BPI to Continue Monitoring Shelby Pilot
07 Maio 2007 - 9:00AM
Business Wire
BPI Energy Holdings, Inc. (Amex:BPG), an independent energy company
engaged in the exploration, production and commercial sale of
coalbed methane (CBM) in the Illinois Basin, today announced its
decision to continue production activities at the company�s Shelby
CBM pilot in the Northern Illinois Basin, while deferring
additional development pending further production and pressure
information. �We intend to continue production at the Shelby pilot
and gather more information before we commit more capital here,�
commented Chief Operating Officer James E. Craddock. The company
stated that pressures from the new observation well indicated an
average reservoir pressure significantly above the �critical
desorption pressure,� a key measure of the progress of dewatering
the coals in the pilot project. A reservoir simulation of the pilot
indicates average net pay of 12 feet, gas content of 46 scf/ton and
gas saturation of 35 percent. By contrast, basin-wide averages for
these three values are expected to be approximately 20 feet, 80
scf/ton and 60 percent, respectively. Craddock further commented
that BPI uses pilot projects to cost-effectively high grade its
extensive acreage position before committing development capital in
a particular area. �In the case of the Shelby pilot,� he continued,
�the pressure and production results to date do not provide great
enough likelihood of commercial success to move into development at
this early stage. Further production history, as well as BPI�s
ongoing work to reduce development costs and improve well
performance, may make development at the Shelby pilot area viable
in the future.� He added, �It is important to keep in mind that the
Shelby pilot represents only 400 acres of our 500,000-acre
leasehold position. We have already initiated another pilot project
and envision many more, perhaps as many as 30, over the next
several years. We will continue to follow this piloting approach.
Some pilots will move quickly into development, some may take more
time and some will result in our avoiding spending substantial
capital in an area.� About BPI Energy BPI Energy (BPI) is an
independent energy company engaged in the exploration, production
and commercial sale of coalbed methane (CBM) in the Illinois Basin,
which covers approximately 60,000 square miles in Illinois,
southwestern Indiana and northwestern Kentucky. The company
currently controls the dominant CBM acreage position in the
Illinois Basin at approximately 500,000 acres. News releases and
other information on the company are available on the Internet at:
http://www.bpi-energy.com Some of the statements contained in this
press release may be deemed to be forward-looking in nature,
outlining future expectations or anticipated operating results or
financial conditions. Such forward-looking statements are subject
to known and unknown risks, uncertainties and other factors that
could cause actual results or conditions to differ materially from
the information expressed or implied by these forward-looking
statements. Some of the factors that could cause actual results or
conditions to differ materially from our expectations, include, but
are not limited to: (a) our inability to generate sufficient income
or obtain sufficient financing to fund our operations or drilling
plan through July 31, 2007, or thereafter, (b) our inability to
retain our acreage rights at our projects, at the expiration of our
lease agreements, due to insufficient CBM production, or for other
reasons; (c) our failure to accurately forecast CBM production, (d)
displacement of our CBM operations by coal-mining operations, which
have superior rights in most of our acreage, (e) our failure to
accurately forecast the number of wells that we can drill, (f) a
decline in the prices that we receive for our CBM production, (g)
our failure to accurately forecast operating and capital
expenditures and capital needs due to rising costs or different
drilling or production conditions in the field, (h) our inability
to attract or retain qualified personnel with the requisite CBM or
other experience, and (i) unexpected economic and market
conditions, in the general economy or the market for natural gas.
We caution readers not to place undue reliance on these
forward-looking statements.
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