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Exall Energy Corporation (TSX: EE - News;
"Exall" or the "Company") is pleased to announce the
results of the wells drilled during the 2010 fall drilling season.
Highlights: <<
- Two of the four planned wells offsetting the previously announced
discoveries on the Marten Mountain Gilwood "A" Sand and the
Marten
Mountain Gilwood "B" Sand trends have been drilled during the
fall
drilling season,
- One well has been completed and swab tested at an average of 384
barrels
of oil per day of 39° API sweet oil over a three day test period
(276
BOEPD net to Exall),
- The final 24 hour swab rate averaged 420 barrels of oil per day
(302
BOEPD net),
- The completed well is tied in and on production through the Exall
facility,
- Corporate production capability is now approximately 2,000 BOEPD,
current production remains in the order of 1,500 BOEPD to 1,600 BOEPD,
and
- Completion operations are continuing on the second well.
>>
Marten Mountain Project
The 12-25 Gilwood "B" Sand discovery well previously announced by Exall
has been offset with an additional horizontal well (07-25) resulting in
another oil well. This 07-25 Gilwood "B" Sand well has been completed and swab
tested an average of 384 barrels of 39° API sweet oil (384 BOEPD, 276 BOEPD
net) over a three day test period. The final 24 hour swab test rate averaged
420 barrels of oil (302 BOEPD net).
The 07-25 Gilwood "B" Sand well was drilled from the same surface
location as the 12-25 Gilwood "B" Sand discovery well and was immediately tied
into the Exall pipeline completed in Q4 of 2009. The Company had previously
constructed a tie-in point for additional wells on the pipeline to expedite
tie-in operations. The 07-25 "B" Sand well will be produced using a
submersible pump to maintain optimum production rates, during the New Oil Well
Production period, of approximately 629 BOEPD (452 BOEPD net).
Exall has shut in the 02-36 Gilwood "B" Sand well because the well has
over produced its allowable during the New Oil Well Production Period. The
02-36 "B" Sand well will be placed back on production in 2011, once the over
production has been retired according to the Alberta Energy Resources
Conservation Board ("ERCB") regulations. The 02-36 "B" Sand well was producing
approximately 503 BOEPD (362 BOEPD net) prior to being shut in.
With the 02-36 "B" Sand well shut in and the tie in of the newly
completed 07-25 "B" Sand well, Exall's net corporate production remains in the
order of 1,500 to 1,600 BOEPD.
Completion activities are currently underway on the second of the fall
wells drilled, along with completion activities on two additional wells
drilled earlier in 2010. As well, an additional waterflood and Good Production
Practices application is currently being filed with the ERCB, with approvals
expected in the New Year.
Exall expects to spud the third (06-36 Gilwood "B" Sand) of the four fall
2010 wells December 15 with the fourth well spudding immediately following the
completion of drilling operations on the 06-36 "B" Sand well.
About Exall Exall is a junior oil and gas company active in its business
of oil and gas exploration, development and production from its properties in
Alberta, British Columbia and Texas. Exall Energy is currently developing a
new oil discovery in north-central Alberta.
Exall Energy has 53,210,245 common shares outstanding. The Company's
common shares are listed on the Toronto Stock Exchange under the trading
symbol EE.
Reader Advisory This news release contains forward-looking statements,
which are subject to certain risks, uncertainties and assumptions, including
those relating to results of operations and financial condition, capital
spending, financing sources, commodity prices and costs of production. By
their nature, forward-looking statements are subject to numerous risks and
uncertainties that could significantly affect anticipated results in the
future and, accordingly, actual results may differ materially from those
predicted. A number of factors could cause actual results to differ materially
from the results discussed in such statements, and there is no assurance that
actual results will be consistent with them. Such factors include
fluctuating commodity prices, capital spending and costs of production, and
other factors described in the Company's most recent Annual Information Form
under the heading "Risk Factors" which has been filed electronically by means
of the System for Electronic Document Analysis and Retrieval ("SEDAR") located
at www.sedar.com. Such forward-looking statements are made as at the date of
this news release, and the Company assumes no obligation to update or revise
them, either publicly or otherwise, to reflect new events, information or
circumstances, except as may be required under applicable securities law.
For the purposes of calculating unit costs, natural gas has been
converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to
one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf:
1 bbl is based on an energy equivalency conversion method and does not
represent a value equivalency; therefore boe may be misleading if used in
isolation. This conversion conforms to the Canadian Securities Regulators'
National Instrument 51-101 - Standards of Disclosure for Oil and Gas
Activities.
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