PetroSands Commences Drilling Program & Farmin Agreement at East - Central Alberta

TSX Venture Exchange
Trading Symbol: PCA

CALGARY, Nov. 10, 2011 /CNW/ - PetroSands Resources (Canada) Inc. ("PCA" or the "Company") has commenced its fall drilling program on the previously announced oil-weighted assets (acquired on February 25, 2011) at Provost, Alberta. The drilling program includes lower Mannville oil wells (2 verticals & 1 horizontal) (2.9 net), to be drilled prior to December 31, 2011.

PCA's first well, "PCA Provost 103/04-29-38-3W4", (100% working interest) a vertical Cummings development location, was recently successfully drilled and completed. Swabbing operations have established excellent inflow and pressure tests have confirmed the formation has near virgin reservoir pressure. Downhole pumping equipment was installed in the wellbore and the well was equipped and tied-in to a nearby Company owned and operated infrastructure (100%). The well commenced production at a daily rate of 75 barrels of oil per day with the expectation of leveling off at an IP (initial production rate) rate of approximately 30 - 50 boe/d (30 day average).

The Company's second Provost well is a vertical exploration well (90% WI) targeting the Dina formation. The well is scheduled to spud mid-November. If successful, the resulting new pool discovery will be delineated with both vertical and horizontal wells in early 2012.

The Company's third Provost well (100% WI) is a horizontal development well targeting the Rex lithic channel system. This location is expected to spud towards the end of November, or early December.

Anticipated incremental production is expected by year-end as all three Provost wells are located in close proximity to existing pipelines and surface facilities. Emulsion will be processed at the Company's 100% owned Provost Battery. The Company estimates initial cumulative production to be approximately 100 - 150 boe/d with resulting reserve additions.

Results of the second and third Provost drill locations will be released as soon as the information becomes available. All three wells qualify as Canadian Exploration Expense (CEE) and Canadian Development Expense (CDE), as defined by Canada Revenue Agency and will fulfill the Company's remaining 2011 flow-through obligations.

PCA is also progressing with its 3-D seismic program in the Provost area. Data is expected to be processed in Q4 2011 and the Company is confident that seismic interpretation could lead to new pools for exploitation and tied into Company owned infrastructure.

Continued success in developing the Provost property is expected to add significant value to PCA's current asset base. The Company will therefore continue to focus on expanding and proving the Provost assets through the balance of 2011 and into 2012.

Farmin Agreement

PCA has secured a farm-in arrangement with a major company in the Company's core area of Provost at east-central Alberta that includes 4 sections of land on a significant Mannville horizontal oil drilling opportunity. The terms of the agreement allows PCA to earn 65 percent in 2 sections of the prospect by drilling one horizontal test well. The farm-in also contains a rolling option in favor of the farmee to shoot a 3D seismic program or drill to earn the balance of the lands under the subject agreement. Should prospect prove to be successful, PCA anticipates a development program of 4 additional horizontal oil wells. The Company plans to drill the wells using monobore drilling technology that will provide cost-effective savings together with the added flexibility of selective completion intervals to maximize productivity and potentially result in additional cost control.

About PetroSands

PetroSands Resources (Canada) Inc. is a dynamic, publicly traded junior oil producer targeting oil-based opportunities in Western Canada. The Company is focused on strategic oil-based acquisitions within its core areas, in addition to exploiting and exploring for incremental production and reserves. The Company currently has approximately 38.2 million common shares outstanding. PetroSands' shares are listed on the TSX-V under the trading symbol "PCA".

* Boe Presentation: The term BOE may be misleading, particularly if used in isolation. A BOE (barrel of oil equivalent) conversion of 6 million cubic feet (Mcf): 1 barrel (bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.



Forward-Looking Statements: This news release contains certain forward-looking statements, including but not limited to, management's assessment of future plans and operations, expected success from drilling operations, expectations regarding future levels of production, revenues and drilling inventory, capital expenditures and the timing thereof and expected timing and results from operations, all of which involve substantial known and unknown risks, uncertainties and assumptions, certain of which are beyond the Company's control. Such risks, uncertainties and assumptions include, without limitation, oil and gas exploration, development, exploitation, production, marketing, processing 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, the United States and overseas, 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. The Company'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 so, what benefits that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports, including the Company's annual information form for the financial year ended December 31, 2009, on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). All subsequent forward-looking statements, whether written or oral, attributable to the Company 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 the Company 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.


NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILTY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

SOURCE PetroSands Resources (Canada) Inc.

For further information:

Greg T. Busby, President & CEO
PETROSANDS RESOURCES (CANADA) INC.
Telephone: (403) 265-2770
Fax: (403) 265-2775

Dwight Fieseler, Chief Financial Officer
PETROSANDS RESOURCES (CANADA) INC.
Tel: (403) 265-2770
Fax: (403) 265-2775

TSX Venture: PCA

Profil de l'entreprise

PetroSands Resources (Canada) Inc.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.