Admiral Bay Reports Operational Update and Record Production for November 2008
December 03 2008 - 11:38AM
Marketwired
Admiral Bay Resources Inc. (TSX VENTURE: ADB) Admiral Bay Resources
Inc. ("Admiral Bay" or the "Company") is pleased to report record
production for the month of November 2008. Shiloh gross sales
increased to approximately 2.2 MMCFGPD, Mound Valley increased to
approximately 1.0 MMCFGPD and Devon production which includes the
Company's share of third party gas is at approximately 0.3 MMCFGPD.
The Company has 12 wells ready for completion and 10 wells
permitted for drilling that it expects will increase its gross
sales to 4.0 MMCFPD during January weather permitting.
At the Shiloh Project, two new electric main compressors have
been installed and sales have increased due to significantly lower
fuel usage, lower line pressures and improved run times on the
wells from improved operations. The Company is in the process of
negotiating the processing contracts for third party gas which will
increase its sales and allow it access for drilling development
wells.
At the Mound Valley Project the Company recently drilled 12
wells with very encouraging results. Three of these wells have been
completed and are on production and the remaining nine will be
connected to the main gathering system during December. The Company
recently upgraded its gathering system and will continue to develop
the Mound Valley Project area once all wells are online.
At the Devon Project the Company is in the process of staking 10
wells which will test its new drilling methodology. Also being
staked is a salt water disposal well that is awaiting approval by
the Kansas Corporation Commission. The Company feels the new method
for drilling and completing coal bed methane wells will allow
better production rates at a significantly lower cost. The Company
is not revealing the method at this time for competitive reasons.
The new wells, subject to Kansas Corporation Commission approval,
will be drilled in January, 2009. The Company is completing three
wells by conventional methods that were bought in the recent
purchase of the Ft. Scott Project. The Company has also added
additional third party gas to the Bourbon County Pipeline system
from Missouri.
The Revloc Project in Pennsylvania continues to dewater. The
three wells recently completed are making gas. The Weiland 1 is
presently between 15 - 20 MCFGPD and continues to slowly incline.
The Williams 1 is presently at 4 MCFGPGD. The McWhorter #2 is
presently at 2 MCFGPD. Dewatering is expected to take 10 to 24
months and will require additional wells to maximize gas
production. The Company and its partner are close to acquiring the
entire right of way needed to lay a 12 mile long pipeline. The tap
and compressor site have been chosen and development will continue
in 2009.
President and CEO Steven Tedesco commented "Activity continues
in all of our project areas as the Company continues to have
success and increase production and lower costs. With the success
of our 2008 drilling program and the expansion of our gathering
system the Company has greatly increased its inventory of low risk
drilling locations. This in turn will allow us to continue to post
record production growth in 2009, further lower our operating costs
and add to our reserve base."
Admiral Bay Resources Inc. (www.admiralbay.com) is an emerging
unconventional gas production company focused on the development of
projects in the Cherokee Basin in southeast Kansas and the
Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX
Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned
that any such statements are not guarantees of future performance
and that actual developments or results may vary materially from
those in these "forward-looking statements."
The TSX Venture Exchange does not accept responsibility for the
adequacy of this release.
Contacts: Admiral Bay Resources Inc. Steven Tedesco President
& C.E.O. (303) 350-1255 (303) 617-8956 (FAX) Email:
stedesco@admiralbay.com Admiral Bay Resources Inc. Robert Carington
CFO (303) 350-1255 (303) 708-1861 (FAX) Email:
rcarington@admiralbay.com Website: www.admiralbay.com
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