Portrush Announces Initial Flow Rates from the Texas Wells.
VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 2, 2004
Portrush (CDNX:PSH) (OTCBB:PRRPF) wishes to announce that further to its release of January 28th whereby it had signed a letter of intent with the McAlester Fuel Company of Houston, Texas to develop certain properties in the Texas Gulf Coast, the first two wells have reached total depth. Portrush has a 5% working interest in both wells.
The San Bernard No.1 well, Colorado County, Texas was drilled to a total depth of 4,344 feet. The well was completed and tested gas from the Lower Frio formation. The well flowed 900 Mcfd with 1,515 psi on a 10/64" choke. Shut in well and shut in tubing pressure reached 1,550 psi in ten minutes. The actual open flow for the well was 15.5 million cubic feet of gas per day. There was virtually no pressure draw down.
The North Strahan No.1 well, Austin County, Gulf Coast, Texas, approximately 75 miles Southwest of Houston, was drilled to 4,487 feet. Production casing has been set and four zones of particular interest between 3452 feet and 4048 feet appear to be hydrocarbon-bearing.
Completion attempts will be made immediately, beginning in the lowermost zone(s) and coming up the wellbore, as soon as weather permits. Recent unusually heavy and continuous torrential type rainfalls have made ingress and egress to the wellsite location very difficult.
Both wells can be placed on production within thirty days. Currently prevailing market prices for natural gas is between $5.00 and $6.00 per thousand cubic feet at the wellhead.
The operator has advised that drilling of the first twelve wells of the Mission River oilfield development in Refugio and Goliad Counties, Gulf Coast, Texas, will commence in a matter of weeks. Portrush will earn the right to participate in the additional development of the property as spacing may dictate on the project. The company's 10% working interest will be vested concurrent with the funding of and completion or abandonment of each well.
The initial twelve (12) well program will test (a) bypassed oil and gas payzones in the traditional producing intervals from 5,000 to 6,400 feet; (b) untested shallow oil at 4,100 feet and (c) untested shallow gas from 600 to 2,300 feet. Openhole and cased-hole logs, sidewall cores and open hole repeat formation testing will evaluate these intervals for completion. The project will add to the company's cash flow almost immediately, following drilling and completion operations. The operator conservatively estimates that the property has potential to add over 2 million barrels of oil and 10 billion cubic feet of gas to the existing reserves as a result of the proposed program. A gas pipeline runs through the property.
The company also wishes to announce it has agreed a 7.5% commission on the previously announced 3.75 million share private placement at 20 cents a share.
Information on the company can be obtained by calling 800-828-1866 or at Portrushpetroleum.com.
We will continue to update as both the Michigan and Texas projects go forward.
The company relies on litigation protection for "forward looking statements."
ON BEHALF OF THE BOARD,
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.