Storm Cat Energy is an independent oil and gas company. Trading on the NASDAQ under the symbol SCU and on the Toronto Stock Exchange under the symbol SME, they focus on the exploration, production, and development of large, unconventional gas reserves. They look for these reserves primarily in fractured shales, coal beds, and tight sand formations. On a secondary basis, they look for these reserves from conventional formations.
The company has their U.S. and corporate office in Denver, Colorado and their Canadian office in Calgary, Alberta. Storm Cat has their producing properties in the Powder River Basin of Wyoming, and in the Arkoma Basin in Arkansas. They also have exploration and development acreage in Elk Valley, British Columbia. The company’s current total net production is 15.3 million cubic feet per day (MMcf/d).
During the second quarter of 2008, they invested $10.2 million in the Powder River Basin. This was for acquisitions, drilling and completion, permitting, staking and water management plans for the 2008 and 2009 drilling programs. This investment was also for infrastructure upgrades and well repairs. During this second quarter of this current year, they drilled 15 wells in the basin. Since then they have drilled one more. This gives the company 36 total wells drilled here this year. Near their operations in the Powder River Basin, Storm Cat also acquired approximately 14,000 undeveloped net acres in Sheridan County, Wyoming.
Storm Cat invested $6.7 million in capital in their Fayetteville Shale project in Arkansas in the second quarter of 2008. Their total operated wells drilled here are seven. The company commenced transportation of gas from their acreage in early April of 2008, and have turned their three 2007 wells to sales, as well as three 2008 wells. In Elk Valley, British Columbia, they have nine wells on production. They are continuing active discussions with third-party pipeline operators concerning the design and possible installation of a gas sales pipeline.
On August 11, 2008, Storm Cat Energy Corporation reported second quarter 2008 financial and operating results. This second quarter helped the company’s efforts to progress towards profitability. Production from their Fayetteville Shale property and their Powder River Basin assets achieved record production and revenue results for the quarter. Their production for the quarter was more than one billion cubic feet of gas, totaling 1,151.4 million cubic feet (MMcf). Storm Cat’s revenue for the quarter was $6.6 million, a 78.6 percent increase from the second quarter of 2007.
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