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SKY METALS LIMITED Capital/Financing Update 2004
65807_rns_2004-03-16_afe3e0a3-6e3c-4fba-96d1-59f61a1c2f15.pdf
Capital/Financing Update
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17 March 2004
The Manager Companies Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000
Dear Madam
RE: UPATE OF ACTIVITIES
The Directors are pleased to provide the following update of the Company's activities.
Esponda Property, Powder River Basin, Wyoming USA
Drilling has continued through the Northern winter on our two joint ventures on the Eastern Esponda block. Kennedy Oil has now drilled all twelve of its wells, whilst Western Gas Resources has just spudded the eighth and last of its wells. We are awaiting final details on several of the Kennedy Oil wells, and we expect to provide this information to the market within ten days. Details on the Western Gas program are as follows:
| EAST ESPONDA (T48N, R79W) DRILLING STATUS | ||||||||
|---|---|---|---|---|---|---|---|---|
| PLANET-WESTERN GAS | ||||||||
| WELL | STATUS (15 March 2004 - all detail in metres) | BIG GEORGE |
||||||
| No. | Depth | Top Set |
Underream | Enhanced | Producing | INTERVAL | ||
| $41 - 2$ | 708 | 684 | 685 | 706 | no | shut in | 683 | 707 |
| $12 - 2$ | 681 | 657 | 657 | 678 | no | shut in | 655 | 679 |
| $32 - 2$ | 696 | 672 | 672 | 691 | no | shut in | 667 | 692 |
| $43 - 2$ | 0 | drilling | ||||||
| $34 - 2$ | 669 | 642 | 643 | 665 | no | shut in | 639 | 665 |
| $23 - 2$ | 690 | 661 | 663 | 685 | no | shut in | 660 | 685 |
| $21 - 2$ | 713 | 2247 | 686 | 705 | no | shut in | 680 | 705 |
| $14 - 2$ | 674 | 2131 | 650 | 671 | no | shut in | 647 | 671 |
| Avq | 20.7 | Avq | 24.7 | |||||
As is evident from the table, thick and consistent Big George Coal intervals have been encountered in all wells, and all have been shut in as future producers. These wells are part of a much larger Western Gas program.
As the joint venture wells move towards production. Planet Gas will turn its attention to its 100% owned ground. Permits are being sought to drill a number of stratigraphic wells. These wells are necessary due to the sparse drill density in the axial portion of the Powder River Basin. These will be drilled to depths between 900 and 1200 metres and a complete geophysical logging suite will be performed to determine the areal extent and local stratigraphy within the lease block. It is anticipated that these holes will be drilled before the end of the June quarter.
The intent would then be to optimise the development phase of this portion of the Planet Gas lease holdings, and to commence development drilling as soon as possible afterwards.
Gippsland Basin, Victoria Australia (Planet 100%)
Currently the Company is completing data review and compilation. This largely consists of entering the data from a large number of previously drilled water and coal exploration holes into our system. The first drilling program will consist of a number of stratigraphic holes which are expected to be drilled late in the June quarter. These will be followed by core drilling and gas desorption tests.
Yours sincerely
Norman Seckold Chairman
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