Torrent Provides Update on Production Testing Operations at Pilot Projects
SEATTLE--(BUSINESS WIRE)--April 19, 2006--
Torrent Energy Corporation (the "Company") (OTCBB: TREN) announces the following developments from its wholly owned operating subsidiary, Methane Energy Corp. ("Methane").
Upon completion of the recent multi-well nitrogen (N2) stimulation program, Methane moved into production testing operations on both the Radio Hill and Beaver Hill pilot projects in Coos County, Oregon. Production tubing has now been run in all wells and production testing is underway. The Radio Hill #1 well has produced high quality limited methane volumes at stabilized flow rates for a period of nine days prior to being shut in for pump installation. Continuing modest increases in fluid levels in the wellbore have been recorded since the commencement of production testing, however, no formation water has been produced at surface to date from the well during this flow testing phase. A hydraulic pump-lift system is scheduled to be installed on the well before continuing with the production testing and this is expected to enhance the productive capability of the well.
The Beaver Hill #2, #3, #4 and #5 wells have all been swabbed dry after tubing was run in each well bore. Each well has been produced at stabilized rates for various periods of time and each well has produced for a maximum period of at least ten hours prior to the tubing installation. Fluid levels are continually monitored in each wellbore with an Echometer. While fluid inflows have been recorded in a number of the wells, no formation water has been produced to date at surface when the wells have been flow tested. Hydraulic pump-lift systems are scheduled to be installed in each well in the near future.
The Roll'n service rig is scheduled to be on location for another 10 days completing swabbing operations and pump and rod installations and then released from location. Thereafter, the wells will be flowed selectively to facilitate the acquisition of additional production and pressure data.
Sproule Associates Inc. has completed their revised resource assessment for the Methane leases in Coos County and they have increased their base case resource by 11% to a total of 1.2 TCF. In their resource assessment it is assumed that the coal cleat system is water filled, therefore, there was no free gas in the coals associated with this resource assessment. Results in the field, while still preliminary, have indicated that we may be operating in an environment with minimal water production from the various Lower Coaledo coals which could translate into a free gas component and a higher ultimate resource base. The Sproule resource assessment will be posted on the Torrent web site in the near future.
Torrent President and Chief Executive Officer, John Carlson, states, "We see the opportunity for a significant gas resource base in Coos County that has continued to increase in size over time. We are encouraged that each of our pilot wells is capable of producing at sustained gas rates. We will continue with production testing operations during the next few months to further expand our technical understanding of the various Lower Coaledo coal reservoirs. As with all North American coal bed methane projects, instant production results and understanding of reservoir characteristics are seldom the norm and patience is required to develop a complete reservoir and production model for a specific coal basin. We are prepared to stay the course and the early production data, in conjunction with the Sproule resource assessment, supports our plans to continue with further exploratory and development drilling throughout the Coos County Basin during our current fiscal year." Mr. Carlson went on to say, "The Company is developing a significant asset base in Coos County and we look forward to another season of drilling, completion and testing of additional wells in the basin. The Company will further delineate the various coal seams of interest, develop repeatability of the drilling process and optimize drilling and completion operations to ensure the next round of wells are drilled on a more efficient and cost effective basis".
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