PrimeGen Energy Announces Interim Operations Update
10 Agosto 2010 - 11:32AM
Marketwired
PrimeGen Energy Corp. (PINKSHEETS: PGNE) ("PrimeGen" or the
"Company") announces the following Interim update for the period
from January 1, 2010 to June 30, 2010.
Key Highlights
- The average daily production rate reached 31,507 barrels of oil
per day ("bopd") in Q2 2010;
- Six wells came on stream at average rates of 1,550 bopd, 1,420,
1,760, 1,900 bopd and 2,730, 2,809 bopd;
- Capital expenditure on infrastructure and drilling was
approximately US$26.8 million for Q2 2010.
Vladamir Y. Protskiv, CEO, commented: "PrimeGen continues to
increase production. In Q2 2010 we achieved a 3000% increase in
gross production compared to Q1 2009. This year we have added 7 new
wells to our drilling program, in addition to the objective of
completing 25 wells by year end. Additionally, our infrastructure
program for the year is proceeding as planned to facilitate our
expansion."
Production Update Q2 The gross production
for Q2 2010 averaged 31,507 bopd. This represents a 3000% increase
over the comparable period in 2009 when the average daily
production rate was 1,050 bopd.
Drilling Update Q2 Rig 0187720035
completed the Kochmesskoye #13 and #14 wells in Q2 2010. The wells
tested at a combined rate of 3,680 bopd. Rig 0187720035 has since
been moved to the next drill location on the Timan-Pechora property
where it has commenced drilling the Kochmesskoye #15 well.
The Kesrzova rig has completed the Rod 10-24 and Rod 10-25 wells
in Q2 2010. The wells tested at a combined rate of 5,548 bopd.
Future wells are expected to have better performance, as they will
target a more prolific area of the property.
Marketing PrimeGen has been marketing the
majority of its barrels through a crude oil swap contracts with a
subsidiary of a National Russian Oil Company. The terms of the swap
contracts are for 5 years and expires on June 30, 2014. PrimeGen is
satisfied that there is sufficient capacity in existing marketing
routes to satisfy current production. The realized prices are
expected to be impacted by any future changes in the marketing
arrangements. PrimeGen continues to assess additional routes to
market its crude oil.
Corporate restructuring On April 5, 2010,
the Board of PrimeGen Energy Corp. announced that it had decided to
proceed with a proposed corporate restructuring of the Company.
This proposal was made following an extensive review of the options
and implications of a restructuring, together with a period of
shareholder consultation. PrimeGen currently quoted on Pink Sheets
or OTC Markets in the United States under the Stock Symbol: PGNE.
The Company is pursuing other public listing options to maximize
shareholder stock value, not limited to stock exchanges in the
United States or Europe. The Company moved its operations to Russia
in March 26, 2010 to facilitate future expansion and development
and will continue to build its infrastructure from the new location
moving forward.
Capital expenditure Capital expenditure
for Q2 2010 was around US$26.8 million. Of the total capital
expenditure, approximately 14% was attributable to infrastructure
with the balance spent on drilling.
Current Operations and Outlook Rig
0187720035 is due to complete the Kochmesskoye #15 well on August
12, 2010. Rig 0187720036 is scheduled to complete Kochmesskoye #16
well and complete a further 5 wells by the year-end. The Kesrzova
rig which is expected to complete the current well on Rod 10-26
before the end of August, 2010. PrimeGen is working towards
completing 25 new wells in 2010. The Company expects to be able to
achieve an average production growth of approximately 15% to 20%
per annum over the three year period of 2010 to 2012.
About PrimeGen Energy Corporation
PrimeGen Energy Corp. is an oil and gas exploration Company
whose primary focus is exploring and developing high potential
unconventional resource plays. The Company's strategy and
development assets are focused on a prolific and historic oil and
natural gas resource play in Krasnoarmeiskome District, Saratovskoi
Oblast in Russia. The Company is headquartered in Moscow, Russia.
PrimeGen Energy plans to use its comparative advantages in certain
geographic regions to expand rapidly through strategic acquisitions
of small oil and gas producing entities and production assets
including wells, properties, operating equipment, and
pipelines.
Forward-Looking Statements
This news release contains "forward-looking statements," as that
term is defined in Section 27A of the Act and Section 21E of the
Securities Exchange Act of 1934. Statements in this press release,
which are not purely historical, are forward-looking statements and
include any statements regarding beliefs, plans, expectations, or
intentions regarding the future.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
the development of an early stage company in the alternative energy
industry, its products, and the entry into new markets for such
products. These forward-looking statements are made as of the date
of this news release, and the Company assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements. Although the Company believes that the
beliefs, plans, expectations, and intentions contained in this
press release are reasonable, there can be no assurance those
beliefs, plans, expectations or intentions will prove to be
accurate. Investors should consider all of the information set
forth herein and should also refer to the risk factors disclosed in
the Company's current and periodic reports filed from time to time
with the Securities and Exchange Commission.
Contact: Vladamir Y. Protskiv PrimeGen Energy Corporation
Email: ir@primegenenergycorp.com Tel: +7 095.920.2120
http://www.primegenenergycorp.com
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