KRS.V: sounds rather good....
cheers - Laurin
Press Release
Source: Kroes Energy Inc.
Kroes Energy announces new production and first quarter results
Tuesday May 31, 11:15 am ET
CALGARY, May 31 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS - News) announced today that development well No. 305 was placed on production in late May at approximately 200 barrels per day (90 barrels per day net to Kroes). In addition, the first follow-up well No. 301 has commenced drilling and is currently at 330 meters. The new well will be deviated to a bottom hole location 400 meters to the north of No. 305 where both the P1 - P2 zone and the deeper K1 zone will be penetrated. After completion of the vertical hole, the Kashtan joint venture, in which Kroes has a 45% interest, is considering kicking off from this wellbore and drilling a 250-meter horizontal leg in the main P1 - P2 producing sands. If successful, the well would have production from the K1 zone as well as significantly enhanced production from the P1 - P2 zone. Three additional follow-up wells will be drilled successively.
Furthermore, development well No. 302, which was completed in March, has now been placed on production at approximately 20 barrels per day.
Kroes also announced that net earnings for the first quarter of 2005 totaled $102,681 compared with $315,927 earned in the first quarter of 2004. Cash flow from operations totaled $149,738 compared to the $392,029 generated in the first quarter last year. Although production declined in the first quarter, most of the drop in earnings and cash flow was caused by crude oil inventory fluctuations in the Ukrainian operations where production is stored in tanks and then sold in 1,000-tonne (7,700 barrel) batches. In the first quarter of 2004, sales included all production plus inventory from December 2004 whereas at March 31, 2005 sales amounted to 57% of production and inventory rose to 11,280 barrels, resulting in a significant reduction in first quarter revenue.
In Ukraine, crude oil production for the first quarter of 2005 averaged 203 barrels per day compared with 255 barrels per day in the first quarter of 2004. The decline was the result of a number of producing wells being shut in due to mechanical or maintenance problems. Most of the suspended wells have now been put back on production. The combined impact of sale of inventory, production from new wells and recent workovers will be reflected in significantly higher second half production and revenue.
In accordance with its view that there are many attractive opportunities for excellent oil and gas projects in Ukraine, Kroes has recently signed confidentiality agreements with three parties that have oil or gas licenses and are looking for partners. Kroes President Fred Callaway said: "Kroes is dedicated to increasing its presence and production base in Ukraine. The potential addition of new projects, together with the pending acquisition of the remaining 55% of the Kashtan joint venture, offers the Company tremendous growth prospects." Mr. Callaway also noted that the recent entry into the oil and gas sector in Ukraine by Shell Exploration is further evidence of the prospectivity of Ukraine.
Kroes Energy Inc.'s first quarter report dated March 31, 2005 has been filed on SEDAR (www.sedar.com). |
