Opal Energy Corp (the "Company") announced today that it has set casing and will test five or six prospective intervals discovered in the K2 Wilcox well designated as the Kane-Brandon #1.
Further, Opal has taken over operatorship from Milagro Exploration, effectively increasing its working interest in the well to 100% with limited incremental investment. While the discovery falls well short of the best case scenario, Opal expects to recover its drilling risk capital and realize a modest 2‑3 times return on investment in the completion. Partners that elected not to participate in the completion retain the right to back in at a 25% level on subsequent development wells.
Commenting on the Company's action, COO Tommy Bolin said, "the performance of our team in operating a deep (18,500 ft), high pressure (16,000 psi+), high temperature (440o
F) well without a hitch, marks an important milestone in the development of Opal Energy."
Opal is set to commence drilling over the next few weeks on the second of four "Big BCF" targets scheduled for 2007, pending receipt of funds from a key working interest partner.
Opal Energy
Opal Energy Corp., through its U.S. subsidiary Opal Energy Inc., offers an aggressive, disciplined and results-oriented vehicle to invest in the U.S. Exploration and Production sector with a particular focus on natural gas exploration targets in South Texas. The Company is actively identifying, funding and drilling a portfolio of modest to high-return natural gas exploration targets. Drilling risk is mitigated using advanced seismic techniques and establishing carried working interests in most wells. Opal is also currently undertaking a 75 square mile 3D seismic shoot.
August 16, 2007
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, production activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, production and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Opal does not assume a duty to update these forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com
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