We expect to drill up to 20 wells a month on leases we own in the Eastern Forest City Basin.
Stilwell, KS (PRWEB) May 11, 2006
Canary Resources Inc. (OTCPK: CYRR) (“Canary”) announced today that it has finalized arrangements for a gas pipeline tap into the Southern Star Central Gas Pipeline for Canary's coal-bed methane ("CBM") project. The 40-acre tap site is located in Miami County, Kansas, in the Eastern Forest City Basin, within Canary's 400,000 acre Area of Mutual Interest defined in the Farm-out Agreements concluded in December, 2004.
Purchasing and site preparation will begin immediately, with construction completion expected in the third quarter of 2006. During the construction period, Canary expects to begin negotiating terms for marketing its gas with wholesale natural gas marketing companies. Southern Star Central Gas Pipeline, Inc. is a natural gas transmission system spanning 6,000 miles in the Midwest and Mid-continent regions of the United States, and is one of five major gas pipelines which cross through Canary's Area of Mutual Interest in Kansas and Missouri.
Access to its own pipeline tap allows Canary to accelerate its previously announced drilling program. In anticipation of reaching a successful tap agreement, Canary has already completed 6 wells in the immediate vicinity of the Southern Star tap. Initial indications are positive: all have good gas shows and are expected to be productive wells. The wells are presently shut-in pending pipeline connection, and Canary expects to commence commercial production in the fourth quarter of 2006.
“This is an important milestone because we need assured pipeline access to accommodate an aggressive drilling program. Our site on the Southern Star line gives us that assurance, so now we can really ramp up,” commented William Chandler, Jr., President and Chief Executive Officer of Canary Resources Inc. “We expect to drill up to 20 wells a month on leases we own in the Eastern Forest City Basin.”
Canary Resources Inc. is an independent Oil and Natural Gas Company engaged in the acquisition, exploitation, production and development of oil and natural gas properties. Canary has an active leasing program and farm-out agreements covering acreage in Johnson and Miami Counties, Kansas, and in Bates and Cass Counties, Missouri, for which it is the operator. It plans to drill numerous shallow coal-bed methane gas wells in these areas on 40 acre spacing or less. The gas wells are anticipated to be drilled to depths of between 600 and 1,000 feet. Canary has offices in Houston, Texas, and Stilwell, Kansas.
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Portions of this document include “forward looking statements”, which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. We have tried, whenever possible, to identify these forward-looking statements using words such as “anticipates”, “believes”, “estimates”, “expects”, “intends”, “plans”, “potential” and similar expressions. Actual results may vary materially from management’s expectations and projections expressed in this document. Certain factors that can affect the Company’s ability to achieve projected results include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and development drilling, competition, government regulation and the ability of the Company to implement its business strategy.
Copyright ©2006. All rights reserved Canary Resources Inc.
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