Running Fox update on Pincher wellRunning Fox operator drills Pincher well to 2,212 m
2005-08-17 17:29 ET - News Release
Shares issued 57,164,083
CZE Close 2005-08-17 C$ 0.82
From News Release (C-RUN) Running Fox Resource Corp
Mr. Wayne Waters reports
HIGH IMPACT ALBERTA NATURAL GAS DOWN-SPACING HORIZONTAL WELL PROCEEDING
As previously announced, Running Fox Resource Corp. had elected to participate as to a 30-per-cent gross interest in the first section of its Pincher Creek gas field leasehold with Choice Resources of Calgary, Alta., as the operator. After payout, the interest converts to a 15-per-cent net interest.
The first well in the program at 1-5-3 of 28 is a horizontal well currently drilling at 2,212 metres, with Precision drilling rig No. 645. Total well depth is 4,579 metres, including the horizontal leg.
The well is a down-spacing exploitation well, with a potential resource base between 30 billion cubic feet and 80 billion cubic feet. Possible production rates are targeted to be between 10 million cubic feet per day and 35 million cubic feet per day plus British-thermal-unit-rich liquid condensates.
A comparable well located just north at 6-19 has produced almost 75 billion cubic feet to date and continues at approximately 1.2 million cubic feet per day.
All equipment, separators and facilities are in place and, as this is a down-spacing well, the gas pipeline is currently operational and within 50 metres of the drill rig. Natural gas is currently $9.68 per thousand btu spot price and slightly lower for September delivery.
The Pincher Creek gas field leasehold option covers 27 additional sections and encompasses numerous development and exploration targets, in addition to the existing section being earned by participating in the down-spacing exploitation well. Further information on this project and the company's other projects is available at the company's website.
Private placement completed
The company has completed its recently announced non-brokered private placement to raise $2,175,000. All securities issued under the private placement are restricted until Dec. 3, 2005.