WALLA WALLA, Wash., March 22, 2005 (PRIMEZONE) -- Cadence Resources Corporation (OTCBB:CDNR) is pleased to update its progress on its oil projects in the states of Texas and Kansas.
In December, 2004, Cadence drilled and successfully completed two oil wells on the Waggoner Ranch in Wilbarger County, Texas. These wells are now producing at rates of about fifteen barrels of oil per day. Also, one of the wells is producing from the shallow Saddle Creek formation at 1,750 feet and thus confirms the horizon as a productive formation. Cadence has identified from existing 3-D seismic and historic well data an estimated twenty additional wells to be drilled to the shallow Saddle Creek formation.
The first of two rigs are now on the Waggoner Ranch to drill four additional wells during March and April of 2005. Cadence owns 50% working interest in the completed wells and has 100% working interest in one of the four new wells to be drilled and 50% working interest in the three other wells.
In Kansas, Cadence has completed its assessment of its 3-D seismic program on the northern 13,000 acres of its 27,000 acre land package located in Lane and Ness counties in the oil portion of the Anadarko Basin. The Company has arranged for a drilling rig to begin two new development wells on this acreage beginning on April 3rd.
The wells are projected to be drilled to a depth of 4,600 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 50,000 barrels of oil.
From the existing seismic analysis and from historic well data, Cadence consulting geologists have identified five target areas on the northern 13,000 acre package, each of which is expected to host four to six new oil wells and develop reserves of 200,000 to 300,000 barrels of oil per area.
Cadence consulting geologists who have conducted both the Kansas and Texas seismic programs include Lucius Geer, former Division Head Geophysics-Western U.S. and Alaska for Unocal, and Olan Adams, former Area Geophysicist-North America for Conoco.
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.