Galaxy Energy Provides Operational Update
July 24 2006 - 6:17PM
PR Newswire (US)
DENVER, July 24 /PRNewswire-FirstCall/ -- Galaxy Energy Corporation
(AMEX:GAX) announced today an update on its activities in the
Piceance Basin and the Powder River Basin. The Piceance Basin The
Company controls approximately 6,175 (1,545 net) undeveloped acres
in the Piceance Basin through its wholly owned subsidiary, Dolphin
Energy Corporation and in partnership with Exxel Energy Corp. The
Company currently has drilling or completion activities underway on
four of its operated wells in the basin. In the Biscuit Ranch
10-31D well, all completed zones within the overall interval from
7294' to 8462' have now been commingled, 2 3/8" production tubing
has been installed, fracture treatment fluids have been partially
recovered, and gas coming from the well has been flared. The well
is currently shut in preparing to run a wireline production log.
The Company plans to move in a completion rig to lower the tubing
string, check for sand fill across perforated and treated intervals
and continue flowing the well to complete clean up. The Company has
a 25% working interest in this well. Completion activities are
underway in the Mulvihill 15-32D well, with the first stage
hydraulic fracture treatment having been completed within the
overall interval from 8514' to 8818'. Approximately 40% of the
treatment fluids have been recovered while flowing the well back up
the 4 1/2" casing. The Company is preparing to set a temporary
bridge plug and move up hole for second stage hydraulic fracture
treatment. The Company will have an 18.75 to 25% working interest
in this well, depending upon a participation election by an
unrelated working interest owner. After reaching total depth of
9373', the Purkey Ranch 13-31B experienced hole cave-in problems in
its shallow intervals, which have precluded the running of 4 1/2"
production casing to total depth. The Company is currently
preparing to set a cement plug at approximately 3400' and plans to
sidetrack the hole or replace it. The Company has a 25% working
interest in this well. The Company is currently drilling the BR
03-03B Biscuit Ranch directional well, at which 8 5/8" surface
casing has been set and cemented to a depth of 1150'. This well is
currently drilling ahead below 6600' with the directional drilling
having been completed and the wellbore back to its vertical
trajectory. The Company has a 25% working interest in this well. At
this time, it is too early to estimate initial flow with respect to
any of these wells. In addition, the Company, through Dolphin, has
varying working interests in several non-operated wells. These
non-operated wells currently include one producing well operated by
Williams Production RMT Company, two wells operated by Bill Barrett
Corporation which are in the completion phase, as well as one well
in the completion and evaluation phase, which is operated by Antero
Resources Company. The Powder River Basin In Sheridan County,
Wyoming, dewatering operations continue from the Company's Pipeline
Ridge completed producing wells. Increased water handling capacity
is planned for this area with the implementation of a managed
irrigation project on adjacent private property, which will include
installation of at least three center pivot sprinkler units. Based
on the results of the Pipeline Ridge project, the same approach for
handling of increased produced water volumes will be considered for
the Leiter and Ucross areas of Sheridan County, where the Company
currently has 49 wells in various stages of completion with
inadequate water handling capacity for the projected dewatering
rates. The Company's producing wells located on the eastern side of
Wyoming, in Campbell County, continue to generate production and
gas sales, currently at the rate of 825 mcf per day. About Galaxy
Energy Galaxy Energy Corporation, a development stage oil and gas
exploration and production company, is focusing on acquiring and
developing coalbed methane in the Powder River Basin of Wyoming and
other unconventional natural gas properties in the Piceance Basin
of Colorado, in addition to exploration activities in Germany and
Romania. The Company conducts its exploration activities through
two wholly owned subsidiaries, Dolphin Energy Corporation and
Pannonian International, Ltd. Forward Looking Statement This press
release consists of forward-looking statements regarding the
intent, belief or current expectations of the Company and its
management. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve a number of risks and uncertainties, and actual results
could differ materially from those indicated by such forward
looking statements. The Company assumes no obligation to update the
information contained in this press release, whether as a result of
new information, future events or otherwise. Please refer to the
Company's filings with the United States Securities and Exchange
Commission for discussions of risks and uncertainties found in
Forms 10-K (annual report), 10-Q (quarterly report) and other
filings. Additional information may be found at the Galaxy Energy
Corporation Web site, http://www.galaxyenergy.com/ or by calling
Brad Long, Investor Relations/Galaxy Energy at (800) 574-4294, Bevo
Beaven or Warren Laird of CTA Public Relations at (303) 665-4200,
Tina Cameron, Renmark Financial Communications at (514) 939-3989 or
Kathleen Heaney (203) 803-3585 of Integrated Corporate Relations.
DATASOURCE: Galaxy Energy Corporation CONTACT: Investor Relations,
Brad Long of Galaxy Energy, +1-360-945-0395, or +1-800-574-4294; or
Bevo Beaven, Sr. Vice President/GM, or Warren Laird, Senior Account
Executive, both of CTA Public Relations, Inc., +1-303-665-4200, for
Galaxy Energy Corporation Web site: http://www.galaxyenergy.com/
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