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Fidelis Updates 'Archer-Whitney #1' Production Thursday June 2, 9:00 am ET
TUCSON, Ariz.--(BUSINESS WIRE)--June 2, 2005--Fidelis Energy Inc. (OTCBB: FDEI - News) today announced the April and May 2005 production totals for the "Archer-Whitney #1" well and updated operations at North Franklin. Since full production began on March 23 to the most recent data received by the company on May 31, the "Archer-Whitney #1" well has produced 98.5 Mmcf gas in 70 days at an average rate of 1.41 Mmcf per day. Total production to date has generated $591,000 to the partners. Production by month has been 13.5 Mmcf in nine days of March, 41.2 Mmcf for April and 43.8 Mmcf for May.
The operator of the project had intended to increase the flow rate to 2.5-3.0 Mmcf per day, but has maintained a choked-back gas flow since the onset of production, only increasing the gas flow in small increments. The latest project update at the well is that, under advice from the operator, the gas flow will remain choked back to between 1.75 Mmcf and 2.0 Mmcf per day until the second well is drilled and completed. As reported earlier, Fidelis anticipates a spud date to be announced shortly in June. With more information provided from the second well, this will provide important geological reservoir data and confidence that detriment will not be done to the reservoir prior to opening up the well to its fullest capacity. North Franklin is a new reservoir discovery and time will be required to evaluate the full potential of the gas field. Fidelis Energy expects that, in time, production rates will meet original expectations of 4-5 Mmcf per day.
The well is currently producing between 1.5-1.6 Mmcf per day from the latest numbers received by Fidelis. The operator's advice to the company is to be prudently cautious in these early production days. We have been advised not to be overzealous in rapidly increasing the flow rates to maintain the integrity of the gas-charged sand to prevent the unlikely possibility of coning the reservoir and potentially drawing in excess condensate. Fidelis intends to announce gas production totals and rates on a monthly basis, or more frequently when warranted.
About Fidelis Energy Inc.
Based in Tucson, Ariz., Fidelis Energy is an oil and gas company dedicated to solving North America's complex energy problems. Fidelis Energy identifies, acquires and develops working interest percentages in smaller, underdeveloped oil and gas projects in California, Canada, and other promising locales that do not meet the requirements of larger producers and developers. Through the use of modern development techniques such as horizontal drilling and 3-D seismic, the company enhances production from underdeveloped and underutilized projects, as it pursues oil and gas production throughout North America.
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