Admiral Bay Resources Inc. said Friday that the company’s natural gas production has reached 1,228 Mcf/d and continues to increase. The new sales point servicing the Shiloh Project in Neosho and Allen Counties, KS is presently handling over 938 Mcf/d, up from 550 Mcf/d. The Canadian company reported that gas production from the coal bed methane project continues to increase as the newly drilled wells proceed through their expected dewatering process. Seven additional wells are expected to be connected to the sales line over the course of the next three weeks. The balance of the company’s gas production is generated from the Devon, Mound Valley and Quest projects. At the Shiloh project, several coal bed methane and shale gas only wells have seen substantial production increases, since being put online. The Johnson 10-23 well had initial production of 60 Mcf/d. After being produced for only seven days, production has increased to a sustained rate of 110 Mcf/d. Admiral Bay has an additional seven wells that are in the process of being completed and/or being connected to the pipeline. These wells are expected to be in production over the next three weeks. “Admiral Bay now has the critical mass for revenues to contribute strongly to future growth,” said Admiral Bay President Steven Tedesco. “We are comfortable that we are understanding the wells much better, enabling more rapid progress on completions.”

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