Expedition Energy Inc.
TSX VENTURE : XPD

Expedition Energy Inc.

October 17, 2005 14:44 ET

Expedition Energy Inc.- Operations Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 17, 2005) - Expedition Energy Inc. (TSX VENTURE:XPD) ("Expedition" or "the Company") is pleased to provide an update on its recent and planned drilling operations.

Expedition has a very active drilling program underway in the 4th quarter of 2005. The budget has been increased to provide for the drilling of 9 wells with varying interests from 50% to 100%. The program is largely focused on natural gas objectives in Central and West-Central Alberta.

At Nevis AB, Stage Two of the Company's 100% working interest coal bed methane (CBM) development project is well underway. Four additional wells have now been drilled and completion operations will begin immediately. Surface leases for pipeline tie-ins have been obtained and construction is scheduled to start within a few weeks. Expedition is very pleased with the performance of the first four (Stage One) CBM wells which have a combined deliverability of approximately 900 mcf/d. Similar results are expected from the Stage Two wells.

In West-Central AB, completion work is currently underway on the non-operated (20% interest) Deanne 6-11 well drilled earlier this year. The completion was delayed due to extremely wet conditions in the region. The Ferrier well has been completed and gas production started in August. A second Ferrier well has been licensed and is expected to spud in late October. The Company has a 50% operated interest in the Ferrier property.

In Central AB, a 100% interest well at 1-19-35-24W4M is currently drilling for deep Mannville gas objectives. Section 19 also is very prospective for shallow CBM and Belly River gas. Expedition holds all P&NG rights from surface to Basement. Two other gas prospects are planned to be drilled in Q4-2005, one in the Erskine area and one near Cessford. The Company is currently in the process of acquiring surface leases for these two wells.

In West-Central SK, heavy oil development activity is continuing in the Kerrobert area (Expedition 50% interest). A vertical well is expected to spud late today or tomorrow at B12-31-32-23W3M. This well offsets the Company's B5-31 well (drilled in Oct.2004) which produces at approximately 90 bbl/d (45 bbl/d net) with very low water cut. In September 2005, Expedition drilled and cased a horizontal Mannville heavy oil well at 7-21-33-24W3M. The well was completed and commenced production in the first week of October an initial restricted rate of 50 bbl/d (25 bbl/d net). This rate is expected to increase as pumping is optimized. Additional vertical and horizontal locations are planned for the Kerrobert area in 2006.

Expedition remains on track to meet or exceed its 2005 year end production rate of 550 boepd. With new production expected from the Nevis AB. and Kerrobert Sk. areas, year end production will be comprised of approximately 85% natural gas.

The term barrels of oil equivalent or boe may be misleading, particularly if used in isolation. The boe conversion ratio used by Expedition of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil.

Expedition Energy Inc. is an emerging Alberta based public corporation actively engaged in the exploration, development and production of crude oil and natural gas in Western Canada. The Company continues to follow its strategy of internally developing prospects, securing land in core areas, and growing predominantly through drilling. Selective acquisitions that support core area growth are also considered. The company strives to maintain a high working interest and operate properties. Expedition's shares are listed for trading on the TSX Venture Exchange under the symbol XPD.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Expedition Energy Inc.
    Scott St. John
    President and CEO
    (403) 264-1699
    (403) 264-1499 (FAX)
    Website: www.xpdenergy.com
    or
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    or
    QIS Capital Corp.
    Doren Quinton
    Investor Relations
    (250) 376-8989
    Email: info@qiscapital.com