ÿKESTREL ENERGY COMMENCES DRILLING OF SYLVESTER PROSPECT IN CALIFORNIA'S
SAN JOAQUIN BASIN
DENVER, Colorado --Kestrel Energy, Inc. (Nasdaq SmallCap-KEST), an oil
and gas exploration and production company, today announced it has
commenced drilling the Sylvester Prospect, located 30 miles west of
Bakersfield in California's San Joaquin Basin.
The primary objective of the well is the Hill Zone, located at a depth
of 3,087 feet in the Mya member of the Pliocene San Joaquin Formation.
The well also will test multiple targets below the Hill Zone, including
the Atwell Island Sands and the Mulinia Sands. The total anticipated
depth of the well is 4,800 feet.
According to Kestrel's interpretation of seismic data, the prospect has
the potential to contain up 6.2 billion cubic feet of gas, if gas is
present. Kestrel management said it expects the well to reach total
depth in approximately six days. Kestrel is the operator on the well and
has a 50% working interest in the project. The Company anticipates it
will cost approximately $100,000 net to Kestrel to drill the well.
Kestrel's next exploratory well, the Dewey Prospect, is also located in
the San Joaquin Basin and is scheduled to drill in May. For additional
information on Kestrel and its drilling schedule, visit the Company's
home page on the world wide web at kestrelenergy.com.
Headquartered in Denver, Kestrel has producing properties in California,
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 or estimated by any forward looking information.
In addition, while the Company's current plans are to drill the wells or
develop the properties 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-K. ÿ
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Now you see why the stock has come back to life. It is still undervalued, below book value.
This well alone could pop the stock up $.50, and we still have the Dewey to look forward to later this month, then another massive Australian well (the Melanie) next month. |
