EXHIBIT 99.1
On June 6, 2000, the Registrant issued the following press release:
"PYR ENERGY REPORTS CURRENT STATUS OF PRODUCTION
TESTING AT EAST LOST HILLS
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DENVER, CO, - PYR Energy Corporation (AMEX:PYR) today announced that the
following news has been released by the operator of the East Lost Hills
exploration project, Berkley Petroleum Corp. (TSE:BKP):
"The flow test portion of the production test on the Berkley East Lost
Hills No.1 well, which commenced on Wednesday May 31, 2000, was completed on
schedule on Monday June 5, 2000 at 16:00h PDT.
During the flowing periods, gas has been produced at restricted and
controlled rates up to 23 mmcfpd.
The extended test rate was 13.1 mmcfpd at a flowing wellhead pressure of
8100 psi on a 20/64" choke. The water / gas ratio was stable at 295 bbls/mmcf.
The liquid hydrocarbons / gas ratio is estimated at 75 bbls/mmcf. Final liquid
hydrocarbon rates will be determined through laboratory analysis. The reservoir
drawdown at this rate is estimated at approximately 5%. Based on this drawdown,
the reservoir open flow potential is in excess of 100 mmcfpd and the wellhead
open flow potential is estimated to be 25 mmcfpd due to current tubing
restrictions. These drawdown estimates will be confirmed when downhole pressure
recorders are recovered at the end of the build-up period which will be in seven
to ten days.
At these gas, liquid hydrocarbons and water rates, the well is highly
commercial and plans are underway to tie-in the well and begin production prior
to year end.
The tested interval, between 19,370 feet and 19,698 feet is at the base of
an estimated hydrocarbon column of approximately 2750 feet in the East Lost
Hills structure. The fact that commercial production rates have been achieved
from the base of the extensive gas column is very encouraging.
Opportunities to both reduce water production from the perforated zone or
complete further potential pay zones uphole are being reviewed. Untested zones
that flowed hydrocarbons to surface while drilling remain un-perforated in
Berkley No. 1.
Berkley No.3 commenced drilling on the west flank at East Lost Hills May
28, 2000. Further drilling at East Lost Hills, including the Berkley No. 2
location and the potential whipstock or redrill of the Bellevue 1-17R well are
intended to encounter the high deliverability reservoir at a significantly
higher structural elevation in the hydrocarbon column."
Scott Singdahlsen, president of PYR, said "We are pleased with the
production flow component of the production test and are eagerly awaiting final
results from the shut in pressure build up test. We are finally at the point in
this project where we can talk about tangible production information from the
BKP #1 and we are very excited about results. With the news from this well, we
anticipate additional activity in our San Joaquin Basin acreage where we have an
inventory of exploration projects."
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PYR Energy Corporation is a natural gas and oil exploration company with
activities focused primarily on deep natural gas exploration in the San Joaquin
Basin of California and in select areas of the Rocky Mountains. Additional
information about PYR Energy Corporation can be accessed via the Company's
website at www.pyrenergy.com.
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This release contains forward-looking statements regarding PYR Energy
Corporation's future plans and expected performance based on assumptions the
Company believes to be reasonable. A number of risks and uncertainties could
cause actual results to differ materially from these statements, including,
without limitation, the success rate of exploration efforts and the timeliness
of development activities, fluctuations in oil and gas prices, and other risk
factors described from time to time in the Company's reports filed with the SEC.
In addition, the Company operates in an industry sector where securities values
are highly volatile and may be influenced by economic and other factors beyond
the Company's control."
