SPOKANE, Wash., April 14, 2004 (PRIMEZONE) -- QMAC Energy Inc. (Pink Sheets:QMCE), a Nevada corporation with a gas development program and producing wells in Montana, today announces it plans to commence drilling on a new in-fill well in the Lake Frances gas field located in Pondera County, Montana on May 3, 2004. QMAC will pay 33% of the drilling costs to earn a 25% revenue interest in this well.
QMAC has a 25% interest in two other producing gas wells in the Lake Frances field that have proven reserve of 418 MMCF each. Engineering and Geological analysis shows that these wells have multiple pay zones including the 4th Bow Island Cretaceous reservoir.
There is gas gathering system in place and owned by QMAC's Operator, Altamont Oil & Gas Inc. This will allow the new well to be connected promptly if commercial quantities of gas are found. QMAC is confident that our association with Altamont will contribute to the ongoing fast tracking of our growth.
QMAC has entered into a Farm In Agreement with Altamont Oil & Gas and is ready to embark upon an additional 5 well in-fill drilling program within the Lake Frances field. This program will allow the operator to further evaluate the full potential of the reservoir. The new wells will employ air drilling techniques rather than standard fluid drilling methods, which risk damaging the reservoir as a consequence of drilling fluid plugging the porosity and permeability of the pay zone.
After payback of the QMAC's drilling and completion costs, QMAC will own a full 50% working interest in the new wells.
QMAC Energy, Inc. (Pink Sheets:QMCE) is a Nevada Corporation, engaged in the business of natural gas exploration, drilling and production. QMCE's current operations consist of a 25% interest in two operating gas wells in Montana's Lake Frances gas fields. QMAC expects the price of natural gas to remain high and demand to be strong. QMCE intends to aggressively add to its portfolio of operating gas wells throughout the Lake Frances gas well field. American Energy for Americans.
Altamont Oil & Gas Inc., our operator, is the largest gas producer in Pondera County, Montana, and has grown from 42nd largest amongst state-wide producers to within the top twenty over the last 3 months. Altamont is a fully integrated northern Montana-based, "hands-on" producer, which conducts all of its land acquisition, exploration, development, and production activities in-house. Altamont and its associated company own all of the gathering and production facilities in both the Frances Lake field and the nearby Williams field. Altamont is the largest leaseholder in Pondera County.
Safe Harbor Statement:
This news release may include forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the Company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements herein.
Contact Information Len Clarke -- Investor Relations (866) 488 0796 (604) 408 0702 email to investorrelations@qmacenergy.com Bob Miller -- CEO QMAC Energy, Inc. (509) 467-9832 www.qmacenergy.com