Petro Resources Corporation provides the following update on recent operations.
Louisiana
The East Chalkley field suffered no setbacks due to storm activity; however, was shut in during Hurricane Gustav coming ashore. The Pine Pasture #2 well was producing approximately 95 barrels of oil per day (gross) prior to the hurricane. A second field well is scheduled to be drilled in the fourth quarter of 2008. This well will be drilled from the same pad site as the Pine Pasture #2 in an effort to determine the extent of the reservoir. The Company has a 34% working interest in the field.
Permian Basin
The Cinco Terry field, located in the Permian Basin in West Texas, continues to demonstrate the attractiveness of an area with lower risk drilling, long lived quality production, and a large acreage position for drilling. Since the first well was drilled in this field in third quarter 2007, the Company has participated in a total of 46 wells, 41 of which have been successfully drilled, completed and turned to sales, 3 which encountered drilling problems and were abandoned prior to reaching the productive horizons, and 2 which were dry holes. The net daily production rate as of August 31, 2008 in the Cinco Terry Field was approximately 256 barrels of oil equivalent per day consisting of 72 barrels of oil per day and 1,106 Mmcf of natural gas per day. The Company anticipates the drilling of 15 additional wells this year in the Cinco Terry Field.
North Dakota
The Company has drilled two wells in the Newporte Prospect area. The first well, the E-M Emmel 10-3, reached total depth in August. The well has been completed, tested and stimulation techniques being evaluated in order to bring the well on line. The second well, the E-M High Flyer 5-9, also reached total depth in August, was determined to be non-commercial and was plugged. The Company has a 25% working interest in these two wells.
A horizontal well drilled in the East Flaxton Madison Unit, the EFMU # 23, is not producing in quantities as originally anticipated. The Company is considering several different stimulation methods in order to increase production from this well.
The Company is also continuing with secondary recovery re-pressurization work in several other producing fields in North Dakota and plans to drill new wells as these fields show response to re-pressurization efforts.