Peace River Arch region
CALGARY, Aug. 25 /CNW/ - Galleon Energy Inc. ("Galleon") announces that
it has entered into a strategic farm-in agreement with Penn West Energy Trust
which provides access to 186 gross sections (119,040 gross acres) of land in
the Dawson area in the Peace River Arch region of Alberta. Galleon has
committed to drill a minimum of 15 wells on the multi-zone potential farm-in
lands over the next 18 months.
- The deal increases the company's land access in the Dawson area by
approximately one-third to 776 gross sections (496,640 gross
acres) and its average working interest in those lands to 83%.
- When combined with the existing 407 gross sections (260,480 gross
acres) in the greater Calais area, Galleon has expanded its core
Peace River Arch land access to over 1,183 gross sections (757,120
- Galleon now holds the second largest land position in the Peace
- Total land access is now approximately 1,294 gross sections
(828,160 gross acres).
- Galleon's drilling inventory exceeds 125 locations.
- Current production is approximately 8,100 Boe/d with 700 Boe/d
behind pipe awaiting tie-in.
- Six wells have been drilled and cased (100% success) for light
sweet oil production in the Dawson area of which three wells, in
total, are producing 1,400 Bbl/d. Based upon seismic and
geological interpretation, Galleon plans to drill an additional
10 to 14 wells targeting light oil in the next 12 months.
- Galleon has an exciting high impact drilling program planned in
the Peace River Arch. Four to six wells are expected to be drilled
in this program within the next 4 months.
- Galleon has increased the Q3 and Q4 2005 drilling program to
between 35 and 38 locations.
Galleon has received conditional approval to become listed on the Toronto
Galleon has 31,755,793 Class A shares and 922,500 Class B shares issued
and outstanding which trade on the TSXV under the symbols "GO.A" and "GO.B".
Galleon is a technically oriented high growth junior oil and gas company
with focused operations in the Peace River area of Alberta. Galleon commenced
operations in October 2003 and has had significant success in acquiring
undeveloped acreage, drilling and purchasing production.
ADVISORY: Certain information regarding Galleon Energy Inc. including
management's assessment of future plans and operations, may constitute
forward-looking statements under applicable securities laws and necessarily
involve risks associated with oil and gas exploration, production, marketing
and transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, environment risks, competition
from other producers and ability to access sufficient capital from internal
and external sources. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. Disclosure provided herein in respect of boes may
be misleading, particularly if used in isolation. A boe conversion ratio of
6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
For further information: SEE www.galleonenergy.com OR CONTACT: Steve Sugianto,
President and Chief Executive Officer, (403) 261-9287,
email@example.com; Glenn R. Carley, Executive Chairman, (403) 261-9277,
firstname.lastname@example.org; Shivon Crabtree, Vice President and Chief Financial
Officer, (403) 261-9276
CO: Galleon Energy Inc.
NI: ORDER OIL
-0- Aug/25/2005 18:18 GMT
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