in numbers. See also: Number are: (416) 849-7332 in Toronto, or Toll Free at 1-866-497-3339. Callers should request the Admiral Bay Resources Investor Update chaired by Steve Tedesco, 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. of Admiral Bay. If you are unable to attend this call, it will be posted to the Company's website (http://www.admiralbay.com/investor/presentation.cfm) the day following the conference call. You will be able to access the call by clicking on the Investor Area and going to "Presentations and Interviews" on the menu. 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 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 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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