RENO, NV--(MARKET WIRE)--Apr 6, 2009 -- Galloway Energy Inc. (Other OTC:GWGI.PK - News) ("Galloway" or the "Company") is pleased to provide additional information regarding its interest in the upcoming California gas projects located in the Central Valley of California.
As previously announced, Galloway has acquired a 10% working interest in two gas plays both of which are located in relative proximity to each other and to nearby wells in the area which currently produce in the 1,000 to 2,000 Mcf per day range. We are advised that the operator of the two plays is undertaking an extensive review of existing engineering information including 2D and 3D seismic data across several objectives which notably identify several target rock formations indicating correlative data for gas and which are currently under renewed analysis in order to ascertain exact well locations for the proposed 2009 drilling program.
The target locations are in what is considered to be one of the most prolific gas reservoirs in the Sacramento Valley with an aggregate production of over 400 BCF of gas recorded. The seismic data shows significant sandstone reservoir traps within the target region and as such, the first wells will target an indicated 50 feet of pay zone thickness at an 8,000 foot depth. If these sands are 100% gas filled and the well proves commercially viable, then upon completion and tie-in there is believed to be a projected initial production rate potential for up to 5,000 Mcf/day.
In order to provide additional context for these projects, it is worth noting that the target locations are nearby to such prolific gas fields as Union Island with 271 BCF produced, the McMullin Ranch field with 63 BCF and the Vernalis field with 103 BCF recorded. Additionally, these fields have been shown to have long life and stable rates of production and decline on most wells. Both projects are in well-serviced locations near roads, pipelines and support infrastructure.
Given California's increasing reliance on natural gas, the state has undergone a near tripling of costs within the past decade to upwards of $19 billion annually with natural gas accounting for almost one-third of all energy requirements. Natural gas has also become an increasingly critical source of energy as more of the state's power plants rely on this fuel. Insofar as California's successful efficiency programs combined with the current economic climate have slowed the demand for the fuel, competition for the state's imported supply is increasing significantly. This reliance on imported gas leaves the state vulnerable to price shocks and supply disruptions which the Company believes are of strategic importance to smaller, local producers such as Galloway and which will ultimately translate into major long-term growth opportunities for the Company.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 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. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our energy properties and any anticipated future production. 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 petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume 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 we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
No comments:
Post a Comment