Energy & Engine Technology Corporation Announces Update on Pipeline Construction
PLANO, Texas, Feb 4, 2002 /PRNewswire-FirstCall via COMTEX/ -- Energy & Engine Technology Corporation (OTC Bulletin Board: EENT chart, msgs) announced today that 36,500 feet of a total of 42,000 feet of its Southern States Gas Gathering System's trunk line extension has been completed. This extension brings the total length of the gathering system to 71 miles. The pipeline extension has been under construction since November 15, 2001 and the remaining 5,500 feet should be completed in early February 2002. Permits have been approved by the US Army Corps of Engineers and the Louisiana Department of Transportation and Development, as well as by the local Levy Board for this project.
While this construction of the pipeline extension has been underway, a parallel effort has been ongoing to prepare for activation of already connected leases with, among other things, pressure testing of lines, vacuum compressor set up and installation of meters.
Once the main trunk line extension is completed, the pipeline will begin gathering and transporting natural gas from 15 leases (over 300 wells). These wells have been previously connected to the pipeline in anticipation of the successful completion and connection to our new sales point. The aggregate production from these wells is expected to be in the 300 to 500 thousand cubic feet of gas per day (MCF/D) range immediately.
These previously connected wells in the field have historically vented approximately two to five MCF/D of gas per well to the atmosphere. There are over 10,000 of these older wells in the Caddo Pine Island Field. The company pipeline's current configuration is capable of reaching over 3,000 of these wells. The company's goal is to have 3,000 of these wells producing into its pipeline in five years. If the company achieves its goal, the pipeline would gather and market over nine million cubic feet of gas per day (MMCF/D) from the 3,000 wells assuming an average of three MCF/D per well. This total does not include gas production from new wells the company and/or other operators in the field will be drilling over this time period. EENT announced on January 29, 2002, a two well per month drilling program for a total of 22 new wells in 2002.
The company anticipates that at the end of 12 months, gas sales will be over two million cubic feet of gas per day (MMCF/D). The gathering system earns 30% of the gas plus 100% of the salable liquids, which can be stripped from the gas. BTU content is the indicator of the volume of liquids which gas will yield. Natural gas samples taken in the field last week and tested by an independent laboratory indicate BTU content in the 1150 range. The benchmark for gas delivered to the purchaser is 950, which indicates significant liquids volume, which will be sold with proceeds going to the company.
Willard G. McAndrew III, President and CEO
For Investor relations, please contact:
Mark Whittaker
704-987-0770
mark@eetcorp.net
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