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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: VisionsOfSugarplums who wrote (14897)	3/22/2010 9:09:25 PM
From: 22jt	Respond to of 24921

Anderson Energy Announces 2009 Fourth Quarter and Year End Results siliconinvestor.com ...... - In the first quarter of 2010, three gross (2.25 net) Cardium horizontal oil wells were drilled. The Company's 100% working interest wells are in Garrington and Pembina, and encountered 850 meters and 1,300 meters of horizontal oil pay respectively. The Garrington well was recently completed and is now tied in for production. During spring breakup, the well will be produced intermittently through a temporary single well battery. The well is currently flowing without artificial lift at 200 barrels of light oil per day. The remaining Cardium horizontal wells will be completed after spring breakup. ...The Company has 85 gross (47 net) sections of Cardium prospective land. Based on a development drilling density of three wells per section, it could potentially drill 240 gross (141 net) Cardium horizontal wells. The Company is planning on operating the drilling of four gross (3.0 net) locations in the second and third quarters of 2010 at Garrington, Willesden Green, Pembina and Ferrier to allow the Company to further delineate areas for near term development. The Company's exposure in the Cardium oil horizontal play has the potential to significantly increase future production. ...In February 2010, the Company completed a net $29.8 million financing by issuing 21.9 million common shares at an issue price of $1.45 per share. This financing was put in place to expand the Company's Cardium oil horizontal drilling program. Total outstanding common shares, after giving effect to the February 2010 equity issue, are 172.4 million. The Company has credit facilities of $100 million with three Canadian banks. ...The Company assigned $7,100 per hectare to its Cardium horizontal prospective lands in the net asset value table, which is an average of the last three Cardium Crown lands sales. Company engineers have estimated the potential net present value of a Cardium well to be $3.3 million, using a $75 per barrel Canadian oil price and a 10% pretax discount rate. The Company has an inventory of 141 net Cardium wells based on a three well per section development. ...The Company believes it has an excellent future drilling inventory, including several years of vertical development drilling locations, particularly in the Edmonton Sands and West Pembina Rock Creek plays. The Company has also identified high impact multistage frac horizontal drilling opportunities targeting Cardium light oil and Whitemud Sands gas in Central Alberta. ...The equity financings completed during the second quarter of 2009 and the first quarter of 2010, along with the Company's available bank lines, provide the Company with the financial flexibility to take advantage of the opportunities provided by the farm-in and expand its drilling program on its Cardium lands.