VANCOUVER, British Columbia, Aug 15, 2001 (PRIMEZONE) -- Soho Resources Corp. (CDNX:SOH) (http://www.sohoresources.ca) is pleased to report that all three wells drilled and completed on the Quest Gas Project in early 2001, continue to produce economic quantities of natural gas. The gas is being delivered to market, at spot Henry Hub pricing, through an existing pipeline that bisects the property.
July average daily production for the Quest No. 16-21, Quest No. 22-1 and Quest No. 6-28 wells was 709 mcfd, 440 mcfd, and 115 mcfd, respectively. Cumulatively, the three wells produced at an average daily rate of 1,264 mcfd (net 185 mcfd). Production decline rates from the wells have flattened and stabilized, typical of other gas wells in the Uintah Basin. Soho Resources, indirectly through Huntford Resources Corp., controls a 21.4 percent interest in well No. 16-21, a 3.0 percent interest in well No. 1-22, and a 17.5 percent interest in well No. 6-28.
Options and Warrant Exercised
During June and July shareholders of Soho exercised a total of 1,812,307 warrants and 613,000 options for net proceeds to Soho of $647,000. The proceeds are being directed towards accrued costs of the Quest Project, loan repayment and general operating capital.
About the Quest Gas Project
The Quest Gas Project is located in the Uintah Basin of northeastern Utah -- a prolific gas-producing region. The Quest Project is a basin-centered gas play, with 177 potential well sites using 80 acre well spacing, initially targeting shallow gas zones -- less than 1,000 meters (3,300 feet) -- in the Wasatch Formation. The Quest Project also has deeper gas zones in the Mancos B, Niobrara, and Dakota Formations, which will be evaluated later in the Project's development. Historically, nearby wells targeting these same formations throughout the Uintah Basin have produced ultimate recoveries of 0.2 to 6.0 BCF per well.
About Soho Resources Corp.
Soho Resources is an oil and gas exploration company actively exploring prospects in the Williston and Uintah Basins in the United States, and in the Michigan Basin of Canada. Both directly and indirectly, Soho holds varying interests in four projects, including Quest project in Utah (3% to 21.4% interest), the 80,000-acre Sundance project in North Dakota (37.5% interest), the Phoenix Project in southern Ontario (100% interest) and the Wolverine Prospect in North Dakota (100% interest).
Note: The Canadian Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.