VANCOUVER, June 1 /PRNewswire-FirstCall/ -- San Telmo Energy Ltd. (OTCBB: STUOF; TSX-V: STU) is pleased to announce that, following completion of construction on its gas pipeline and oil facility, the 14-22 well at Gordondale commenced production on May 6, 2004 at an initial flow rate of 320 barrels of oil per day (bbls/d) (42 api) and 550,000 cubic feet of gas per day. As of May 26, 2004, Gordondale is flowing at 232 bbls/d and 1.03 million cubic feet of gas per day (mmcfd), total production since startup has been 4,000 barrels of oil and 13.2 million cubic feet of gas. The current flow rate equates to 403 barrels of oil equivalent per day (boe/d) at a 6:1 conversion. San Telmo has a 73.6% WI in the Gordondale project.
In order to ensure optimum recovery at Gordondale, San Telmo has submitted a Good Production Practices (GPP) application to the Alberta Energy Utilities Board. If the application is approved, San Telmo will continue to produce the Gordondale well at current levels.
McLeod: Production Increases
Production at San Telmo's 6-18 well at McLeod has been increased to 900 mcfd plus 40 bbls/d of condensate. As of May 26, 2004, total production since the well was brought online has been 27.7 million cubic feet of gas and 670 barrels of condensate. Production at McLeod remains restricted due to limited compression in the area. Discussions are ongoing with the third party operator and San Telmo believes this issue will be resolved in the near future. Future production levels are expected to increase to approximately 2 mmcfd. San Telmo has a 70% WI in the McLeod project.
ABOUT SAN TELMO ENERGY LTD.
San Telmo Energy Ltd. is an emerging oil and gas company with an experienced management team. Operated through its wholly owned subsidiary San Telmo Energy Inc. of Calgary, Alberta, San Telmo Energy Ltd. is focused on acquiring, developing and producing proven developed and underdeveloped reserves which offer long term value for the company.
FORWARD-LOOKING STATEMENT
This release may contain forward-looking statements, within the meaning of the "safe-harbour" provision of the Private Securities Litigation Reform Act of 1995, regarding San Telmo Energy's business or financial condition. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of the company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
San Telmo Energy Ltd.
In order to ensure optimum recovery at Gordondale, San Telmo has submitted a Good Production Practices (GPP) application to the Alberta Energy Utilities Board. If the application is approved, San Telmo will continue to produce the Gordondale well at current levels.
McLeod: Production Increases
Production at San Telmo's 6-18 well at McLeod has been increased to 900 mcfd plus 40 bbls/d of condensate. As of May 26, 2004, total production since the well was brought online has been 27.7 million cubic feet of gas and 670 barrels of condensate. Production at McLeod remains restricted due to limited compression in the area. Discussions are ongoing with the third party operator and San Telmo believes this issue will be resolved in the near future. Future production levels are expected to increase to approximately 2 mmcfd. San Telmo has a 70% WI in the McLeod project.
ABOUT SAN TELMO ENERGY LTD.
San Telmo Energy Ltd. is an emerging oil and gas company with an experienced management team. Operated through its wholly owned subsidiary San Telmo Energy Inc. of Calgary, Alberta, San Telmo Energy Ltd. is focused on acquiring, developing and producing proven developed and underdeveloped reserves which offer long term value for the company.
FORWARD-LOOKING STATEMENT
This release may contain forward-looking statements, within the meaning of the "safe-harbour" provision of the Private Securities Litigation Reform Act of 1995, regarding San Telmo Energy's business or financial condition. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of the company.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
San Telmo Energy Ltd.
