MOO: TSX Venture Exchange
CALGARY, Feb. 24 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") (TSXV:MOO) is pleased to provide a corporate update and release of
additional information related to pressure survey work completed on
February 14, 2011 conducted on its 06-34 pilot well in Hamburg.
Pilot Well Pressure Survey Results
Mooncor conducted additional work on the 06-34 pilot well in Hamburg to
determine the static bottom hole pressure. The work is in addition to
well testing undertaken in February 2009 and provides confirmation of
reservoir pressure data obtained previously. Pressure survey results
confirm reservoir pressures of approximately 40 MPa. The Muskwa
formation is about 60% overpressured with a 15.9 KPa/m (0.70 psi/ft)
reservoir pressure gradient.
The pressure survey work also showed a gas/hydrocarbon liquid interface
at 1284 m above the Muskwa perforation interval. The height of the
hydrocarbon liquid column is viewed as significant given the relatively
small 5T frac that was placed into the formation during pilot
75 bbls/MMcf including approximately 34% by volume of 560 API condensate
The liquids content of the Muskwa shale in the Hamburg area as measured
by Mooncor is approximately 75 bbls/MMcf including approximately 34% by
volume of 560 API condensate. These numbers are comparable to results
released by other industry groups.
The presence of a 1284 m hydrocarbon liquid column in the pilot well is
a positive indicator of the deliverability and liquids rich potential
for this shale system. The vertical pilot well was originally
perforated over a 3 m interval, frac'd with 5T of proppant and was then
flow tested as a gas well. Mooncor recovered and sold 2.9 m3 (18.2
bbls) of condensate from the original flow test in February 2009. Based
on the hydrocarbon liquid level observed, management is of the opinion
that the well will perform better
with appropriately sized production tubulars, as the inflow of liquids
caused the well to load up, inhibiting further gas/fluid inflow in the
2009 flow test.
A recent press release from a leader in unconventional gas assessment
announced the availability of a study of the Muskwa shales in the
Hamburg area including Mooncor lands. The study has been prepared in
advance of three upcoming land sales in the Hamburg area scheduled for
March 9 and 23, 2011 and April 6, 2011. Lands posted into these three
sales are in excess of 150,000 acres. Mooncor currently has 100%
working interest in 103,680 acres in this immediate area.
Indicative Well Economics
Mooncor management has prepared internal per well economics for
exploitation of the liquids rich Muskwa shale in the Hamburg area. The
economics reflect the 5% royalty on the first 36 months of production
from the shale as announced by the Alberta Provincial government on May
Management internally generated economic modeling show very robust rates
of return. Capital costs are estimated to be $8.28 MM based on industry
sourced estimates of capital (drill, complete & tie-in costs). The
calculated contribution of the liquids is approximately 60% of the
revenue based on forecast current gas and gas liquids pricing.
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and
development company. Mooncor is focusing on its shale gas opportunities
with a current emphasis on negotiations for a joint venture partner on
its high impact proven Muskwa/Duvernay shale gas play at Hamburg,
Alberta as well as structuring a spinoff of its southwest Ontario
assets into a new entity.
The information in this news release includes certain information and
statements about management's view of future events, expectations, plans and prospects that constitute forward looking
statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these
risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ
materially from those anticipated and indicated by these forward looking statements. Although Mooncor believes that the
expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any
forward looking statements will prove to be correct. Except as required by law, Mooncor disclaims any intention and assumes no
obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information,
future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
SOURCE Mooncor Oil and Gas Corp.
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