This morning, the TSX Venture market saw Stealth Ventures (TSX.V: SLV) take off into the stratosphere as investors embraced the news of the company's $20 million best efforts financing to be led by SMH Capital (NASDAQ:SMHG) of New York. The stock is up 60% Monday morning from its Friday close of $0.75.

Stealth will direct the money to finance and accelerate continuing development activities on Stealth's Colorado group shale gas properties. The development program in Wildmere, Alta., has shown fundamentally sound production numbers and with rising prices for natural gas it remains Stealth's key corporate focus for solid growth in 2008 and years to come.

According to the company's press release of March 14 earlier this year:

"Stealth Ventures Ltd. has developed Alberta's first commercial shale gas resource play on its Wildmere property in the Colorado group shales. The Alberta Energy Resource Conservation Board (ERCB) recognizes Stealth's operations as shale gas exploitation and the company has and will continue to work closely with the ERCB on its Colorado shale gas properties. The Colorado group is locally a thick, organic-rich, biogenic, gas-charged shale which covers a large part of eastern Alberta.

In accordance with disclosure requirements provided by National Instrument 51-101 standards of disclosure for oil and gas activities, the company has received and is filing its 2007 independent reserve evaluation report evaluated by Sproule Associates Limited, which highlighted:

• From wildcat exploration play in Wildmere to 12.4 billion cubic feet (2.07 million barrels of oil equivalent) proved plus probable shale gas reserves booked in 2007 exclusively through the drill bit on 39 gross (29.25 net) wells delineated over 15 townships of aerial extent;
• Proved plus probable reserve life index of 15.7 years for Wildmere shale gas property;
• Proved plus probable finding and development costs of 13.68 per boe;
• Landholdings in the Wildmere area comprise 122 gross (83 net) sections of land. This land has immediate four wells per section spacing and is expected to be developed on no less than eight wells per section.

Shale gas development in Alberta is at its infancy. Stealth has been methodically researching and testing technology to exploit the Colorado, and the company's rapid growth will be based on this initial success. The company has completed the majority of exploratory drilling and core testing and will now focus on increasing efficiencies available in basic development drilling. Stealth has completed the first 10 wells of its projected 80-well program for 2008 and management feels confident that this pace of drilling can be increased in the future.

Current competitive pricing in the drilling services market, as well as a bullish long-term outlook in natural gas pricing, will motivate the company to aggressively pursue development. In addition, the Colorado shale gas properties are classified as low-productivity gas wells by the ERCB. Because of this Stealth will enjoy lower royalties starting in 2009, based on production tiers used in the government's sliding-scale royalty regime (which is based on rate and price per thousand cubic feet).