broker review expects great things

Carpenter Pacific Resources Limited
Huntington-2H and Harris-1 results are very encouraging
10 March 2005 300 Energy
1010
17 February 2005 Scott Ashton
+612 9226 0051
[email protected]
The first two wells drilled at the Jefferson-McLeod Project
Area (CPC 30%) have been very successful and are
encouraging for the upcoming drilling program. Up to 20
wells are likely in east Texas and Utah, targeting both
conventional and unconventional gas plays. Continued
success will underpin near-term cash flow and growth.
Huntington-2H was successfully sidetracked for c.987ft and
encountered gas in the Upper Pettit reservoir. Results are
very encouraging for future drilling and establishing early
cash flow. Pre-drill flow rate expectations were c.2mmcf/d.
The better than expected Huntington-2H results are likely to
optimise the upcoming drilling program, with a shift away
from numerous vertical wells, towards more highly
productive horizontal well completions.
The second well, Harris-1, was a re-completion of an
existing well. The primary objective, the Pettit reservoir,
was successfully fracture-stimulated and is producing at
enhanced rates of c.600mmcf/d.
Th Harris-1 results are encouraging for the upcoming
Childers-1 and Davis-1 wells and validates CPC's strategy
of utilising new completion methods in low-pressure
reservoirs.
CPC have identified in excess of 50 prospects and leads
and plan to have an additional 20,000 acres of land leased
by 3Q05. Over the next 18 months up to 17 wells are likely;
many of which have multiple stacked pay zones (15-25)
from depths of 6,400-12,000ft.
At the Helper Project in Utah (CPC 72.5%) the
Kenilworth-RR1 and Kenilworth-RR2 wells are expected to
commence by the end of the week.
These wells will be drilled sequentially, with each expected
to take about 4-5 days to drill, with completion and testing
taking a further 4-6 weeks. Pre-drill flow rate expectations
for each well are conservatively estimated to be
c.250mcf/d.
At present CPC has about A$10m in cash and has
sufficient funds for the current drilling program and further
lease acquisitions.
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