PYR Energy Provides Strong Operations Update
04 October 2006 - 12:15AM
PR Newswire (US)
DENVER, Oct. 3 /PRNewswire-FirstCall/ -- PYR Energy Corporation
(AMEX: PYR) today announces an update on recent Company operations.
At the Nome Field, in Jefferson County, Texas, the Nome-Long #1
well has reached total depth of 15,800 feet. Based on log analysis,
the Company believes that the well has found significant pay in the
upper Yegua (EY-3) sandstone at a measured depth of 14, 200 feet.
Multiple wireline tests indicate formation pressure averaging
approximately 12,700 psi in this zone. Additional pay was logged in
shallower Yegua zones. PYR expects the operator to commence
completion operations and subsequent testing of the indicated pay
zone within the next few weeks. PYR is participating with an 8.33%
working interest. This well is subject to the previously disclosed
net profits interest owned by the Venus Exploration Trust. In
Jefferson County, Texas, the Wall #1 well, a proved undeveloped
(PUD) location offsetting the Maness GU#1 well, has reached total
depth and completion operations are in progress. Based on log
analysis, this well found approximately 20 feet of net pay in the
middle Yegua zone Doyle sandstone at a depth of 14,050 feet.
Wireline tests indicate gas production and formation pressure
averaging approximately 11,645 psi. An additional 10 feet of net
pay were logged and tested in shallower zones. The Company
anticipates that additional PUD locations should be drilled after
the first of the year. PYR is participating for 17.5% working
interest in this development well. This well is subject to the
previously disclosed net profits interest owned by the Venus
Exploration Trust. At the Madison project in Jefferson County,
Texas, the Maness Gas Unit #1 well, which had recently undergone an
extensive and complicated workover during the summer to replace
production tubing damaged by corrosion and scaling, is flowing at
475 thousand cubic feet of gas and 200 barrels of oil per day to
sales at this time. The well continues to build pressure and
volume, and we expect the well to continue to improve. The Company
is participating with 12.5% working interest. This well is subject
to the previously disclosed net profits interest owned by the Venus
Exploration Trust. In the Wilburton Field in Latimer County,
Oklahoma, the Scharff #7-1 was recently completed and is producing
approximately 16 million cubic feet of gas per day from a total of
181 net feet of commingled pay in the Cecil, Shay, and Wister B
sandstone at measured depths ranging from 11,830 to 14,222 feet
Four shallower zones behind pipe contain a total of approximately
48 net feet of pay, based on log analysis. Completion has commenced
on the Scharff #8-1. This well has found approximately 112 net feet
of pay in the Cecil sandstone at a measured depth of 11,300 feet,
based on log analysis. Additionally, an approximate 44 net feet of
pay was logged in shallower zones. The Scharff #6- 1 and #5-1
continue to produce at 6 million and 25 million feet of gas per day
respectively. PYR owns a 2.42% working interests in each of the
Scharff # 5- 1, 6-1, 7-1, and 8-1 wells. At the Mallard project in
Uinta County, Wyoming, three and one-half inch tubing has been
successfully installed inside of the seven inch casing of the
well-bore for the # 1-30 Duck Federal well. Currently the operator
has encountered difficulties in removing a retrievable mechanical
plug in the tubing. This plug was installed for safety reasons. The
well is currently shut-in pending the arrival on location of the
proper equipment for complete removal of this plug. The Company
expects the retrieval operation to occur within the next few weeks.
As a result of this difficulty, along with the shut-down for the
actual tubing operation, the well has been on and off-line during
the last two months. The 3D seismic the Company is participating in
to define future drilling locations in this area should be
completed by the end of this month. The Company is participating
with 28.75% working interest in the #1-30 Duck Federal well and 3-D
seismic. At the Bayou Duralde Prospect in Evangeline Parish,
Louisiana, the Company has participated in the completion of the
Fontenot #1 well. The well has been drilled and cased to a total
depth of 10,650' to evaluate the Cockfield and Frio formations. The
operator has constructed surface facilities and is currently
building connections to sales lines in anticipation of extended
testing of the well to determine its commerciality. The Company has
participated with a 15% working interest in this well. This well is
subject to the net profits interest owned by the Venus Exploration
Trust. Commenting on the operational results, Mr. Ken Berry, PYR's
CEO, stated, "We are very encouraged by our continued successful
drilling results in Jefferson County, Texas and expect the
Nome-Long and Wall wells to be significant producers to our
portfolio. We look forward to the day when we are able to announce
a stabilized flow rate from the #1-30 Duck well located in Uinta
County, Wyoming. The downtime on the Maness well in Jefferson
County, Texas, combined with the fluctuating production from the
#1-30 Duck Federal well, will cause PYR's production for the fourth
quarter to be less than the previous quarter. Overall, we are very
pleased with the outcome of our recently drilled wells, as the
Company continues to establish new reserves and increase the value
for the shareholders in spite of the current decline in natural gas
prices." PYR Energy will host a breakfast table at the IPAA OGIS
West Annual Oil & Gas Conference to be held October 4-5, 2006
at 7:00 a.m. PDT at the Palace Hotel in San Francisco. Denver based
PYR Energy is an independent oil and gas company primarily engaged
in the exploration, development and production of natural gas and
crude oil. At the current time, PYR's activities are focused in
select areas of the Rocky Mountain region, Texas and Oklahoma
Panhandle, East Texas, and the Gulf Coast. Additional information
about PYR Energy Corporation can be accessed via the Company's web
site at http://www.pyrenergy.com/. This release contains
forward-looking statements regarding PYR Energy Corporation's
future plans and expected performance based on assumptions the
Company believes to be reasonable. A number of risks and
uncertainties could cause actual results to differ materially from
these statements, including, without limitation, the success rate
of exploration efforts and the timeliness of development
activities, fluctuations in oil and gas prices, and other risk
factors described from time to time in the Company's reports filed
with the SEC. In addition, the Company operates in an industry
sector where securities values are highly volatile and may be
influenced by economic and other factors beyond the Company's
control. This press release includes the opinions of PYR Energy and
does not necessarily include the views of any other person or
entity. This release may not have been reviewed or approved by the
operator and/ or participants in any of the projects discussed.
DATASOURCE: PYR Energy Corporation CONTACT: Kenneth R. Berry Jr,
CEO, or Tucker Franciscus, VP, both of PYR Energy Corporation,
+1-303-825-3748 Web site: http://www.pyrenergy.com/
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