Exhibit 99.1
Cadence Resources Corporation
an emerging US energy company
[CADENCE LOGO]
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FOR IMMEDIATE RELEASE: June 29, 2004 04-04
CADENCE RESOURCES' ANNOUNCES PROGRESS AT LOGANSPORT NATURAL GAS PROJECT
DRILLING OF NEW OIL WELL IN TEXAS
WALLA WALLA, WA: Cadence Resources Corporation, an energy production and
development company (OTC-BB: CDNR), announced today that its Logansport natural
gas project in De Soto Parish, Louisiana has achieved record average production
in excess of 3,600 mcf per day so far in June. Cadence's net share is
approximately 30%.
During the first nine months of commercial operations at Logansport, Cadence and
its partner, Bridas Energy USA have drilled and completed thirteen wells of
which twelve are currently producing. The latest well, the Billingsley #28-1, is
expected to begin production in mid-July once additional pipeline capacity has
been secured.
The Martin-Timber #27-2 commenced production in late May, averaging in excess of
1,300 mcf per day during the first week. The J.B. Barr #28-2 started in mid-June
and has averaged approximately 1,100 mcf per day during its first nine days of
production. Based on the well logs, Cadence anticipates that the Billingsley
#28-1 will be comparable to these two wells.
The wells drilled so far have enabled Cadence to define the most productive
areas within the approximately 5,000 acre property. The main target horizons are
the Cotton Valley and the shallower Hosston formation. In addition, drilling has
identified opportunities to twin the deeper wells targeting shallow sands such
as the Paluxy - the J.B. Barr #28-2 was the first such well. The Company
believes that the best pay will be in the northern part of the property.
Completion in the Hosston has proved more difficult that in the other horizons.
Cadence and its joint venture partner are continuing to evaluate different
completion techniques seeking to improve the production. In addition, there are
opportunities to plug the wells and complete in shallower sections. However, two
of the wells, the Leon Gamble #33-1 and the Cowdin #27-1 have not achieved rates
of production necessary to recover their costs and the Company intends to take
an impairment on these two wells at June 30, 2004.
In other news the Company will begin drilling a new oil well, the Cadence D-1,
on the Waggoner Ranch located in Wilbarger County, Texas. The Company is
targeting oil-bearing formations and pinnacle reefs at about 3,350 feet in
depth. The formations being targeted are the Middle Canyon, Upper and Lower
Milham, and Dyson. Cadence's first five wells on the Ranch have been producing
steadily at approximately 100 barrels per day and the Company is seeking to add
significantly to this production with the new well.
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OFFICES TEL FAX
6 East Rose Street, Walla Walla, WA 99362 (509) 526-3491 (509) 526-3292
1 West Street, Suite 3206, New York, NY 10004 (212) 217-2073 (212) 217-2076
11211 Katy Freeway, Suite 400, Houston, TX 77079 (713) 655-8800 (713) 358-8446
www.cadenceresources.com
Cadence Resources Corporation
an emerging US energy company
[CADENCE LOGO]
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The Company has also completed about 70% of a 3-D seismic program covering more
than 3,600 acres of leases on the Waggoner Ranch. The results from this program
will be available by mid-August and are expected to further define at least four
new structures which have already been identified as targets by the Company's
consulting geologists.
Certain statements contained herein may contain forward-looking statements that
involve risks and uncertainties. Therefore, actual results may differ materially
from those projected or implied. As a result, these forward-looking statements
represent the Company's best judgment as of the date of this news release.
Contacts: John Ryan (843) 263-1169 or Douglas Newby (646) 879-5970