Q2 results (net of $3.446 millions, Q1 was .808 million) looked good but the market reacted differently, sending CTA under $3 per share.
More news, today:
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Crocotta to begin Rock Creek and Montney drilling
2008-08-14 06:26 ET - News Release
Mr. Rob Zakresky reports
CROCOTTA ANNOUNCES DRILLING PROGRAM
Crocotta Energy Inc. has approved a third quarter and fourth quarter 2008 drilling program of $40-million. The drilling program will allow Crocotta to further its key growth plays in the Rock Creek and Montney formations using horizontal multifrac technology in addition to conventional drilling on various key properties. The program will be financed entirely from cash flow and undrawn bank credit facilities.
The program consists of approximately 16 gross wells (12 net) and is estimated to add approximately 2,000 barrels of oil equivalent per day of risked production. The company has estimated that the first quarter of 2009 average production will be approximately 3,000 barrels of oil equivalent per day based on wells being placed on stream throughout the period from November, 2008, through the end of February, 2009 (excluding the Dawson Montney well which will not be on stream until late 2009 or early 2010).
The drilling, which includes three (2.5 net) Rock Creek horizontal wells and one Montney horizontal well, also exposes the company to materially higher-potential production rates on an unrisked basis in addition to setting up numerous offsetting locations pending success.
Niton and North Pembina, Alta.
The Niton and North Pembina areas of Crocotta's west-central Alberta core area are the main focus of the drilling program, with approximately 50 per cent of the budget ($20-million) allocated to the area.
Crocotta anticipates it will drill nine (7.8 net) wells including three (2.5 net) Rock Creek horizontal wells, three vertical Rock Creek wells and three (2.3 net) Mannville wells. The Rock Creek horizontals have been very prolific in the area and initial production rates range from 250 barrels of oil equivalent per day to over 1,500 barrels of oil equivalent per day per well. Crocotta has identified over 20 horizontal Rock Creek locations on its lands at this point in time.
Dawson and Tupper, B.C.
Crocotta holds an average 76-per-cent interest in approximately 12,500 acres of Montney rights in the Tupper and Dawson areas of British Columbia. The lands are located in the Montney fairway that has significant natural gas resource potential. Crocotta anticipates it will drill its first Montney horizontal in late September or early October of this year.
Offsetting horizontal wells in the area have initial rates ranging from 300 barrels of oil equivalent per day to over 1,500 barrels of oil equivalent per day. Crocotta has identified over 45 potential horizontal drilling locations on its lands.
Lookout Butte, Alta.
Crocotta holds a 50-per-cent working interest in 7,040 acres of land and can earn a 50-per-cent working interest (via farm-in) in an additional 5,120 gross acres by drilling two wells by early 2009. Crocotta plans to drill two (1.0 net) wells following up a Mannville discovery well that was drilled by the company late in 2007. The discovery well has up to four potential pay zones of which only the lowest most formation is currently completed. Wells in the area have had initial rates ranging from 20 barrels of oil equivalent per day to over 400 barrels of oil equivalent per day.
Miscellaneous
The remainder of the drilling program consists of two development wells and two exploratory wells in west-central Alberta.
We seek Safe Harbor.''
IMO, promising. Always a risk. Do DD.
go
