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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: Al Collard who wrote (1936)	4/19/2001 8:06:00 AM
From: The Osprey	Respond to of 11802

News on my pick Al.... Osprey Energy Ltd - News Release Osprey's Crosby 36A well triples daily production Osprey Energy Ltd OEL Shares issued 7,054,288 2001-04-18 close $1.11 Thursday Apr 19 2001 News Release Mr. R. Gary Malone reports Osprey Energy continues successful implementation of its corporate strategy for building shareholder value. The Crosby 36A well located on one of Osprey's properties in Louisiana, which has more than tripled the company's daily production to between 1,100 and 1,200 barrels of oil equivalent per day, continues to exceed expectations. Daily production has averaged more than 700 barrels of oil and two million cubic feet of gas per day at an average price in excess of $27 (U.S.) per barrel and $5 (U.S.) per thousand cubic feet of gas. The remedial work for the 19,800-foot well went very smoothly, in what the operator called a "textbook case," resulting in considerable cost savings to the $1-million (U.S.) budget for the project. Osprey is receiving 75 per cent of all Cotton Valley revenues until payout and 50 per cent after payout. A geologic and economic evaluation last October by Keljor LLC, a Houston petroleum geological firm, assessed the present value of the Cotton Valley reserves at $29,515,345 (U.S.) and a present value 10-per-cent discounted value of $15,475,549 (U.S). Additionally, there is an extensive field infrastructure of wellheads, pipelines and associated equipment constructed in 1998 and 1999 to produce and deliver the oil and gas from these deep high-pressure wells to the commercial gathering systems. The increased cash flow from the Crosby 36A will accelerate implementation of the corporate strategy to enhance production on producing reserves, develop new reservoirs on existing properties and acquire additional properties with significant proven reserves. Osprey has 12 wells, including the Crosby 36A, in the Cotton Valley project. Extensive geophysical and engineering work is currently under way to bring five other wells in the field into production and to develop unproduced reservoirs identified by 3-D seismic. Unproduced reservoirs include potential new zones on the two Riceland wells, which had previously been deemed as a plugging liability. Two reserve-rich wells, the Crosby 25 and Willamette, should make major contributions to the company's growing production, cash flow and profit. Work is also planned to improve output on the Pool well and the Anardarko Petroleum operated TK Giddens well. The new infusion of cash flow will also be used for remedial work in the Bayou Choctaw field where four of the company's 10 wells are now producing. Wellbores and 3-D seismic have indicated the presence of potentially significant new reservoirs in this field. Osprey has a 60-per-cent working interest, but receives 100 per cent of revenue until payout. Remedial work is also planned for the two wells in the Livingston field, which is expected to expand production from 30 to 40 barrels of oil to 200 to 300 barrels of oil per day. Osprey holds a 30-per-cent working interest in this field. The company has been evaluating other properties and will continue to aggressively pursue new opportunities for the acquisition of properties with proven reserves and developmental potential. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2001 Canjex Publishing Ltd. canada-stockwatch.com