Petromin Increases Production at Morningside Oil and Gas Project-One of the Company's Five Producing Properties in Alberta, Canada
Monday, 18 September 2006
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 18, 2006) - Petromin Resources Ltd. (TSX VENTURE:PTR) is pleased to announce that it has put its second Glauconitic gas well into production on its lands in the Morningside Area of Central Alberta. The Initial production rate is approximately 600,000 cu. ft. of gas per day with 80 barrels of condensate. The two wells now have a combined production rate of over one million cu. ft. of gas per day and 80 plus barrels of condensate. The Company has a gross overriding royalty in both wells. The first well is also convertible to a 10% working interest after payout, which is expected to be reached shortly thus further increasing revenues from this area. The company also retains an interest in lands directly offsetting an oil well currently producing in excess of 100 barrels of oil per day. Additional drilling is being considered to evaluate potential in the Colony, Lower Glauconitic and Basal Manville Sands.
Update of Central Alberta four other producing Properties:
1. Frog Lake Oil Project: Petromin has three producing oil wells on its' Frog Lake lands in Alberta with combined production of approximately 300 barrels of oil per day from the Mclaren Channel Sand. The company operates these wells and retains a 45 to 60% working interest. A fourth drilling location is planned on the Company's lands.
2. Redwater Project: Petromin currently has six producing oil wells in the Redwater Area of Central Alberta with a current combined gross production rate of approximately 100 plus barrels of oil equivalent per day (boe/day), net 30 boe/d. With some wells nearing payout soon, the Company will have the option to convert gross overriding royalties to working interests thus further increasing revenues as the wells payout. Three addition well locations are being assessed for further drilling. The Company also retains a 100% working interest in the deeper zones and is reviewing the 3-D seismic on the lands for deeper Leduc D-3 objectives similar in geology to the adjacent giant Redwater Oil Field, which has produced in excess of One Billion Barrels of Oil.
3. Gilby Project: The Lower Manville Gas Well located on Petromin's lands in the Gilby area of Central Alberta is currently producing in excess of 600,000 cu. ft. of gas per day. The well also contains potential Colony and Glauconitic gas zones which are being assessed for dual completion. Petromin retains a 16.67% working interest in the lands.
4. Calmar Project: The Company's producing Basal Manville gas well completed in the Calmar/ Leduc area of Central Alberta is being evaluated for additional potential in the Ostracod and Glauconitic zones. Re-completion is anticipated in the upper zones and the company will retain up to a 52% working interest in the zones.
In total, PETROMIN'S COMBINED NET PRODUCTION RATE is currently 230 plus boe/day.
ON BEHALF OF THE BOARD OF DIRECTORS
Kenny W. Chan, Chief Executive Officer
The Canadian Venture exchange has neither approved nor disapproved the information contained herein.