| ||July 10, 2006|
Production Increases Continue
| ||MBA Resources Corp. announced today that it has doubled production as a result of recently completed preliminary workover operations on its Gordon Creek project. The workover operations were conducted with its joint venture partner, Fellows Energy Ltd. Work on the project to date includes a workover on the GCS 1-19-14-8 well and a partial workover on the GCS 1A-18-14-8 well.|
The GCS 1-19-14-8 workover, which was just completed, included repairing parted rods, exposing previously perforated formations, and repositioning the down hole water pump. As a result of the workover, production on this well increased from around 65 mcf per day to over 525 mcf per day during the initial few days following the workover, and continues to increase on a daily basis.
MBA and Fellows performed the first stage of a workover on GCS 1A-18-14-8 in early May, but further work will be required to fully assess the potential level of production increases in this well.
Remedial work conducted on other wells in the field, including replumbing and reconfiguring of the water and gas systems at surface prior to undertaking full workovers, has resulted in varying production increases.
The work completed to date has resulted in production increases on the Gordon Creek field from roughly 650 thousand cubic feet per day when it was acquired by MBA in March, to a current rate of approximately 1.3 million cubic feet per day.
The Gordon Creek project hosts eight previously-drilled wells, four of which are producing. MBA and Fellows will now evaluate the prospects for workovers on up to 6 additional wells, which include 2 producers and 4 shut in wells, prior to drilling up to 20 new wells.
The workover rig has been temporarily released to other projects in the area, while MBA and Fellows monitor the production increases from the GCS 1-19-14-8 well and plan for the next round of workovers.
"We are very pleased with the results we have achieved at this early stage of our workover program. The increased production will immediately boost cash flow with virtually no incremental operating costs, since the wells are already tied in to the pipeline." stated Cameron White, President of MBA. "More importantly, the success achieved to date validates the confidence our technical team has in the Gordon Creek project. It also provides us with additional knowledge that will help us increase the effectiveness of the workover program, and set the stage for our 20 well drilling program."
The Gordon Creek project comprises 5,953 gross acres (4,879 net acres) in Carbon County, Utah and is an extension of the very successful Drunkards Wash field originally developed by River Gas Corp. and presently operated by Conoco/Phillips. The Gordon Creek field also includes an associated gas gathering system consisting of 6 miles of pipeline and a scaleable compression facility that services the project as well as adjacent production. Gas is marketed into a transmission pipeline operated by Questar Gas Resources that crosses the project acreage.
MBA Resources is a Canadian based natural resource company that owns a 50% interest in the Gordon Creek natural gas field in the State of Utah, USA. MBA's other holdings include an oil and gas exploration project adjacent to the Stoney Creek field in New Brunswick, Canada and a gold exploration project adjacent to the Sleeper Mine in Humboldt County, Nevada.
For more information, contact Mr. Cam White at 604-707-0373.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or the adequacy of this press release.
Visit our website at www.mba-resources.com
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