Hi Yogi,
Here's an OT post for Robert:
Double Eagle Madden Project Update
CASPER, Wyo., Sept. 20 /PRNewswire/ -- At Madden Field, Double Eagle Petroleum and Mining Co. (Nasdaq: DBLE, DBLEW) currently operates two producing gas wells and a well awaiting completion. The Company also owns a 21.66 to 58.33 percent working interest in 10 to 35 potential development locations on 1,411 gross acres within the unit. Further development is planned during the next twelve months.
The Madden Field: In general, the Madden Field is 100 miles west of Casper in Central Wyoming and produced over 224 million cubic feet of gas per day from seven different formations at depths of 3,000 to 25,000 feet in July 2000. At this rate, the field will produce over 80 billion cubic feet of gas per year, which at the current sales price of approximately $4 per mcf, equates to 320 million dollars in annual gas sales. Burlington Resources (NYSE: BR), the primary operator in the field, plans to increase the capacity of Lost Cabin gas plant to process the deep, sour gas from 130 million to 310 million cubic feet per day for start-up in 2002. In August 2000, a new pipeline capable of moving at least 250 million cubic feet of gas per day was completed by Burlington and Enron. The drilling plans are to develop the sweet gas in the shallow Lower Fort Union pay sands at approximately 6,000 feet and the sour gas from the deep Madison pay intervals at approximately 25,000 feet. In 1997, the Big Horn #4-36 well, in which we have no interest, was completed in the Madden Field with a capable open flow of over 200 million cubic feet of gas per day from the Madison Formation at a depth of over 24,000 feet. As a result, estimates of proved reserves for the Madison reservoir exceeded one trillion cubic feet. In 1999, Burlington drilled the Big Horn #5-6 well, in which we have no interest. This well was completed with a calculated open flow of 162 million cubic feet per day from the Madison at a depth of over 24,000 feet. Reserve estimates were increased to two trillion cubic feet. Burlington is currently drilling the Big Horn #6-27 to test the Madison adjacent to Double Eagle's leasehold and estimates that, if this well is successful, reserves could be as high as 7 trillion cubic feet. The Big Horn #6-27, in which we have no interest, was at a depth of 21,300 feet as of September 1, 2000 and should reach the Madison within the next 60 days. From analysis of the 3-D seismic survey, some of Double Eagle's leasehold interest appears to be structurally even with the Big Horn #6-27 well and would be classified as containing estimated proved non-producing reserves in the Madison, if this well is successful. Burlington has stated that based on the results of the Big Horn #6-27, they may add a second rig to further accelerate development of the field. Each of these deep wells is expected to cost approximately 30 million dollars to drill and complete.
The less expensive development program for the much shallower sands is proceeding rapidly on and around the Double Eagle leasehold. Double Eagle has drilled two wells and re-completed a third in the shallower pay sands. These wells appear to have multiple pays from 3,000 to 14,000 feet in depth. The Allen #1 well is currently producing 800 mcf per day from 11,700 feet. The Leonard #1-24 has tested in excess of 2,000 mcf per day from 13,300 feet and should begin gas sales in September 2000. The Lloyd #1-26 well has been drilled and is awaiting completion in a potential pay sand at 6,300 feet during September 2000. An additional 10 to 35 development locations are available on the Double Eagle leasehold to develop the pay at 6,300 feet. Double Eagle plans to operate these wells and has 20 to 40 percent working interest in each of these locations. These shallow wells are expected to cost less than $750,000, average net of $250,000 to Double Eagle, to drill and complete. Burlington and Double Eagle are experimenting with drilling and completion techniques to more effectively exploit this shallow pay. Some of the older wells have recovered in excess of 40 billion cubic feet from this shallow reservoir and represent an extremely economic target.
Double Eagle President Stephen H. Hollis stated: "We believe that the development of the shallow and deep horizons at Madden will significantly affect our production and estimated proved reserves."
Visit the Company's web page at: www.dble.org
This press release may contain projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any such projections or statements reflect the Company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ materially from those projected, such as decreases in oil and gas prices and/or unexpected decreases in oil and gas production, is included in the Company's periodic reports filed with the Securities and Exchange Commission.
Founded in 1972, Double Eagle Petroleum and Mining Co. explores for, develops, and sells crude oil and natural gas. The Company's current areas of exploration and development include the Moxa Arch, Powder River Basin, Washakie Basin, and Wind River Basin in Wyoming.
SOURCE Double Eagle Petroleum and Mining Co.
CO: Double Eagle Petroleum and Mining Co.; Burlington Resources
ST: Wyoming
IN: MNG OIL
SU:
09/20/2000 06:00 EDT prnewswire.com |
