DENVER, Sept. 2 /PRNewswire/ -- Kestrel Energy, Inc. (Nasdaq: KEST), an oil and gas exploration and production company, today announced the Longhorn-1 well, which reached a total depth of 2,670 feet, has been plugged and abandoned as a dry hole. Kestrel has a 2.5% free carried interest in the prospect, which is located in permit WA-261-P in the Offshore Carnarvon Basin of Western Australia.
Apache Energy, operator of the project, reported that while wireline log data confirmed the absence of hydrocarbons, the data also provided useful information for analysis of the prognosed stratigraphic trap that forms the Longhorn Prospect. The information will help in evaluating remaining hydrocarbon potential within the permit.
Tim Hoops, Kestrel's president, said, "The dry hole results are of course disappointing. However, the information provided by the wireline log will be used to further evaluate the prospect and identify potential follow-up wells in permit WA-261-P."
As part of Kestrel's aggressive new exploratory drilling program, the Company plans to drill the Greer Prospect next week. According to seismic data, the Greer Prospect, located in California's San Joaquin Basin, has the potential to contain up to 20 million barrels of oil, if oil is present. The Greer-1 well will be drilled to approximately 9,570 feet to test a seismic amplitude anomaly that is similar to an anomaly observed in an oil and gas field 5 miles to the north. The nearby field has produced 21 million barrels of oil and 30 billion cubic feet of gas.
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
SU:
09/02/97 16:16 EDT prnewswire.com
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Bob,
Just in case you were wondering why this thing tanked some more, now you know.
IMO there is no rush to get into this at this point since they still have not spud the Greer yet (sheduled for next week) and that one will take at least a month to drill.
So wait until yo see the whites of their eyes and then pull the trigger. This stock is looking like it may go below 2 before it bottoms. |
