Milagro Energy Inc.
TSX : MIG

Milagro Energy Inc.

June 20, 2005 09:15 ET

Milagro Energy Inc.: Operational Update

CALGARY, ALBERTA--(CCNMatthews - June 20, 2005) - Milagro Energy Inc. (TSX:MIG) is please to announce it has begun the spending of its 2005 capital budget of $15.25 million dollars with encouraging results. The company has allocated $10.3 million dollars from the budget for drilling and completion of eight wells at its Judy Creek core area of west central Alberta.

In Judy Creek, Milagro recently drilled and cased 2 wells for potential Gilwood oil. One of the wells has multi-zone potential. A third well is anticipated to be drilled before the end of June. The first well drilled is currently being production tested and completion operations for the second well are being planned. Drilling operations on the remaining 2005 wells are scheduled to recommence in September. Two of the wells to be drilled this winter will be classified as delineation/exploration wells. These wells will be placed at approximately 4 km intervals down the center of Milagros Land block to further define the extent of the Gilwood oil pool.

Drilling operations have already begun on the previously announced 9 well farm out venture in the Battle Creek area of south west Saskatchewan with the first well being cased. Milagro is not paying any of the capital costs for these wells, but is retaining an average working interest of 31% as well as operatorship of the wells after completion. The program includes 8 wells in Battle Creek area of south west Saskatchewan, and a Nisku/Mannville test at the Bittern Lake area of central Alberta.

Milagro is an exploration and production company engaged in the acquisition, exploration, development and production of oil and gas reserves in western Canada. Milagro is listed for trading on the Toronto Stock Exchange.

Contact Information

  • Milagro Energy Inc.
    Jeffrey Rekunyk
    President and CEO
    (403) 693-4000 or Toll Free 1-866-693-4022
    or
    Milagro Energy Inc.
    Brad Haack
    CFO
    (403) 693-4000 or Toll Free 1-866-693-4022
    Website: www.milagroenergy.com