cpc utah results confirm significant natural gas r

November 2, 2005
CPC UTAH RESULTS CONFIRM SIGNIFICANT NATURAL GAS Resource
SUCCESSFUL COMPLETION TEST OF RIDGE RUNNER 13-17 WELL IN CLEAR CREEK, UTAH AT 3.1 MILLION CUBIC FEET OF GAS PER DAY
The company is pleased to announce the successful completion of the Ridge Runner 13-17 in the 68% owned Clear Creek project in central Utah. The Ridge Runner 13-17 (“RR 13-17”) was drilled and fracture stimulated in 2003, but was never fully tested.
Following completion of the RR 13-17, commenced by CPC in September, the well was production tested and flowed 3.1 million cubic feet (“mmcf”) per day over an extended testing period.
Commenting on the successful completion of the RR 13-17, Jeffrey Clarke, CPC Chief Executive Officer said: “The significance of the successful completion of this well is that it confirms the existence of commercial gas in the portions of the Ferron reservoir not previously drained by wells drilled in the 1950’s. It is the first step in the confirmation of a potentially large resource as previously indicated by independent reservoir engineers. This well supports Management’s initial geological theory and should lead to repeatable, low risk value creation by CPC.
Carpenter’s net share of this test is approximately 1.6 mmcf of natural gas per day which - added to the recent recompletions in East Texas - will give the Company a production base of 3.3 mmcfe per day when all wells are tied in. This provides a strong foundation to a build up in production and cash flow and should allow the Company to achieve critical mass as we exit calendar year 2005, just 12 months after the Company was restructured.
As can be seen from the various press releases over the past 10 weeks, the Company’s development programs in East Texas and Utah are ramping up and are continuing to show positive and repeatable results, which will ultimately manifest themselves in increases in proven reserves, production and operating cash flow.”
Carpenter Pacific Resources is aggressively pursuing a low risk strategy to increase reserves and production of non-conventional natural gas in the onshore USA. The company plans to develop low cost reserves by exploiting mature reserves and finding new reserves in existing producing areas. Favorable industry fundamentals, including record high natural gas prices, advances in drilling, completion and fracture stimulation techniques, coupled with ready access to infrastructure have allowed the company to pursue several attractive investment opportunities. The company currently has in its portfolio an inventory of two to three years of drilling opportunities, which if successful could create a substantial reserve base.
For further information contact:
North American Contact: Mr Jeff Clarke
Managing Director & CEO
Ph: +1 214 244 7690
Email: [email protected]
Australian Contact: Mr Peter Collery
Executive Director and Company Secretary
Ph: 03 8862 6466
Email: [email protected]