WALLA WALLA, Wash., Oct. 8, 2004 (PRIMEZONE) -- Cadence Resources Corporation (OTCBB:CDNR) is pleased to update its current oil well drilling plans for the next four to five months. Cadence holds key oil projects in the States of Texas and Kansas.
In Texas, Cadence is set to drill three development step-out wells on its West Electra Lake acreage which is a 50/50 joint venture with the W.T. Waggoner Estate. The projects are located in Wilbarger County on the Waggoner Ranch. Cadence holds a 38% net revenue interest in these wells. The reserves developed by these three wells, if successful, are estimated by the Company to be about 120,000 barrels.
Cadence also holds an additional 3,800 acres on the Waggoner Ranch on which it has recently completed a 3-D seismic program to assess its potential. Cadence geologists have located four primary drilling targets which will test the Dyson, Upper and Lower Milham, Canyon and KMA formations. These targets, if drilled and completed successfully, are expected to generate an additional ten to fifteen "step-out" development wells. Cadence will hold a 38% net revenue interest in these wells, again in partnership with the W.T. Waggoner Estate. The reserves developed by each of these wells, if successful, are estimated by the Company to be about 40,000 barrels. Additionally, Cadence is negotiating with the landowner for leases on an additional 3,200 acres adjacent to the acreage mentioned above.
In Kansas, Cadence is currently near completion of shooting a 3-D seismic program on approximately 13,000 of its 26,000 acre land package located in Lane and Ness counties in the Anadarko Basin. This seismic shooting program, which will be completed in the next sixty days, is expected to identify four to six primary targets, each of which, if successful, is expected to result in an additional four to five "step-out" development wells.
The wells are projected to be drilled to depths of between 4000 and 4400 feet targeting the Lansing, Kansas City, Cherokee Sand and Mississippian formations. Similar historic wells drilled in the area had initial production rates of 40 to 120 barrels/day and developed average reserves of about 50,000 barrels of oil.
Certain statements contained herein may contain forward-looking statements that involve risks and uncertainties. Therefore, actual results may differ materially from those projected or implied. As a result, these forward-looking statements represent the Company's best judgment as of the date of this news release.