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| April 6, 2010 |
| Open Range Energy Corp. Announces Positive Test Results for Its Second Notikewin Horizontal Well at Ansell/Sundance |
CALGARY, ALBERTA--(Marketwire - April 6, 2010) - Open Range Energy Corp. ("Open Range" or the "Company") (TSX:ONR) is pleased to announce encouraging test rates of up to 6.7 mmcf per day on its second 100 percent Notikewin horizontal well in the Company's Deep Basin play at its core Ansell/Sundance property.
The well was spud in early February and drilled to a total measured depth of approximately 4,200 metres including a horizontal leg of 1,250 metres. Drilling and completion costs were approximately $5.8 million and royalty credit recovery is estimated at $3.3 million.
In late March Open Range executed a successful multi-stage hydraulic fracture completion with nine intervals. The well was flow-tested in early April for 84 hours at initial cleanup rates of up to 6.7 mmcf per day. Flow rates over the last 24 hours of this initial test period averaged 2.4 mmcf per day at a flowing pressure of 450 psi. The well was placed on an inline test on April 4 and is currently producing at a rate of 2.0 mmcf per day plus natural gas liquids (NGL) with a flowing tubing pressure of 455 psi and flowing casing pressure of 925 psi.
Currently Open Range has three 100 percent horizontal wells (one Bluesky, two Notikewin) producing in aggregate approximately 5.0 mmcf per day plus 15 bbls per mmcf of NGL (total of approximately 910 boe per day). This represents approximately 20 percent of the Company's current production of over 4,000 boe per day, a recent production milestone that was announced in the Company's previous update on March 31.
Open Range has mapped a large potential resource in the Notikewin Formation throughout its 65-gross-section (85 percent average working interest) land base at Ansell/Sundance. To date 24 of Open Range's 45 gross multi-zone vertical wells at Ansell/Sundance include production from the Notikewin and the Company has developed a current Notikewin horizontal inventory of 20 locations, spaced at one horizontal well per prospective section.
Both recent Notikewin wells are part of the Company's successful $30 million first-half 2010 capital program, which includes:
-- Three gross (2.6 net) Deep Basin horizontal wells at Ansell/Sundance;
-- Two 100 percent vertical Deep Basin wells at Ansell/Sundance, one of
which recently tested at up to 12.0 mmcf per day from six zones with
initial production of 3.7 mmcf per day plus NGL (670 boe per day total),
with the other to be drilled after spring break-up;
-- One gross (0.375 net) successful Cardium horizontal oil well in west
central Alberta that tested on pump at 250 bbls per day of light oil;
-- One gross (0.2 net) Glauconitic Deep Basin well in west central Alberta
that recently tested at 3.7 mmcf per day plus 40-50 bbls per mmcf of NGL
and is planned for tie-in after spring break-up; and
-- Capture of carefully selected additional prospective undeveloped lands
at Ansell/Sundance.
OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY WITH FOCUSED OPERATIONS IN THE DEEP BASIN REGION OF ALBERTA.
OPEN RANGE HAS APPROXIMATELY 60.9 MILLION COMMON SHARES ISSUED AND OUTSTANDING, WHICH TRADE ON THE TSX UNDER THE SYMBOL "ONR".
Reader Advisory
This news release contains certain forward-looking statements, which include assumptions with respect to (i) production; (ii) future capital expenditures; (iii) funds from operations; (iv) cash flow; and (v) debt levels. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control. Such risks and uncertainties include, without limitation, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, Open Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Disclosure provided herein in respect of barrel(s) of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN. | |
| CONTACT INFORMATION:
Open Range Energy Corp.
A. Scott Dawson, P.Eng.
President and Chief Executive Officer
403-205-3704
or
Open Range Energy Corp.
Lyle D. Michaluk, CA
Vice President, Finance and Chief Financial Officer
403-262-9280
www.openrangeenergy.com
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| INDUSTRY: Energy and Utilities - Oil and Gas | |
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