CALGARY, ALBERTA--(CCNMatthews - Dec. 28, 2005) - SPITFIRE ENERGY LTD. ("Spitfire") (TSX VENTURE:SEL) announces that it is encouraged with initial completion results from a 100% working interest well in Southern Alberta. During an 18-hour casing flow-back ending at 8am Christmas Eve, a stabilizing rate of 1.86 million cubic feet of gas per day ("mmcfd") thru a 9.5 mm choke was recorded. Testing will be continued today. While Spitfire is encouraged by these preliminary results, a longer test period is required before production rates can be estimated. Plans to tie-in the well are being executed with an anticipated on-stream date in mid February 2006.
Spitfire continues with its plans to tie-in a second well in southern Alberta that tested 2 mmcfd during a 24-hour test of which it owns a 28% working interest and initial production rates are expected to be 0.3 - 0.7 mmcfd. Spitfire continues to try and secure a drilling rig to drill 4 (3.3 net) development wells at South Fosterton, Saskatchewan.
Spitfire is currently producing approximately 200 barrels of oil equivalent per day ("boed") and is on target to meet or exceed its forecasted 500 boed by its fiscal year end of March 31, 2006. Spitfire has no debt, working capital of $900,000 and access to a $3,300,000 line of credit to finance its budgeted activities.
This press release may contain forward-looking statements that are based on current expectations. There are a number of risks and uncertainties associated with the oil and gas industry that could cause actual results to differ materially from those anticipated.
FOR FURTHER INFORMATION PLEASE CONTACT:
Spitfire Energy Ltd.
Keith N. Chase
President, CEO and Director
(403) 205-3400 x224