InvestSource, Inc.: Jericho Energy Company Inc. Discusses Well Outputs

Jul 31, 2008 (M2 PRESSWIRE via COMTEX) -- JECI | Quote | Chart | News | PowerRating -- Stocks in the News: Jericho Energy Company Inc. (PINKSHEETS: JECI), CNX Gas Corporation (NYSE: CXG), Apache Corporation (NYSE: APA), Boots & Coots International Well Control, Inc. (AMEX: WEL)

Jul 30, 2008 -- Jericho Energy Company Inc. (PINKSHEETS: JECI) announced today that it has recently engaged the services of Thrust Resources, based in Texas, to perform a spot study with state-of-the-art Radiometric Plus technology on their 11,000 acre leased area located in Rush Valley, Utah. These tests were to find the exact locations for the first 11 wells to be drilled on the property. Although the final report won't be out for about 2 weeks, the initial results of these tests have been even more lucrative than the company first anticipated, with an estimated average output of between 600 and 900 barrels per well per day, according to analysts for Jericho Energy. Vice President Joseph Abdo stated, "All of us at Jericho Energy are thrilled with the results of these tests. Because Radiometric Plus has a 95% accuracy rate, we are very confident in the 600-900 barrel a day estimate. As soon as the final report is put out, we will start on the initial infrastructure at the well sites, which we are projecting to take about 60 days to complete. Jericho is right on schedule to commence drilling in November of this year."

Jul 30, 2008 -- CNX Gas Corporation (NYSE: CXG), the leading gas producer by revenue in the Appalachian Basin, reported record net income for the quarter ended June 30, 2008 of $64.3 million, or $0.42 per diluted share. This was 55% higher than the net income of $41.5 million, or $0.27 per diluted share, for the quarter ended June 30, 2007, and the highest quarterly net income in the company's three-year history. Gas production was also a record, at 18.8 billion cubic feet (Bcf), or 206.5 million cubic feet (MMcf) per day, for the quarter ended June 30, 2008. This was 26% higher than the 14.9 Bcf, or 163.6 MMcf per day, for the quarter ended June 30, 2007. It was also 18% higher than the 15.9 Bcf produced in the March 2008 quarter. Nicholas J. DeIuliis, president and chief executive officer, said, "For the second consecutive quarter, CNX Gas achieved record performance. Our net income and production in the second quarter were the highest in our three-year history. Also, our employees continued to work without a lost-time accident. For 2008, we now expect to produce 73 Bcf, which will be 25% higher than our 2007 production. The higher guidance primarily reflects our continued coalbed methane (CBM) efforts across our development plays. We also drilled four additional Chattanooga Shale wells after our successful test well. The first two wells are producing at 450-460 Mcf per day. Two additional wells are in various stages of clean up, but initial results are encouraging. We also consolidated our acreage position in the Chattanooga Shale to 235,000 net acres by adding just over 100,000 net acres. CNX Gas now has a leading acreage position as well as first-mover advantage in the Chattanooga Shale. We don't intend to relinquish either as we continue drilling in this unfolding shale play." In the Marcellus Shale, CNX Gas brought its first well online last Friday. Preliminary results from the well were favorable, with a flow rate of 1.3 MMcf per day on a 56/64" choke and 50 pounds of back pressure. Because of the strong initial reading, a 24-hour open flow test was not necessary. Instead, the well was immediately placed online where it is currently equilibrating, producing 480 Mcf per day, and generating a choke-back pressure of 2,300 pounds.

Jul 30, 2008 -- Apache Corporation (NYSE: APA | Quote | Chart | News | PowerRating) reported today that the Heqet-2 appraisal well in Egypt's Greater Khalda area is producing approximately 2,100 barrels of oil per day from the Jurassic Safa formation. Apache also said the Umbarka-174 well tested approximately 4,300 barrels of oil per day from 46 feet of perforations in the Alam El Bueib (AEB) 3D sand in a 40-year-old field also located in the Greater Khalda area. The Heqet-2 was drilled to a total depth of 14,700 feet, about one-half mile from the Heqet-1 discovery drilled in the Faghur Basin in 1991. The new well is about 66 miles southwest of Apache's large Qasr gas and condensate field and 66 miles east of the Libyan border. "Using improvements in fracture stimulation technology, we have turned a marginally economic play into a potentially significant oil accumulation. We are planning four wildcats targeting Jurassic oil pools in the Heqet and Neith South areas, and we are studying other ways to increase productivity through fracture stimulation," said G. Steven Farris, Apache's president and chief executive officer. "Heqet-2 is a good example of the opportunities to be found across Apache's 15 million acres in Egypt."

Jul 30, 2008 -- Boots & Coots International Well Control, Inc. (AMEX: WEL) announced it has signed a multi-service contract with Libya's Harouge Oil Operations Company. The new contract, valued at close to $15 million for a two year period, with optional one year extensions, provides for one hydraulic workover unit and a Safeguard prevention well control specialist for Harouge's Amal field. "In seeking economic efficiency in maintaining its field, Harouge has selected Boots & Coots' snubbing services as a viable alternative to standard workover, along with our training and risk management services," stated Jerry Winchester, president and chief executive officer. "We're excited to work with Harouge and believe opportunities to extend and bundle our services under long-term contracts and provide similar programs to other oil-producing companies will continue." The hydraulic workover and prevention services provided under the contract give Harouge in-house first responder capabilities and will help the oil company achieve its field maintenance and production objectives.

Market Wrap for July 30, 2008

Investors looked past a strong rebound in crude prices to focus on data that showed an unexpected gain in nonfarm private payrolls and word that the Fed extending its liquidity measures to Wall Street. Despite a smaller-than-expected decline in crude oil stockpiles, oil prices climbed as much as 4.3% during the session to make their largest one day advance since trending downward from historic highs reached earlier this month. Crude had actually been down more than 1%, below $121 per barrel, but finished its session near $127 per barrel, which is still almost 16% below its record high. The rebound in oil prices helped the energy sector make a 5.6% advance. Investors have rotated out of the energy sector in recent sessions, but oil's rebound induced buying in large names like Exxon Mobil (XOM 84.38, +3.48) and Chevron (CVX 87.26, +4.42). Conversely, oil sensitive industries fell out of favor. The S&P 500 automobile manufacturing index slipped 3.8%, while the Amex Airline Index dropped 4.9%. Broad-based buying was largely influenced by the latest ADP employment report that showed an unexpected 9,000 increase in July private nonfarm jobs. Meanwhile, economists were expecting a 60,000 decrease in jobs. Though the ADP report has not been consistent in correctly predicting the government's jobs data, which will be announced Friday, ADP's announcement bolstered expectations that the government's report will show a smaller-than-expected decline in employment. Also providing support to the session's optimism was news the Fed is extending the length of its Term Securities Lending Facility program through Jan. 30 and is introducing longer terms to maturity for its Term Auction Facility in the face of continued fragility in the markets. Separately, President Bush signed the housing bill into law, giving support to Fannie Mae (FNM 12.21, +0.61) and Freddie Mac (FNM 8.73, +0.31), while the SEC is extending its temporary restriction on naked short selling on financial institutions. The financial sector gained 2.0% as thrifts and mortgage players collectively climbed 4.1% and diversified banks climbed 3.8%. Investment banks and brokerages advanced 3.5%. The Nasdaq lagged the Dow Jones and the S&P 500 during Wednesday's action.

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