Admiral Bay Provides Update On Its Operations In The United States, Ontario And Mexico.TORONTO -- 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 Starting with the iMac in 1998, the ADB was superseded by USB. ) - Independent resource evaluation by Questa Engineering confirms potential for over 159 billion cubic feet of Proved, Probable and Possible recoverable reserves at three projects Admiral Bay Resources Inc. (TSX VENTURE:ADB) is pleased to provide an update on its coalbed methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. (CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter ) operations in the Cherokee, Uintah and Northern Appalachian Basins in the U.S., as well as at the Moose River Moose River River, northeastern Ontario, Canada. It flows northeast for more than 60 mi (100 km) to empty into James Bay. A wide stream, it is actually the estuary for several rivers, including the Abitibi and Mattagami. Basin in Northern Ontario Northern Ontario is the part of the province of Ontario which lies north of Lake Huron (including Georgian Bay), the French River and Lake Nipissing. Northern Ontario has a land area of 802,000 km² (310,000 mi²) and constitutes 87% of the land area of Ontario, although it and at its Silver/Gold property in Mexico. During the past year Admiral Bay has aggressively entered the coal bed methane business with the purchase of six projects with over 80,000+ acres in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Admiral Bay has drilled, reactivated and completed over 41 wells, laid 30+ miles of pipeline, and built compression systems Compression Systems (formerly Cooper Compression / Cooper Energy Services / Cooper Turbocompressor / Cooper), a division of Cameron International,is a provider of reciprocating and centrifugal compression equipment and aftermarket parts and services. and taps into major pipelines at its Swordfish swordfish, large food and game fish, Xiphias gladius, of the warmer Atlantic and Pacific waters, related to the sailfish. It is named for its sharp, broad, elongated upper jaw, which it uses to flail and pierce its prey of smaller fish, rising beneath a school , Devon and Shiloh projects in the Cherokee Basin in Southeastern Kansas. Admiral Bay is presently producing 560 MCFGPD (thousand cubic feet gas per day) from its Shiloh and Quest projects and expects continuous production from its Devon and Swordfish projects shortly. Admiral Bay is also pleased to announce the completion of an independent resource calculation report on its Swordfish, Shiloh and Devon projects by Questa Engineering Corporation of Golden, Colorado The City of Golden is a home rule municipality that is the county seat of Jefferson County, Colorado, United States. Golden lies along Clear Creek at the eastern edge of the foothills of the Front Range of the Rocky Mountains. , which also included data from Bowler Petrophysics Petrophysics (petro is Latin for "rock" and physics is the study of nature) is the study of the physical and chemical properties that describe the occurrence and behavior of rocks, soils and fluids [1]. Inc. The report defines the net Proven, Probable and Possible oil and gas reserves as follows:
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Project Proved Probable Possible Possible
BCF(a) BCF(a) BCF(a) Mbbls(a)
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Shiloh 6.687 1.585 3.263
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Devon 0.740 99.595 156
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Swordfish 47.586 2,058
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TOTAL 6.687 2.325 150.444 2,214
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(a) Billion Cubic Feet (BCF) / Thousand Barrels of Oil (Mbbls)
At the time the report was completed, several wells had not been evaluated as they either had only recently been connected to the pipeline, were in the process of being completed or were being drilled. The report also does not include potential resources for the Revloc, Santa Rita Santa Rita may refer to:
At the Shiloh Project located in the Allen and Neosho counties, Kansas, Admiral Bay is presently producing 360 MCFGPD into Quest Petroleum's gas gathering system. The production at Shiloh is being restricted by high discharge pressure Discharge pressure (also called high side pressure or head pressure) is the pressure generated on the output side of a gas compressor in a refrigeration or air conditioning system. that is limiting sales. Admiral Bay has entered into an agreement with Southern Star to sell gas into their major pipeline, which crosses the property. Completion of the tap is expected in the month of March, which will allow for unrestricted sales. Admiral Bay has also drilled an additional ten wells that are awaiting pipeline connection and intends to begin drilling six wells a month and expanding its acreage position in the project area. The project presently has 8,000+ acres and the coals are situated from 155 to 340 meters (600 to 1,150 feet). The Devon Project in eastern Kansas is about to begin flowing gas into the sales line. The project is located in Bourbon County in the Cherokee Basin. Admiral Bay has twelve wells connected into its main gathering system and has an additional seven wells currently being completed with production lines being laid. Problems with sales have revolved around leaks in the main sales line owned by Southern Star and compressor issues. Admiral Bay expects to be selling gas shortly as soon as the problems are resolved. The project has over 28,000 acres and leasing is ongoing, with the coals situated from 105 to 168 meters (350 to 550 feet). Admiral Bay's joint venture in the Swordfish Project with Charter Capital Corp. is progressing with the drilling of an additional two development wells. The Swordfish Project is located in Chautauqua County, Kansas Chautauqua County (county code CQ) is a county located in Southeast Kansas, in the Central United States. The population was estimated to be 3,953 in the year 2006.[] Its county seat and most populous city is Sedan. . The McKenzie 14-15 and the House 3-25 have already been drilled and completion will begin this week. The McKenzie well is an oil well with five potential zones and the House 3-25 is a gas well with one potential conventional gas zone. None of the wells will be completed in the coals or shales at this time. The drilling of the next two wells; the Holyrud 12-15 and the House 3-26 will begin this week. The first twelve wells in the joint venture with Charter Capital Corp. are re-drilling of existing wells capable of producing significant hydrocarbons, but which were abandoned due to lack of markets or low product prices. Coal samples were collected from the House 3-25 and early indications are the coals contain similar gas contents to the Shiloh and Devon Project areas. Admiral Bay has 34,000 acres in the project area and has installed a tap into Southern Star's major pipeline. Two previously drilled wells that are hooked into the tap are awaiting a nitrogen stripping plant before sales can begin. At the Revloc Project in Cambria County, Pennsylvania Cambria County is a county located in the U.S. state of Pennsylvania. It is almost entirely part of the Johnstown, Pennsylvania Metropolitan Statistical Area. As of 2000, the population was 152,598. , Admiral Bay is in the process of permitting two wells to be drilled in late February or early March. Presently, Admiral Bay has 6,000 net acres. The two initial wells are test wells designed to collect data on gas in place and to determine the best completion methods. The State of Pennsylvania has published reports that indicate the potential for wells in Cambria County have on average over 450 standard cubic feet (SCF SCF Service Canadien des Forêts (Canadian Forest Service) SCF Stem Cell Factor SCF Scientific Committee on Food (European Commission) SCF Service Canadien de la Faune ) per ton. There are a total of seven coal seams that Admiral Bay is targeting at less than 335 meters (1,100 feet). The company continues to acquire additional acreage in the project area. At the Quest Project in Utah. Admiral Bay is presently netting 200 MCFGPD. The project is located on the east side of the Uintah Basin and comprises 8,000+ acres. The area has become very active and the operator of the project, TCC TCC The Car Connection (web site) TCC Tidewater Community College TCC Tallahassee Community College TCC Temporary Continuation of Coverage TCC Tucson Convention Center (Tucson, AZ, USA) Royalty has announced that they have been approached by several potential buyers to purchase the project. This project area is distant from the company's core focus for coal bed methane and has significantly higher operating costs compared to the Cherokee or Appalachian basins. Admiral Bay expects to sell the project by the end of March. The Santa Rita Project located in Greenwood County, Kansas Greenwood County (county code GW) is a county located in Southeast Kansas, in the Central United States. The population was estimated to be 7,067 in the year 2006.[] Its county seat and most populous city is Eureka. Geography According to the U.S. , has 13,400 acres and the coals are located from 730 to 850 meters (2,400 to 2,900 feet). A series of 2-D seismic lines have been shot to define oil and gas targets and to better locate the initial test wells for drilling to test the coals and black shales for gas. The Company will drill its initial test well during the summer of 2005. Admiral Bay has completed its winter drilling program at the Moose River Project in the James Bay lowlands of Northern Ontario. The Company has drilled nine wells across its 250,000+ acreage block and has encountered only one 20 foot lignite lignite (lĭg`nīt) or brown coal, carbonaceous fuel intermediate between coal and peat, brown or yellowish in color and woody in texture. seam. In two of the wells, no Cretaceous age sediments that could contain lignite were encountered. As a consequence of results from the current program and in conjunction with limited data from the previous programs, Admiral Bay has come to the conclusion that there are insufficient quantities of coal necessary to initiate a pilot program or continue its exploration for coalbed methane. Admiral Bay has completed an aeromagnetic survey in order to assess the potential for other resources (base metals and diamonds) and is seeking partners for the property. At its Hosto silver/gold project in Jalisco State Mexico, Admiral Bay has entered into a letter of intent to option a 51% interest in the project in exchange for expenditures of C$500,000 over a 12 month period. During 2004, Admiral Bay initiated a 3,000 meter drill program on the Monte del Favor project with extensive trenching and geochem work. Results of this program deemed the project to contain insufficient tonnage to retain the project as a core asset. Admiral Bay Resources Inc. (www.admiralbay.com) is a Canadian oil and gas exploration and development company focused on its producing projects in the Cherokee Basin in southeast Kansas. Conventional gas and coalbed methane (CBM) production has begun at the Company's Shiloh, Devon and Quest projects in the United States. The Company 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. . Statements in this release that are not historical facts are "forward-looking statements" 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 adequacy of this release. Admiral Bay Resources Inc. (TSX VENTURE:ADB) |
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