Admiral Bay Updates Mound Valley Project in the Cherokee Basin in Kansas
Mon Feb 11, 4:42 PM
ca.news.finance.yahoo.com
CENTENNIAL, COLORADO--(Marketwire - Feb. 11, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to announce that the inital results of the stimulation program at the Mound Valley project in the Cherokee Basin has shown almost immediate results. Eight wells were fraced in the Excello (Mulky) and Summit shales, between 400 to 450 feet, which resulted in production increasing from approximately 350 to 600 MCFGPD in the last four weeks. The dewatering process is still ongoing at a number of wells, so production is expected to continue to increase. The Company has scheduled six additional fracs this week in the same zones and plans to do three a week until the present wells at the project are all completed the Excello (Mulky) and Summit shales.
The main compressor at the project is capable of moving 1.1 MMCFGPD, so production can continue to increase without the Company adding additional equipment at this time. However, the Company is presently evaluating what additional compression it will need as the stimulation program moves forward and additional wells are added . Admiral Bay is also permitting ten additional drilling locations specifically located along the existing pipelines for easy connection to the pipeline and addition near term sales.
Shiloh and Devon Projects
Wells at the Shiloh and Devon projects are presently being evaluated for stimulating the Excello (Mulky) and Summit shales. At least three wells at Shiloh will be stimulated in these zones in the coming two weeks to test if they will react in a similar manner to the shales at the Mound Valley project.
Drilling at the Revloc Project
The Company is pleased to report that it has finished drilling the third well at its Revloc Project in the Appalachian Basin in Pennsylvania. The Company and its joint venture partner are encouraged by the results of this drilling program. Based on results to date, the Company intends to drill all seven wells that have been permitted at the project. An additional 2,442 contiguous acres have been leased by the partners.
Annual General Meeting Results
The Company is pleased to announce that all items were passed at the Company's recent Annual General Meeting. Directors elected for the ensuing year will be Bill Powers, Steve Tedesco, Michel Del Buono, Greg McMichael and Vern Swanson. Bill Powers was appointed Chairman of the Board, Steve Tedesco remains President & CEO and Robert Carington will remain the Company's CFO.
Bill Powers is the founder of Powers Asset Management, LLC, a significant shareholder of the Company, and is the portfolio manager for the Powers Energy Fund, LP. Mr. Powers is also a Director and Chairman of Petroglobe Inc., an emerging oil and gas company headquartered in Calgary, Alberta, Canada. Prior to founding Powers Asset Management, LLC, he conducted independent research covering the North American Energy and Petroleum sector. Mr. Powers holds a Bachelor of Science in Business Administration from Georgetown University, Washington, DC.
Michel Del Buono serves as a securities analyst for Scion Capital. Prior to joining Scion Capital in July 2004, he was an Engagement Manager at McKinsey & Co., San Francisco, in the Corporate Finance & Strategy practice. At McKinsey, Mr. Del Buono primarily worked with industrial and energy clients to implement investment strategies involving course-changing investments and merger and acquisition transactions and conducted due diligence for major private equity firms in connection with over $1 billion of leveraged buyout transactions. Michel received his Bachelor of Science degree in Systems Engineering with High Honors from the University of Virginia, and he holds three graduate degrees: a Master of Philosophy in Economics from the University of Cambridge, UK; a Master of Science degree in Engineering-Economic Systems from Stanford University; and a Ph.D. degree in Management Science & Engineering, also from Stanford University. Mr. Del Buono is also a Director of PetroGlobe Inc.
The Company also granted 250,000 stock options to Directors and Officers of the Company at a price of $0.21 per share, exercisable for a period of five years until February 8, 2012.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Curt Huber
Admiral Bay Resources Inc.
V.P. Corporate Development
(604) 628-5642 or Toll Free: 1-866-217-1620
(604) 408-9301 (FAX)
Email: info@admiralbay.com
Website: www.admiralbay.com |
