Purcell Energy Ltd.

Purcell Energy Ltd.

September 08, 2005 18:59 ET

Purcell Energy Drilling Fort Liard Development Well

CALGARY, ALBERTA--(CCNMatthews - Sept. 8, 2005) - Purcell Energy Ltd. (TSX:PEL) announces that it is currently drilling a 24-percent interest development well on its Fort Liard natural gas property in the southern N.W.T. Well test results are expected in October 2005. A successful result would have a significant impact on production from the Fort Liard property. In 2006, Purcell plans to drill another development well on its 60-percent owned acreage. The potential for increased recovery factors for the pool provides significant upside, both in production and reserves.

Pursuant to the reorganization and asset sale announced by Purcell on August 2, 2005, the successor company to Purcell will retain the Fort Liard property. The successor company will be a deep-gas focused junior exploration and production company. Purcell intends to have the successor company implement, if circumstances permit, a dividend policy whereby a portion of the Fort Liard cash flow will be paid to shareholders on a quarterly basis. The Company suggested previously it was possible that, after the reorganization, the successor company could pay dividends in the fourth quarter of 2005 or the first quarter of 2006. With the current drilling operations at Fort Liard and another development well planned for 2006, Purcell expects the successor company will implement a dividend policy most likely not before the end of the second quarter of 2006.

Purcell also announces that Lawrence Backmeyer has resigned from his position as Purcell's Vice President, Engineering. Mr. Backmeyer will continue to provide consulting services to Purcell pending the reorganization and asset sale. Purcell wishes to thank Mr. Backmeyer for his contribution to the growth of the company over the past seven years.

Contact Information

  • Purcell Energy Ltd.
    Jan M. Alston
    President & C.E.O.
    (403) 269-5803
    Purcell Energy Ltd.
    Bruce Murray
    (403) 269-5803
    Iradesso Communications Corp.
    Peter D. Knapp
    (403) 503-0144 ext. 202