Berkley to Add 6% Gas Well to Production Portfolio.Energy Editors/Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 2, 2004 Berkley Resources Inc. (the "Company") announces that it has participated for 6% of the cost to complete a successful Devonian gas well in the Leduc Area of central Alberta Central Alberta (also named Alberta's Heartland) is a region located in the Canadian province of Alberta. Central Alberta is the most densely populated rural area in the province. Agriculture and energy make up an important part of the economy. . The well tested 2.8 million cubic feet per day (2.8 mmcf/d) and is expected to be produced at about 2 mmcf/d. The well will be tied-in as soon as pipeline permits can be obtained. First gas sales are expected by mid to late March 2004. Based on an average annual price of $6.00 per thousand cubic feet ($6.00/mcf) and a netback net·back n. Linkage of the price of crude oil to the market price of products refined from it. of $4.00/mcf Berkley expects its share of cash flow from this well to be about $175,000 per year through payout, reducing then to about $130,000/year when the Company's working interest reduces from 6% to 4%. The Company also completed the purchase of a 20% share of 130 barrels/day of on line oil production (net 26 bbls/d) in southwestern Saskatchewan. The cash costs to Berkley after adjustments totaled $366,000 or $14,000 per barrel of oil per day. Sustained high oil prices into the first quarter 2004 enhances the profitability of this acquisition. Based on a projected average annual oil price of Cdn. $35/barrel and a netback of $20/barrel this acquisition would provide upwards of $190,000 in cash flow to the Company during 2004. This acquisition also provides opportunities for both infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. and extension drilling. The Company will continue to seek out good on-line production purchases to increase its cash flow. At the same time as it seeks to purchase good on-line production, the Company is moving ahead with new exploration opportunities. Its Crossfield project is now drill ready with good seismic control and strong leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. position of over 3,000 gross acres. Berkley holds 35% working interest in this natural gas prospect. Drilling is expected to be commenced during the second quarter 2004. A long standing impediment A disability or obstruction that prevents an individual from entering into a contract. Infancy, for example, is an impediment in making certain contracts. Impediments to marriage include such factors as consanguinity between the parties or an earlier marriage that is still valid. to the drilling of the Sturgeon Lake Sturgeon Lake may refer to:
v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. , the Company will work with its partners to complete farmout arrangements for the drilling of the initial test well expected to be commenced late in the third quarter 2004. ON BEHALF OF THE BOARD: Matt Wayrynen, President 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. has not reviewed and does not accept the responsibility for the accuracy or adequacy of this release. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion