DENVER, Aug. 14 /PRNewswire/ -- Kestrel Energy, Inc. (Nasdaq: KEST), an oil and gas exploration and production company, today announced the Daisy Prospect well has been plugged and abandoned as a dry hole. The Daisy Prospect, located in California's San Joaquin Basin, was the first in a series of prospects the Company intends to drill as part of an aggressive new domestic and international exploratory program.
The well was drilled to a total depth of 3,706 feet. Electric wireline logs have been run and have confirmed the absence of hydrocarbons in the target Pliocene sands.
Kestrel, the operator of the well, owns a 50% interest in the prospect and will record expenses related to the well of approximately $75,000.
Timothy Hoops, president and CEO, said, "We are obviously disappointed with the results of our most recent exploratory effort. However, we intend to drill several additional prospects within our San Joaquin lease area, and will spud our next well in the Basin later this month."
Kestrel plans to drill the Greer Prospect, located approximately 66 miles to the north of the Daisy, in the last week of August. Interpretation of seismic data suggests the prospect has the potential to contain up to 20 million barrels of oil, if oil is present.
Prior to the Greer, Kestrel will participate in the Longhorn Prospect, located within the Offshore Carnarvon Basin of Western Australia. The well will be drilled to approximately 2,200 feet and will test a Cretaceous sandstone reservoir with the potential to contain up to 32 million barrels of oil, if oil is present. Kestrel has a 2.5% free carried interest in the project.
In May 1997, Kestrel raised $5 million in working capital to fund exploration and drilling of its assets in the San Joaquin Basin and commence development drilling of its existing producing properties.
Headquartered in Denver, Kestrel has producing properties in California, Kansas, Louisiana, New Mexico, Oklahoma, Texas and Wyoming.
Statements made in this news release that are not historical facts may be forward looking statements. Actual results may differ materially from those projected in any forward looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward looking information. In addition, while the Company's current plans are to drill the wells cited herein at the times and in the manner described, various factors, including but not limited to actual drilling results, equipment availability or breakage, financial or other problems of the operators or co-venturers, could change those plans. A description of the risks and uncertainties which are generally attendant to Kestrel Energy and its industry and other factors which could affect the Company's financial results are included in the Company's report to the Securities and Exchange Commission on Form 10-KSB.
SOURCE Kestrel Energy, Inc.
CO: Kestrel Energy, Inc.
ST: Colorado
IN: OIL
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Bob,
Now you can see why the stock dipped back to $3. Wondering if you
ever picked up some of this. There is a good chance you can get some
for under $3 this week, which is a tremendous buy IMO. They are sitting
on about $1.15 a share in cash, plus they have about that amount of
current reserves. So there is little "hype premium" built into the stock
at $3.
This next one, the Longhorn prospect is being operated by the hugely
successful Apache Corp., and is just 3 miles from Apache's 38 mmbo Stag
oil field offshore Austrailia.
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