RICHMOND, Va., Aug. 18, 2005 (PRIMEZONE) -- Wayne Waters, on behalf of the Board of Directors, reports that the high impact Alberta natural gas down-spacing horizontal well is proceeding.
As previously announced, the Company (TSX-V:RUN) had elected to participate as to a 30% gross interest in the first Section of its Pincher Creek Gas Field Leasehold., with Choice Resources (TSX-V:CZE) of Calgary, Alberta as the operator. After payout, the interest converts to a 15% net interest.
The first well in the program at 1-5-3 of 28 is a horizontal well currently drilling at 2,212 metres, with Precision Drilling Rig No. 645. Total well depth is 4,579 metres, including the horizontal leg.
The well is a down-spacing exploitation well, with a potential resource base between 30 billion cubic feet and 80 billion cubic feet. Possible production rates are targeted to be between 10 and 35 Mmcf/day plus btu-rich liquid condensates.
A comparable well located just north at 6 -19 has produced almost 75 billion cubic feet to date and continues at 1.2 Mmcf approx. per day.
All equipment, separators, and facilities are in place and as this is a down-spacing well, the gas pipeline is currently operational and within 50 metres of the drill rig. Natural gas is currently $9.68 per mbtu spot price, and slightly lower for September delivery.
The Pincher Creek Gas Field Leasehold Option covers 27 additional sections and encompasses numerous development and exploration targets, in addition to the existing Section being earned by participating in the down-spacing exploitation well. Further information on this Project and the Company' other projects are available at the Company's website: www.foxgold.ca
Private Placement Completed
The Company has completed its recently announced non-brokered private placement to raise $2,175,000. All securities issued under the private placement are restricted until December 3, 2005.
On behalf of the Board of Directors, Wayne Waters, Director.
The Company relies on legislation applicable to forward looking statements. We seek safe harbour.