Kroes Energy Inc. Announces Significant Increase in Cash Flow

Kroes Energy Inc. ("Kroes" or the "Corporation") (TSX VENTURE:KRS) announced its
second quarter results for 2008. Cash flow from operations for the six month
period ended June 30, 2008 increased to $297,045 from a negative $102,185 in the
comparable period last year reflecting the continued success of the western
Canadian shallow gas program. Production for the first six months of 2008
averaged 88 BOE/D compared to 36 BOE/D in 2007.


During the first half of 2008 Kroes participated in drilling three wells with a
12.5% working interest. One well has been producing since mid July at 532 Mcf
per day (11 BOE/D net to Kroes) and a second well is on production at a
restricted rate of 248 Mcf per day (5 BOE/D net to Kroes) while cleanup from a
fracture stimulation is in process. The third well was completed and tested for
an expected production rate of 639 Mcf per day (13 BOE/D net to Kroes) and is
scheduled to be onstream the last week in August. In total these three wells
will increase Kroes net production by 177 Mcf per day (29 BOE/D). Kroes now has
interests in 10 shallow gas wells that are on production. In addition the
Company has interests in three shut in Viking gas wells that are expected to be
connected in the fourth quarter after compression and pipeline tie-ins are
installed.


Kroes is also currently participating in a four well drilling program (Kroes
share 0.875 wells) that began on August 20, 2008. If successful, initial
production would be expected in October or November 2008.


With respect to the recently acquired Vecta lands, the Company anticipates a
very active program over the next few months in the Brewster area:


15-11-43-13 W5M - This Crew-operated well began producing in mid-July and
continues to flow at an average gross rate of 2.5 Mmcf/day (55 BOE/D net to
Kroes) plus some associated liquids from the Belly River formation into the
nearby Encana gathering system. Kroes will have a detailed report soon regarding
the liquid content as to condensate and load frac oil as the well continues to
clean up. Kroes has a 13.125% working interest in this well.


08-22-43-13 W5M - This well will be spudded around the end of August or early
September. Kroes has a 7.5% working interest in this Crew-operated well which is
targets the Belly River formation and is on trend with the 15-11well and another
industry producer.


07-16-43-13 W5M - This previously drilled well will be re-entered for completion
in the Belly River zone. Crew, the operator, expects this operation to commence
in early September. Kroes has a 13.125% working interest in this re-entry.


12-15-43-12 W5M - Kroes has received fracture stimulation proposals from
Schlumberger and Gasfrac Services for the Rock Creek, Nordegg and Mannville
zones in this well. Buffalo, the operator, is presently studying pipeline access
and connection costs in order to assess the economics of completing this well.
Kroes has a 47.5% working interest in this well.


There continues to be brisk activity in the Brewster area from a number of
operators, including Encana, Crew, Baytex and others, primarily targeting the
Belly River. Kroes expects to participate in several other drilling projects, in
addition to those listed above, over the next 6- 12 months.


BOE's may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6MCF:1Bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.


FORWARD-LOOKING STATEMENTS

This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Kroes' control, including: the impact of general economic conditions in
the areas in which the Company operates, industry conditions, changes in laws
and regulations including the adoption of new environmental laws and regulations
and changes in how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
commodity prices, foreign exchange or interest rates, stock market volatility
and obtaining required approvals of regulatory authorities. In addition, there
are risks and uncertainties associated with oil and gas operations; therefore,
Kroes' actual results, performance or achievement could differ materially from
those expressed in, or implied by, these forward-looking estimates and,
accordingly, no assurances can be given that any of the events anticipated by
the forward-looking estimates will transpire or occur, or if any of them do so,
what benefits, including the amounts of proceeds, that Kroes will derive from
that.


To receive company news releases via e-mail, please advise admin@kroesenergy.com
and specify "Kroes Press Releases" in the subject line.
Kairos Capital Corporation (TSXV:KRS)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024