CALGARY, Dec. 6 /CNW/ - Stealth Ventures Ltd. (the Company) is please to
announce that it expects to exit the 2007 drilling campaign with a production
rate of more than 300 BOE/day. With the majority of its exploration completed
in the 2007 drilling program, the Company is gearing up for an aggressive 2008
campaign with a total of 80 shale gas wells to be drilled in the Wildmere area
of Alberta. The program will be beginning in mid-January with 12 wells to be
completed prior to spring break-up and the remaining wells to commence in the
summer of 2008. The Company has completed its first round of development
drilling which was both under budget and ahead of schedule. Full-cycle costs
continue to decrease in the competitive pricing market for services and the
Company expects this trend to maintain into the new year with a continued
decrease in capital costs.
In the fall of 2007 the Alberta Government announced that it would be
making changes to the royalty regime which would affect the Crown royalties
paid for oil and natural gas. These changes were finalized in late October,
and on the positive side, the Government acknowledged unconventional resources
as a key part to the future success of Alberta's oil and gas development. For
the Company's shale play this is going to mean a decrease in royalties paid
from an average of 13% to as little as 5% when the new regime is implemented
January 1, 2009. The Company's Colorado Shale gas properties are classified as
low productivity gas wells for the production cutoffs used in the Government's
sliding scale royalty regime which is based on production rate and the price
of natural gas. This will have positive fiscal effects for the Company up to a
pricing point of $11.00/MCF. If the price increases above $11.00/MCF the
Company will pay an additional 1 to 6% from the current royalty structure.
In addition, the Government will be implementing a shallow rights
reversion program which may in the future enable the Company to access
additional lands for plays like the shallow Colorado Shale which have
previously been held inactively by deeper production. The Company believes
that these Government initiatives, coupled with the strong production results
from the Wildmere property, provide a solid platform for long-term corporate
growth in 2008 and years to come.
Stealth is a Calgary-based junior oil and gas Company whose expertise and
focus is on unconventional gas reserves including CBM, shale gas and tight gas
STEALTH VENTURES LTD.
"W. Robert Bell"
Per: W. ROBERT BELL
Chief Executive Officer
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: W. Robert Bell, CEO, Mark J. Roth, CFO, Derek
Krivak, COO, Stealth Ventures Ltd., Tel.: (403) 514-9998, Fax: (403) 514-9995,