Shale Gas and CBM Operations Update
09:00 EDT Tuesday, October 09, 2007
globeinvestor.com
SLV tsxventure
CALGARY, Oct. 9 /CNW/ -
Alberta Shale Gas Prospect
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Stealth Ventures Ltd. (Stealth) is pleased to announce that it has finished drilling operations and commenced completion, testing and tie-in operations for a twenty well program on its Alberta shale gas project. Prior to the current program, nine wells had been tied-in on the play with initial production rates ranging from up to 150 mcf/ day/ well and averaging just under 100 mcf/ day/ well. Capital costs for the current program have been reduced from previous operations by an estimated 42% for drilling, 39% for completions and 25% for tie-ins. This is due in part to pricing pressure caused by an available supply of new equipment and services in the sector. The twenty well program also allowed for planned 'economies of scale' that will enable Stealth to evaluate and plan full development of the project.
The wells target biogenic natural gas from multiple horizons within the organic rich Colorado Shale Group. Current spacing unit holding rules for the area allow licensing for up to four wells per section at the shallow depths of these wells (500 metres or less). To date, Stealth has been drilling one well per section, successfully testing the geological concept, testing different completion technologies and earning land. Preliminary analysis indicates higher density spacing of more than four wells per section may ultimately be required to maximize recovery from these tight rock formations. Management does believe that as the project progresses to the development stage, better target identification and technology application could lead to increased productivity and drainage per well.
Stealth currently has approximately 112 sections, 72,000 gross acres, of mineral rights in the prospect area with approximately a 67% average working interest. Stealth also has options to earn an additional 13 sections by drilling. Stealth has continued to concentrate a large percentage of its budget on the growth of this very promising project.
Nova Scotia CBM Update
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Stealth is in the final stages of procurement for the Cumberland basin horizontal well frac program which is tentatively scheduled for mid-November pending equipment availability windows.
Stealth Ventures Ltd. is a Calgary-based junior oil and gas company whose expertise and focus is on the "unconventional" gas reserves from CBM, shale gas and tight gas sand reservoirs.
STEALTH VENTURES LTD.
"W. Robert Bell"
Per: W. ROBERT BELL
Chief Executive Officer
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%SEDAR: 00008195E
For further information: W. Robert Bell, CEO, Mark J. Roth, CFO, Stealth Ventures Ltd., Tel.: (403) 514-9998, Fax: (403) 514-9995, Emails: investorrelations@stealthventures.ca; Investor Relations, First Canadian Capital Corp, Tel.: (416) 742-5600, Tel.: (866) 580-8891, Email: request@firstcanadiancapital.com |
