BRIDGEWATER, NS, Nov. 20 /CNW/ - Osprey Energy Ltd. (OEL), the "Company",
wishes to announce it is building a pipeline to tie-in the Crosby 36A Well to
the Crosby 25 Well in its Northern Louisiana property which it expects to
complete before month's end. The Crosby 25 has the infrastructure to process
production from both Wells and is tied-in to the main commercial pipeline. An
independent Geological and Economic Evaluation, dated October 1, 2000, states
the Proved Reserves for the 36A Well to be in excess of 7.8 Billion cubic feet
of gas (BCFG) and over 270,000 barrels of oil (BO). The Proven Reserves for
the 25 Well are over 3.3 BCFG and over 226,000 BO.
The author of the evaluation is Patrick Donais of Houston, Texas, a
Certified, Registered Petroleum Geologist and a Certified Earth Scientist with
the Society of Independent Professional Earth Scientists.
This property, which exceeds 20,000 acres in four parishes (counties),
has nine Austin Chalk Wells, each with a total depth in excess of 18,000 feet,
three Cotton Valley Wells, each with a total depth in excess of 14,000 feet,
and one salt water disposal well. The prior owner, Union Pacific Resources,
drilled, equipped, and tied in eleven of the Wells to existing pipelines in
1997 and 1998.
Mr. Donais states the proved reserves in this Northern Louisiana
property, net to Osprey's 50% interest, have a before tax present value in
excess of the following: $29,000,000 USD, $15,000,000 PV10%, $12,000,000
PV15%, and $10,000,000 PV20%. These figures were compiled with oil valued at
$30.84 USD per barrel (BO) and natural gas at $5.19 per thousand cubic feet
(MCF). This field produces Oil with gravity over 46.0 and a high BTU content
for the gas, for which it receives a 20% premium.
Five of the Austin Chalk Wells, the Crowell 3 (2,979BO), Crowell 7
(1204BO), Bailey 32(3,046BO), Crosby 24(1168BO), and Temple 16 (987BO)
produced a total of 9.384BO until the end of October, which sold at over
$33.00 USD per barrel. Production of Gas from these five wells plus two Cotton
Valley Gas Wells will be reported prior to month's end.
In total, the Company is currently generating positive cash flow from
three producing properties in Louisiana and three producing properties in
Alberta.
ON BEHALF OF THE BOARD OF DIRECTORS OF
OSPREY ENERGY LTD.
"R. Gary Malone"
President
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