Emerald Bay provides update on Texas operations where new vertical wells are coming online
CALGARY, Oct. 10, 2013 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Company"or "Emerald Bay") is pleased to provide an update on recent activities in Texas.
At Wooden Horse the Company has completed the construction of all production facilities and has begun pumping the recently drilled Edwards Horizontal well, Kuhn 1H.
Emerald Bay President, Shelby D. Beattie, expounded, "It is typical during initial phases of production for an Edwards horizontal well to yield 100% water for a period of time before the oil cut is established. This initial phase can last days or months as each well can be very different; further, the optimization of the well and facilities can also take some time. Kuhn 1H has now been pumping for over two months.The facilities have functioned flawlessly to date, and the first oil cut has now been observed."
The Company will continue fine tuning the pumping procedure to achieve a consistent oil cut and initial oil production rate in the near future.
Also at Wooden Horse, the vertical wells Kuhn 1C and Imhoff 1 have been producing for several weeks with the first load of oil having been sold from Kuhn 1C in September. Just as with Kuhn 1H these vertical wells take time to establish a consistent oil cut. The Company is confident that the vertical wells will add a solid economic return to the Wooden Horse play.
At Cottonwood Creek, the recently drilled Poenitz 1 well has completed its initial testing phase. Unlike the Wooden Horse wells, this is strictly an oil well with no water to handle. The Company is pleased with the initial flow rates and the high grade of crude. Facilities are being completed this week and Poenitz 1 will be producing full time in the coming days. The Company has identified additional locations and drilling of the second well will commence in the coming weeks.
At Nash Creek, the Company has recently received the Ground Water Protection Determination which allows permitting for a salt water disposal well to proceed. It is anticipated that the permit process will take 60-90 days and the well will be drilled once the permit has been granted. Similar to the development of the Wooden Horse play, the salt water disposal well is the key initial step for developing the Nash Creek play.
At Holmes Lake, land acquisition efforts have successfully concluded for the initial exploratory stage of the project. It is expected that drilling of the initial test well will take place in early 2014.
In Atascosa and Medina Counties Texas, Production Resources Inc. ("PRI"), a private company in which Emerald Bay has 25% ownership, continues to move ahead with drilling new wells as well as workovers of existing wells. PRI has seen production double from 50 bpd to 100 bpd in the past year. With the addition of the recently acquired wells in the Somerset Field and the re-perforating program that PRI is undertaking, it is anticipated that PRI will see production double again in the next six to nine months and sustainable growth on existing land holdings for several years to come.
About Emerald Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas. The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please visit www.emeraldbayenergy.com.
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This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect", "plan", "intend", "anticipates", "projects", "potential" or similar expressions.. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements are statements that are not historical facts.
Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a well is actually developed. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Emerald Bay at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Emerald Bay that actual results achieved will be the same in whole or part as those indicated in the forward-looking statements. Forward-looking statements in this document include statements regarding the Company's exploration, drilling and development plans, the Company's expectations regarding the timing and success of such programs. In particular, forward-looking information in this news release includes, but is not limited to, statements with respect to: pipeline acquisitions and leasing; pipeline permits, pipeline construction, production estimates, drilling operations, completion operations, funding and development goals. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in the prices of oil and gas, uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company's oil and gas production, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the applicable securities regulators.
SOURCE Emerald Bay Energy Inc.For further information:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at email@example.com,
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