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ANTERRA PROVIDES DRILLING UPDATE
January 9, 2008
CALGARY, ALBERTA, January 9, 2008 – Anterra Energy Inc. (“Anterra” or the “Company”) today provides an update on recent drilling and completion activities. Exploration and development expenditures totaled $4.0 million for the fourth quarter of 2007 and the Company has now completed its $10 million 2007 CAPEX program and has met all of its flow through share commitments for 2007.
JUDY CREEK
The Anterra LSD 14-20-62-11W5M well at Judy Creek has been drilled and cased. The well encountered hydrocarbons in the Swan Hills reef at 2,700 metres, however logs indicate that water saturations are somewhat higher than anticipated. The well also encountered hydrocarbons in the Wabamun, Banff and Detrital formations. The well will be tested and completed in January following which future drilling locations and infrastructure requirements will be finalized. Anterra is the operator and holds a 100 % working interest in the LSD 14-20-62-11W5M well.
Anterra also advises that it has reached agreement with a flow through drilling fund to farm-in and invest $2.5 million in a joint venture to drill two additional Swan Hills reef wells on the Judy Creek property during the first quarter of 2008.
SAKWATAMAU
The Anterra LSD 06-32-60-15W5M well at Sakwatamau has been drilled and cased. Gas was encountered in the Edmonton, Belly River, Gething and Wilrich formations and oil is present in the Shunda formations. Due to the multiple formations capable of production, the well will be completed as a Shunda oil well and a second well will be drilled during the first quarter of 2008 to be completed for gas. The Company has a 20% working interest before payout in the LSD 06-32-60-15W5M well converting to a 60% working interest after payout. The Company will have a 60% working interest in the second well. Payout is expected to occur during the first half of 2008. Anterra owns and operates the oil and gas pipeline-connected infrastructure on the property.
McLEOD RIVER
The Anterra LSD 14-20-55-14W5M well at McLeod River has been drilled and cased. The well encountered natural gas in the Nisku, Swan Hills, Gilwood and Keg River formations and will be production tested during January. The well is the result of a farm-in agreement and Anterra has earned a 52.5% working interest before payout and 31.5% working interest after payout in the project. Anterra is operator and has access to gas gathering and processing infrastructure in the immediate area. Should the well produce sweet gas it will be placed on production within 60 days. For sour gas a four-mile gathering line will be needed and regulatory requirements may delay production for several months.
FRONTIER
The Company plans to drill one development well at LSD 07-7-4-20W3M and re-complete an abandoned well at LSD 06-7-4-20W3M in Frontier SW Saskatchewan, both wells targeting Upper Shaunavon oil production. Anterra is operator and will earn a 100 % working interest before payout and a 60 % working interest after payout in this project which will be completed by the end of January.
MATZIWIN
The Company plans to drill a development well in the Pekisko formation at LSD 04-15-23-14W4M at Matziwin in SE Alberta. Anterra is the operator and holds a 100 % working interest in the well which will be drilled and completed in January.
ABOUT ANTERRA ENERGY
Anterra Energy is an emerging energy company with a balanced portfolio of high impact exploration and lower risk exploitation projects. Complementing this strong exploration and development focus, the Company owns and operates oil and gas production and associated fee-based midstream facilities in western Canada. Anterra is a public Canadian company listed on the TSX Venture Exchange under the symbols AE.A and AE.B. More information about Anterra is available on the internet at www.anterraenergy.com
For further information, please contact:
Owen C. Pinnell
Chairman and Chief Executive Officer
Anterra Energy Inc.
Telephone: (403)215-2427
Facsimile: (403)261-6601
E-mail: pinnello@anterraenergy.com
FORWARD LOOKING INFORMATION
This news release contains forward looking information related to the planned drilling program, production and operating costs. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates in relation to reserves, production and expenses; health, safety and environmental risks; and the uncertainty of dealing with government and obtaining regulatory approvals). Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in the company's securities should not place undue reliance on these forward-looking statements.
In addition, the term BOE or BOE’s may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion ratio of 6 Mcf per one (1) BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
READER ADVISORY
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.
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