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Bringing this over. Lil's DD post from Micropenny: Good job as usual Lil
Irwin Energy, Inc. (OTC: IWNN.PK), is an independent oil and gas producer with North American operations. The Company seeks out low risk opportunities to develop positive cash flow from proven and probable oil and gas plays.
With the participation of Energy 51 as operators, Irwin Energy's projects boast a tier one team of oil veterans who have a combined 100 years+ experience with over 1000 wells drilled and a drill success ratio over 72%. As operators, these veterans have a vested interest in the Company's projects. In fact, their participation is the reason why Irwin Energy is able to gain access to Sylvan Lake, Alberta, an area of interest normally only populated by majors like Gulf Oil, Talisman Energy and Shell Oil (see details of this remarkable story in Our Projects section). Sylvan Lake is very near Shell's recent major discovery of an 800,000,000 cubic foot gas reserve.
Looking further down the road, Irwin Energy also aims to identify larger projects that can be developed as 'farm in', or joint venture plays with established industry partners. As Irwin Energy is focused on the energy sector as a whole, it is also searching for opportunities related to alternative and sustainable energy projects to round out its project mix and bolster long term growth.
With the high price of petroleum and solid long term prospects for the industry, we are confident significant opportunity exists in this sector for the long term and we as a team will continue to identify and develop viable projects that will translate into substantial value for our shareholders.
NEWEST PROJECTS!
Westlock Property, Alberta - Very Near To Production
Irwin's inaugural project is the Richmount Westlock well in Alberta. Irwin Energy estimates that the initial production rate of the Westlock well will be 500,000 cubic feet of gas per day. Production flow from this well is scheduled to begin shortly. Management anticipates that production from the Westlock well will be increased in four months after a review of reservoir data from the initial production records.
The Westlock was perforated and flowed at one million cubic feet per day for several hours to clean-up the formation. The pressures were 964 PSI (pounds per square inch) at surface and between 1050 to 1075 PSI at the perforation depth indicating a potential new pool relative to the off-set gas well. After flowing, the wellhead pressure returned to the original shut in pressure immediately.
The initial production rate of the well is estimated to be 500,000 cubic feet of gas per day. The company's participation in this project is twelve and a half percent. Production flow from this well is scheduled to begin during the second quarter of 2005.
"The Sylvan Lake oil and gas field was discovered in the late 1950's and has produced over 40 million barrels (mbbls) of high quality crude oil and 50 billion cubic feet (bcf) of associated natural gas."
Sylvan Lake Property, Alberta- Discovering What the Majors Overlooked
Irwin Energy's second project is Sylvan Lake drill program. The initial well is a 7,200-foot Peskisko Sand test that is prospective for oil and gas. Montana Oil and Gas has estimated that each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 300,000 barrels of oil. The average well in the Sylvan Lake Field has produced 500 barrels of oil per day with over one million cubic feet of gas per day. Irwin Energy's participation in this project is five percent. If successful, the company intends to drill up to 4 more wells on these land sections.
Sylvan Lake Area A Long and Steady Producer The Sylvan Lake oil and gas field was discovered in the late 1950's and has produced over 40 million barrels (mbbls) of high quality crude oil and 50 billion cubic feet (bcf) of associated natural gas. Production continues steadily today and many large companies pay benefits to their shareholders based in part on the resources found in the Sylvan Lake area.
The story begins back in 1958 when an exploratory well was drilled by major company in the area designated 7-3-38-3W5M (currently held and being drilled by The Company) but was abandoned after finding the shallow formations completely eroded by what is called post depositional cutting. As a consequence, the major company did no further exploration on this section and eventually bowed to the complaints of the freehold mineral rights owner and relinquished the deeper mineral rights on the West half back to the freehold mineral rights owner in the early 1960's. This relinquishment was extraordinary at the time as mineral right severance of this type had very seldom ever been done and more specifically, not often by the major companies. Accordingly, these mineral rights sat available and dormant until the early 2000's as almost all oil and gas companies thought they were held by the original lessee.
Through diligent land work (including field visits) Energy 51 discovered this relinquishment and quickly leased the west half of section 3. Since that time they have managed to lease an additional 160 acres.
"Each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day..."
Huge Potential Production This prospect has the potential to encounter both oil and gas in 5 of what are called Mississippian rock formations. Areas with certain similar particular geological features are common throughout Alberta and account for billions of barrels of reserves.
The Company and their partners interpret their prospect as an "island" of oil and gas much the same as the famous "N" pool of the Sylvan Lake area that is one of the main pools in production. If successful in discovering the anticipated isolated remnant pool, they may have room to drill upwards of four or five other wells in the same area.
Each development well has probable production of 150 barrels of oil per day and 750 million cubic feet gas per day with reserves in excess of 1 billion cubic feet gas and 300,000 barrels of oil. There are also four other pay zones that are prospective for gas. The average well in the Sylvan Lake Field has historically produced 500 barrels of oil per day with over one million cubic feet of gas per day.
Low Infrastructure Costs One major benefit to the way this property was discovered and explored is that infrastructure costs will be minimal because of the existing productions on the immediate area. This area has been developed for both oil and natural gas over the past forty-five years. Accordingly a multitude of gas gathering and processing facilities and oil transportation facilities have been constructed. A major gas processing facility is located within two miles of our project with gathering system lines with one half a mile from our proposed drilling location. The capacity of the processing facility is approximately 70 mmcf/d with current throughput of only 46 mmcf/d. Accordingly, excess capacity of 24 mmcf/d exists in the facility which would be in the best interest of the operator to fill as soon as possible. This gas processing facility also has oil pipeline access for the transportation of raw oil product to the main delivery terminals north of Red Deer, Alberta. Accordingly, trucking costs would be minimal to get oil product to the transportation system.
"With crude currently trading around USD $50.00 a barrel and natural gas over $7.00 per thousand cubic feet, it is apparent that initial probable reserves assessments for Westlock and Sylvan Lake production have the potential to generate significant revenue."
Barrhead Gas Project Irwin Energy's third project is the Barrhead gas project in central Alberta. The property includes a gas well, which has already tested gas in two zones. The project size will permit the drilling of at least three new wells.
Current plans at Barrhead call for completion work to be done on well No. 1; the well existing on the property when we acquired our interest, and to commence the drilling of well No. 2. Upon completion of the drilling on well number 2, Irwin will have acquired an interest in both wells. Irwin Energy's participation in the project is six and two thirds percent. The drill site for well No. 2 has been surveyed with drilling estimated to start immediately within 30 days subject to availability of a drill rig. The next well will be drilled right after well 2 is complete. All 3 wells will be fractured to breakdown the oil-permeated formation in the upper zone, before pipelining the combined flow from the 3 wells into a near-by refining facility.
Total cost for these three wells including fracturing and tied-in at Barrhead has been estimated at C$922,066 of which Irwin Energy and the other participants on the property, have fully paid their required drilling costs covering well No 2. Included in this estimate are the costs to hook these wells into the main gas delivery pipeline. Production from the three well is conservatively estimated at 150mcf/day with ultimate per well reserves at 383,000,000CF.
Combined Projects Revenue Potential The revenue potential of these projects is substantial. With crude currently trading around USD $50.00 a barrel and natural gas over $7.00 per thousand cubic feet, it is apparent that initial probable reserves assessments for Westlock and Sylvan Lake production have the potential to generate significant revenue. At Sylvan Lake alone, 1 billion cubic feet of gas and 300,000 barrels of oil conservatively equate to a combined probable reserve value in excess of USD $15 Million (based on a conservative estimate of a natural gas price of over $7 per 1000 cubic feet and over $50 per barrel of crude).
LAST PR
Irwin Energy Announces Monthly Production Totals For Successful Gas Well VANCOUVER, British Columbia, Nov. 3, 2005 (PRIMEZONE) -- Irwin Energy Inc (Pink Sheets:IWNN) is pleased to report monthly gas flows for the 1-5-60-25W4M Westlock well that was completed and tied into a sales line in May and which is currently produce revenues for the company. The Westlock well thus far has produced 163.8, 271, 104.2, and 129.38 E3M3 (convert to MMCF 0.035494) from May to August inclusive. Volumes for September and October will be announced upon receiving the appropriate data from our operator. All appropriate royalties, transportation and operating costs have been factored in and taken off by the operator. Mr. John Gaetz noted, "The huge rise in natural gas prices of late will benefit the company and its shareholders in terms of future revenues and immediate cash flows."
The Company has a 12.5% interest of the profit sharing on the property and at a current rate of natural gas prices estimated at $10-$11 per mcf over the last months, the Company stands at a good return on its investment. Further update on the revenues will be forthcoming from the operator and our joint venture partners.
The operator of the NZOG 17-1 has competed initial preliminary hydrocarbon tests. These completed tests have confirmed the presence of oil/hydrocarbons and have as of October 13, 2005 taken steps to install a pumping station. Once this pumping station is up and running, (which is planned in the next few days), tests will be conducted to determine a stable daily flow rate to determine the production rate for revenue.
President John Gaetz stated that "the Company would like to take this time to thank its share holders for their patience over the last couple of months. We are very excited to have made this announcement as to the success of this well. Once NZOG 17-1 is in full production, the product will be pumped into production tanks on the property for easy 365-day access to be delivered by truck to Giant Industries Refinery in New Mexico, 85 miles away."
About Irwin Energy, Inc.
Irwin Energy, Inc., based in Vancouver, B.C., was founded for the purpose of engaging in the exploration for and acquisition, development and production of crude oil and natural gas, and for other related activities. In the oil and gas arena, Irwin Energy seeks out low-risk opportunities to develop positive cash flow from proven and probable oil and gas plays. Irwin Energy plans to grow exclusively through efficient reinvestment of its internally generated cash flow in exploration and production operations, and through limited external financing to build ancillary businesses.
Safe Harbour statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors affecting the company's operations, markets, products and prices and other factors discussed in the company's various filings with the Securities and Exchange Commission.
CONTACT: Irwin Energy, Inc. Kristyn Rose 604-628-7799
Andy Leitao 604-628-2142
Source: PrimeZone (November 3, 2005 - 8:00 AM EST)
WHY INVEST IN OIL AND GAS?
World Oil Market Makes Irwin Energy an investment Opportunity In the last eighteen months, we witnessed a historic increase in the price of fossil fuels as the price of crude surpassed the $50 dollar mark. As an investor, the question arises: Can the bull market in oil and gas be sustained? The quick answer: YES.
Higher oil and gas prices are here for the long-term, because factors like demand from booming Asian economies, strategic reserve shortages, war, terrorism and geo-political instability, are market pressures that won't be resolved over night, thereby causing prices to remain high. As such, the energy sector continues to offer promising, long-term investment opportunities. Many of these opportunities can be found in small-cap and micro-cap exploration companies.
"the energy sector continues to offer promising, long-term investment opportunities"
This in a nutshell is why Irwin Energy has chosen to make oil and gas its first focus.
Why Invest in Oil and Gas in 2005? America is facing an energy supply crisis that looks like it is going to get worse, before it gets better, if it improves at all. As the world's largest consumer and importer of oil and natural gas, the US must rely on other countries to meet its energy needs, simply because the nation cannot produce enough domestic oil and gas to meet its own needs. In a nutshell, while record numbers of American's drive gas guzzlers, the country teeters close to the brink of energy insolvency.
The US natural gas supply/demand situation is the tightest it has been in three decades, due, in part, to low domestic reserves in storage. The United States has not been this low on natural gas reserves for a very long time. It's a huge shortfall that equates to over a trillion cubic feet or more of natural gas, which usually is in storage, but has instead been depleted.
U.S. oil production peaked in 1970. Going forward, domestic oil production in the U.S. will decline from 8.5 million barrels per day in 2002 to 7 million barrels per day in 2020 - while consumption will rise from 19.5 million to 25.5 million barrels. The U.S. will have to import more than three quarters of its total oil and gas needs by 2020.
"China now imports more than 2.5 million b/d of crude oil and 500 thousand b/d of refined products."
China's Insatiable Appetite for Oil and Gas The mega-impact on the global supply of oil and gas resulting from ever increasing Asian demand is also taking its toll. Increased demand from China's explosive economic expansion is, in part, driving the biggest increase in fossil fuel demand in the past 16 years. Since the early 1990's, China's GDP has grown by a compound annual rate of approximately 8 to 9 percent. Throughout Asia energy and raw material supply are becoming big problems. The situation is critical, particularly in terms of electrical energy supply (produced at plants running on combustible oil). Power failures and long black-outs occur frequently in China, India and other countries of Southeast Asia.
In the last decade, China went from being a modest oil-exporting country to a major oil-importing country. Imports of crude to China have increased every year since 1992, the last year China produced a small surplus of crude oil. China's crude-oil imports in 2003 hit a record 80 million metric tones. According to figures from Chinese customs officials, crude-oil imports in the first seven months of 2003 jumped 30 per cent from a year earlier. China now imports more than 2.5 million b/d of crude oil and 500 thousand b/d of refined products. Total consumption, in 2004, so far, is estimated to be up 13.6%. This demand is driven by explosive economic growth in a nation with 1.3 billion people and a burgeoning middle class.
Recognizing that its growing demand for a steady supply of petroleum is a problematic issue, China is taking steps to secure its future energy needs. China has stepped up diplomatic initiatives to foster stronger relations with oil exporting nations, thereby potentially putting the squeeze on supply to the US. China also has plans to create a strategic petroleum reserve targeting a 75 day supply. At current consumption, that would mean 450 million barrels in storage. To meet this end, China has been buying foreign reserves and striking long-term supply deals for both crude and natural gas. In short, China's growing demand for fossil fuels complicates the US's ability to procure supply.
The booming Chinese economy means demand for oil, gas, and other commodities will be strong for years to come. The ripple effect from such strong demand will be felt across the globe as commodity prices, including oil and gas, continue to increase or remain near record highs.
"The United States needs to decrease its dependency on oil from countries that are politically unstable and/or hostile to it."
Problems in the Middle East Stroke Supply Fears Terrorism and geo-political tensions are an additional problem to the reliability of future energy supply. Saudi Arabia remains the world's largest oil exporter and is a country the US is firmly energy dependent upon. This is a precarious situation when one considers Saudi's vulnerability to terrorist attacks from Al Qaeda, and other militant factions.
Some analysts suggest that Saudi pipelines could be targets of terrorists and that more needs to be done to protect that infrastructure. The concern is that an attack on Saudi operations could affect the Kingdom's ability to serve as a swing producer who has extra production capacity to open and close the taps. Needless to say, any substantial attack on Saudi oil facilities would be a major event for world oil markets. The threat to Saudi's oil supply is case in point, experts say, as to why the United States needs to decrease its dependency on Middle East oil. Political instability in the Middle East and terrorist threats will keep oil and gas prices at multi-year highs.
Though Iraq has the potential to be a major exporter of oil to the world, war and civil unrest in there suggest it will be years before it can produce and export a steady supply of oil. Analysts also view political tension in major, non-Middle East oil exporting states of Nigeria and Venezuela as also having the potential to significantly disrupt exports and drive up world prices. The United States needs to decrease its dependency on oil from countries that are politically unstable and/or hostile to it.
"...these circumstances will continue to encourage exploration investment in Alberta for years to come, thereby creating new opportunities for savvy investors."
World Oil and Gas Production is Declining Though Production is at Capacity World oil and gas production from existing fields is declining at an average rate of 4% to 6% per year, as the World's largest oil fields age. According to the Colorado School of Mines, the world's 120 largest oilfields produce about 33 million barrels a day - almost 50% of the world's supply. Making the situation worse, investment in oil production infrastructure as well oil exploration is lagging behind world demand. To meet projected demand in 2015, the industry will have to add about 100 million barrels a day of new production.
According to the United States Geological Survey's latest report published in 2000, the world's proven oil and gas currently stands at about 2.5 trillion barrels. A calculation using data from the Center for Global Energy Studies shows that with 28.8 billion barrels currently being consumed per year (79 million a day), there is only 80 years of supply left in the ground. In 2002, the world produced slightly more than 66 million barrels of oil a day (bod), while it consumed about 76 million bod, or 25-27 billion barrels a year. Yet, only 7 billion new barrels a year are discovered. The U.S. Geological Survey says that world production will peak sometime in 2011-2015.
Saudi Arabia is essentially pumping at 100% capacity. Increasingly, Saudi Arabia's capacity to function as a reliable swing producer of oil in times of supply constriction is uncertain. Much of this problem is that Saudi Arabia and other OPEC members have not invested resources in further production capacity. Russia has about 60 billion barrels of proven resources but that is only about enough to supply the world for less than two years. It is generally believed there are no more significant quantities of oil to be discovered inside of Russia. Although West Africa states accounted for 10% of global oil production in 2000, the U.S. Department of Energy estimates that this share will increase to a full quarter of world production by 2020.
In the face of current escalating rates of demand, the issue of supply shortage is exacerbated. With supply shortages and increases in global demand for natural gas has come the need to find new inexpensive reserves. All of the above concerns highlight a strong case for Alberta as a reliable, low-risk, long-term supplier of fossil fuels. Accordingly, these circumstances will continue to encourage exploration investment in Alberta for years to come, thereby creating new opportunities for savvy investors.
Alberta is a Convenient, Reliable and Abundant Source of Oil On the World stage, Alberta's oil and gas potential is largely overlooked. The December 23, 2002 edition of Oil and Gas Journal reported that Saudi Arabia is home to the World's largest proven reserves, with known reserves approximating 259 billions of barrels (bob). (See chart below).
"Canada holds the world's second largest proven reserves at about 180 bob (excluding the tar sands), which is approximately 40% more than Iraq's known reserves..." Country Proven Reserves Saudi Arabia 259 Canada (excluding tar sands) 180 Iraq 112 Kuwait 94 Iran 90 Venezuela 78 Russia 60 U.S. 22 China 18 Norway 10
As you see, Canada holds the world's second largest proven reserves at about 180 bob (excluding the tar sands), which is approximately 40% more than Iraq's known reserves of 112 bob. Alberta has more than 45% of Canada's established reserves of crude oil, 100% of the country's oil sands reserves and 85% of its natural gas. Alberta is also the world's 2nd largest natural gas exporter.
Equally important is that these massive reserves are on the North American continent in the politically stable G7 country of Canada. Alberta oil and gas can be easily and safely transported to the U.S. and other markets.
Posts: 1632 | From: NJ | Registered: Nov 2005
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Alberta and Gas Although most people focus on oil in the energy equation, natural gas is also very significant, particularly in the North American context. Natural gas is generally located deep under ground in porous rock formations sandwiched or trapped between more solid rock formations. It is one of the cleanest burning fuels and is increasingly used for heating and cooling, by industry and for electrical generation and Alberta produces five trillion cubic feet of natural gas per year delivered through what is called the Alberta Hub that helps link 500,000 kilometres of gas pipelines. Moving through this network throughout North America, natural gas travels through a pressurized pipeline at speeds of up to 40 kilometres per hour. It would take natural gas approximately three days to travel from Alberta to southwestern Ontario.
Alberta also has significant potential for natural gas in coal (coalbed methane) development, which may help meet the growing demand for natural gas by supplementing conventional natural gas reserves.
Natural Gas is Crucial to North America's Energy Needs Canada is in the process of tripling its natural gas exports to the United States. While U.S. oil fields were dying all through the '90s, Canada doubled their natural gas exports. Experts predict Canada will outgrow U.S. gas exports by 50% within this decade.
Natural gas stocks soared when investors discovered stored natural gas was at a six-year low, meaning it would be tough to make it through a cold winter. But just because it isn't front-page news today doesn't mean the problem has been solved. Some 55 million American houses use natural gas for heat. They're still paying as much as 72% more for gas than they did three years ago. Natural gas producers are working at full capacity too' but production is barely pacing demand. What's more, unlike oil, gas is not transported cheaply. It's not stored easily and there are no strategic reserves. Companies are scrambling to finish the pipelines to places like the Mackenzie Valley. It's a lot like the race to build the first railroad to California in the 1800s.
"Alberta, a stable G7 country, contiguous to the United States will be able to supply gas for a long time to come."
90% of U.S. Utility Companies Burn Natural Gas To Make Electricity After a massive spike, natural gas prices have eased off as Winter moves into Spring. Some 55 million American houses use natural gas for heat, however natural gas isn't just for heating anymore as it is central to the production of electrical energy on this continent.
The strategic oil reserve is no use to these utilities and the resulting electrical energy they distribute so if there is an interruption in supply for any reason in the tinderbox of the Middle East, political disruption in Venezuela or a terrorist attack on a crucial energy facility America will need to be able to reach back for secure supplies of this crucial resource. Alberta, a stable G7 country, contiguous to the United States will be able to supply gas for a long time to come.
-------------------- Lil,
Dont LOSE more than you can afford to invest....LOL
I'm buying low and selling into the run... Posts: 8024 | From: Joisey....see attitude above | Registered: Jan 2004
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Hey Jelly, after some review..here's the dealio yo...im thinkin that I either want to buy RSHN today..or IWNN..at this point i only feel good about picking one of the two...any input?
-------------------- S. S. S. = sx3 Posts: 6 | From: Indianapolis | Registered: Mar 2006
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RSHN is horrible ask Blue in MI, tha thing has had a thousand reverse splits, but just do your DD before getting into any of them
Posts: 510 | From: Dallas, TX | Registered: Apr 2005
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-------------------- Forgive me if I ask any "stupid" questions. I'm new to trading. Someone please help me!!!!!! Posts: 81 | From: San Diego | Registered: Mar 2006
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-------------------- Forgive me if I ask any "stupid" questions. I'm new to trading. Someone please help me!!!!!! Posts: 81 | From: San Diego | Registered: Mar 2006
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IWNN is working with Halliburton for cryin' out loud.
Irwin Announces Receipt of Logs on Concho Dome Well Tuesday July 26, 2005 10:33 am ET
VANCOUVER, BC--(MARKET WIRE)--Jul 26, 2005 -- Irwin Energy, Inc. (Other OTC:IWNN.PK - News) (the "Company") is pleased to announce the following update on its' NZOG 17-01 well currently being tested in Arizona.
The well was drilled to a total depth of 2,320 feet to the base of the Permian Supai. The Company is now in receipt of the Schlumberger open hole logs and the mud logs. The well is being tested at the primary interval of 1,965 to 1,974 feet in the Permian Supai. There are additional zones of interest between 1,447 and 2,241 feet that could be tested at a later date.
The well was completed with 4 1/2 inch steel casing and was cemented by Halliburton. Schlumberger also ran the cased hole logs and perforated the current interval being tested.
President John Gaetz states, "We are very encouraged with our results so far. The upcoming weeks represent an exciting stage of development (exploration) for Irwin Energy."
The Concho Dome Anticline is located along the upper edge of the Permian salt basin, and thus the subsurface reefs, beaches and sandbars may contain oil, natural gas and/or helium.
-------------------- Buy Low. Sell High. Posts: 10750 | From: The Land Of The Giants | Registered: Feb 2005
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quote:Originally posted by sx3indy: Hey Jelly, after some review..here's the dealio yo...im thinkin that I either want to buy RSHN today..or IWNN..at this point i only feel good about picking one of the two...any input?
I'm sorry I didn't see this til now. I'm pretty busy trading during trading hours. I hope you decided!
Posts: 1632 | From: NJ | Registered: Nov 2005
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whats the deal with this one not much action today
-------------------- Always do your own due diligence. My posts are neither a buy, sell, or hold recommendation; and express only my personal opinion. Please consult your financial advisor before making any investment decisions. Posts: 163 | From: Ohio | Registered: Jan 2006
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