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Loon Energy Inc -
6mo results
Loon Energy Inc
LEY
Shares issued 9,731,384
1998-09-15 close $0.3
Tuesday Sep 22 1998
Mr. Thomas Field reviews the company
During the second quarter of 1998 the company acquired an oil property at Grand Forks for base cash flow and is pursuing a gas-oriented drilling program for growth. Loon is involved three gas projects at Strachan, Carvel and Warwick.
Activities are planned on all three projects during the remainder of 1998. Loon realized 59 bbl/d average production in Grand Forks and has identified several infill drilling opportunities on the property which will be pursued when economic conditions warrant.
Strachan is a high impact gas project that will be more fully evaluated in the second half of 1998. In the second quarter, Loon participated in the initial completion and flow testing of the Strachan 3-22 well. Further completion operations and flow testing are currently under way and accurate deliverability and reserves will be determined following these operations. Plans for additional drilling
on the 14.5 sections of farm-in lands will be finalized by the end of the third quarter.
Internally generated prospects may provide significant cash flow additions later this year. The company has commenced preliminary work to drill a well at Carvel (33.34 per cent Loon) just west of Edmonton. If successful, this well is projected to add 1.0 mmcf/d gas production net to Loon plus associated gas liquids, for a total of 120 boe/d. At warwick (50 per cent Loon) in East Central Alberta, Loon is planning to drill a well targeting gas in the fourth quarter. This well is also
expected to add net gas production of 1.0 mmcf/d to Loon. Loon will operate both the Carvel and Warwick drilling prospects.
In addition to the three gas projects, Loon has an oil project at Dina (50 per cent Loon) in East Central Alberta, a low risk play identified on seismic shot by Loon in February 1998. Due to prioritization of capital in the current oil price environment, Loon plans to farm out this prospect to have a test well drilled at no
cost to the company.
In June the company completed a private placement financing, raising $593,125. A total of 927,500 class C flow through special warrants and 166,0000 class D special warrants was issued at 55 cents and 50 cents, respectively.
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