First Quarter Builds on 2008 Successes
CALGARY, May 14 /CNW/ - Stealth Ventures Ltd. ("Stealth" or the
"Company") is reporting an increase in its average first quarter production of
10%, to 459 BOE/D or 2.8mmcf/d, over fourth quarter 2008 production. This also
represents an increase of 87% from the Company's first quarter 2008 production
level. The Company has established a five million dollar CAD facility with a
Canadian Chartered Bank and as reported in the Company's AIF and 2008 year-end
financial statements and Management's Discussion and Analysis, 2008 was a
pivotal year for Stealth, and one of tremendous growth.
- The net present value of Stealth's estimated future net revenue based
on forecast prices and costs as reported by Sproule, discounted at
10% before tax, is approximately $29 million. This represents, a 111%
increase year over year, and on the current issued and outstanding
share position represents approximately 32 cents per share.
- From exploration play in 2006 to a year over year proved plus
probable (2P) 2008 reserves increase of 74% to 3.23 MBOE (gas only)
exclusively through the drill bit.
- Increased Q4 2008 shale gas production 192% to 2.4mmcf/d compared to
the same period in 2007. 2008 average production was 1.54mmcf/d, a
233% increase compared to 2007.
- 2P economic reserve life index (RLI) of approximately 12.1 years
based on Stealth's 2008 annual production as reported in the December
31, 2008, Sproule report.
- Completed the year holding 126 sections of shale land, equaling 384
additional drilling locations (4 wells per section downspacing).
- Decrease in 2008 full cycle (drill, complete and tie-in) capital
expenditures from $373,000 to $300,000/well, a 20% reduction year
Stealth has experienced an extremely positive 2008 and it is executing
its 2009 business strategy. The Company has demonstrated excellent production
and reserve growth and an ability to reduce capital costs, critical in making
the Cretaceous Colorado shales a substantial resource play now and in the
future. The Company has expanded its inventory of potential reserves through
the exploitation of lower shale horizons in the Wildmere area, reducing
development risk. An ongoing development program in Alberta promises to
increase reserves and production. It will remain the key corporate focus for
growth in 2009 and beyond.
Stealth Ventures Ltd. is a Calgary-based junior oil and gas company whose
expertise and focus is on "unconventional" gas reserves from shale gas, CBM
and tight gas sand reservoirs.
STEALTH VENTURES LTD.
Per: DEREK KRIVAK
Chief Executive Officer
Forward Looking Statements:
This News Release may contain forward-looking statements based on
assumptions and judgments of management regarding future events or results
that may prove to be inaccurate as a result of exploration and other risk
factors beyond its control, and actual results may differ materially from the
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 wellhead.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS NEWS
RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS
MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED.
For further information:
For further information: Derek Krivak, CEO, Mark J. Roth, CFO, Stealth
Ventures Ltd., Tel.: (403) 514-9998, Fax: (403) 514-9995, Email:
email@example.com; Richard Cohen, Investor Relations, Clark
Avenue Company, Tel.: (905) 882-4422, Fax: (905) 882-4435, Email: