PRB Energy, Inc. ("PRB" or the "Company") today announced that it drilled its first well to the Niobrara formation in the Denver-Julesburg (D-J) Basin in eastern Colorado and the electric logs indicate that, upon completion, the well will be commercial.
The drilling rig ran and cemented casing and has moved to the second location.
After drilling the first six to seven wells of the 14-well program, the Company will begin fracing and completing the wells.
In addition, PRB has entered into an agreement with another company whereby PRB will be paid $1.9 million for its rights to a gas processing plant that was to be built in North Dakota. The payment reimburses the Company for its efforts associated with the planning and construction of the plant and pays PRB for its previous design efforts and its rights to the plant.
With respect to the RMG transaction that was announced on May 17, 2007, the Company received the second $500,000 payment on June 21, 2007.
Robert W. Wright, PRB's Chairman and CEO, noted, "We are very pleased with the indications received from the electric logs on the first D-J Basin well. We have accomplished much during the first six months of owning this property and believe that this acquisition will prove to be a significant asset for PRB. Regarding the Company's cash position, RMG has paid PRB $1 million toward the $3.25 million owed, with the balance due in October. In addition, in July a minimum of $1 million deposited to cover plugging and abandonment liabilities as a result of the Pennaco transaction in 2006 will be released and we are awaiting the payment of $1.9 million for the plant. This capital will be deployed to the Niobrara drilling program in the D-J Basin."
About PRB Energy, Inc.
Having commenced operations in January 2004, PRB Energy has evolved into an exploitation and gathering company with development activities in the Rocky Mountain States. The Company is vertically integrated, combining upstream exploitation and production as well as midstream gathering and processing. This model is intended to increase PRB Energy's access to and acquisition of high-potential development properties at attractive prices, delivers cost savings and provides additional revenue through the gathering of third-party gas.
Forward-Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Company's Registration Statement on Form S-3/A recently filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
Company Contact: or Investor Relations Counsel:
PRB Energy, Inc. DRG&E
Robert W. Wright, Chairman and CEO Jack Lascar/Lisa Elliott
(303) 308-1330 (713) 529-6600
investors@prbenergy.com jlascar@drg-e.com/lelliott@drg-e.com
Source: PRB Energy, Inc.
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