Tusk little sister company doing OK.If they keep adding production at that rate they will soon catch up to Tusk and be able to launch a take over for its parent company!
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Loon Doubles Production
CALGARY, ALBERTA--Loon Energy Inc. is pleased to announce that it
has doubled its production after its Strachan and Warwick gas
wells commenced production in October. These wells have increased
Loon's production to 130 barrels of oil-equivalent per day (BOE/d)
as compared to 62 BOE/d in the second quarter. Natural gas now
comprises 75% of Loon's production base.
At Strachan, the 2-22 discovery well has been tied in to the Gulf
Midstream Strachan gas plant. The well commenced production from
the Beaverhill Lake formation October 12, 1999, and is now
producing at a raw gas rate of 5.5 MMcf/d. Loon expects the well
to stabilize at 5 MMcfd of raw gas, of which Loon's net share of
sales gas and NGL's (10% BPO, 5% APO) would be 33 BOE/d.
Loon's Warwick 5-36 gas well commenced production October 21, 1999
on test at a rate of 1.5 MMcfd. Loon and its partners expect to
produce the well at 1.2 MMcfd, of which Loon's net share (25%)
would be 31 BOE/d with NGL's.
Loon's production base is now divided amongst four properties:
Strachan, Warwick, Carvel (gas) and Grand Forks (oil). Loon plans
to drill at least 4 wells before year-end, most of which are based
on internally-generated prospects. Plans are underway at Epping,
Silverdale, Carvel, Forty Mile Coulee, Birch and other areas.
The Company has also applied to the Alberta Stock Exchange for
approval to issue a maximum of 4,500,000 flow-through and ordinary
common shares at prices of $0.12 and $0.10 per share,
respectively. This financing will be conducted by the Company
directly with no agent and will be offered to subscribers eligible
under certain securities exemptions. Proceeds will be used to
develop the Company's oil and gas prospects and for general
working capital purposes. The Company may close the financing at
less than the approved maximum number of shares, based on the
level of cash flow and capital requirements at the time of
closing.
Loon is a public, Calgary-based oil and gas company. The Company
currently has 10,481,124 common shares issued and outstanding.
Its shares trade on the Alberta Stock Exchange under the symbol
"LEY."
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FOR FURTHER INFORMATION PLEASE CONTACT:
Loon Energy Inc.
Tom H. Field
President & CEO
(403) 264-8877
(403) 263-4247 (FAX)
The Alberta Stock Exchange has neither approved nor disapproved
the information contained herein.
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