CALGARY, Nov. 21, 2011 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) is pleased to provide further
operational updates on field activities in southern Tunisia and Romania
and to advise the market of a management change.
The Company is pleased to advise that STEG has resolved the previously
reported technical issues at their natural gas plant located in El
Borma and the Company resumed selling its natural gas production from
the Chouech Essaida Concession on November 15, 2011. As a result of the
resumption of natural gas sales last week, the Company is currently
selling approximately 2,300 boepd of crude oil and associated natural
gas from all its producing Tunisian concessions. As previously
announced on November 10, 2011, the installation of a downhole pump has
commenced, at Chouech Essaida #8bis, which has temporarily reduced the
available quantity of crude oil and associated natural gas.
Incremental oil and associated natural gas volumes as a result of this
workover are expected in early December 2011.
Chouech Essaida Silurian #10 ("CS Sil #10") (100% working interest)
The Company's deep exploration well, CS Sil #10 reached total depth of
4,420 meters on November 13, 2011. Open-hole log data (including an MDT
- Modular Formation Dynamic Tester) and well-site geological
measurements and observations indicate hydrocarbon potential in the
Silurian and Triassic sandstones with quality and quantity comparable
to those identified in Chouech Essaida Silurian #1 ("CS Sil #1") well.
The Company cautions that open-hole log results are interpretative and
that a comprehensive production testing program is required to estimate
the technical reservoir parameters and the longer term productive
capacity of the well.
The open-hole log data provides enough indications of a potentially
economic well, that the Company has commenced the process of completing
the well, with testing operations expected to start in December.
Incremental production, if testing establishes commercial quantities of
liquid hydrocarbons, could occur in January 2012.
The Company spud its first well in Romania on November 20, 2011. The
Madaras 109 well is a 1,800 meter test of a Miocene oil zone previously
encountered in a nearby offset well. The Madaras 109 well is expected
to take approximately 20 days to drill and evaluate. The second well
Moftinu 1000 is located approximately 10 kilometers northwest of the
Madaras 109 well. The Moftinu 1000 well is expected to reach a total
depth of 1,550 meters and will test various Pliocene gas zones
encountered in offset wells. The drilling rig will move directly to the
Moftinu well upon release from the Madaras well. Winstar will operate
and pay 100% of the cost of these wells to earn a 60% working interest
as part of the Company's work commitment under the Farm-in Agreement
with Rompetrol Group N.V. of Romania.
The Company wishes to advise that Roger McMechan, Executive Vice
President and Director, has submitted his resignation from the Company
to pursue other business opportunities. Mr. McMechan will remain with
the Company for a period of up to 4 months to provide an orderly
transition and will continue to perform managerial duties during the
Effective immediately, a portion of his duties, including those related
to reservoir engineering, will be assumed by Ms. Lorraine Bolton (P.
Eng) Senior Reservoir Engineer who commenced employment with the
Company on November 8, 2011. Ms. Bolton is an APEGGA Professional
Engineer with 30 years experience in oil and natural gas engineering
and project development. Ms. Bolton's experience includes 15 years of
oil and gas reservoir and production engineering, and 15 years in
various oil and gas engineering management positions in energy
services, supply and transportation planning, regulatory strategy, and
The Company wishes to thank Mr. McMechan for his dedication and service
and wishes him success in all his future endeavors.
Reference herein to "boe" mean barrels of oil equivalent and is derived
by converting gas to oil in the ratio of six thousand cubic feet (Mcf)
of gas to one barrel (bbl) of oil. Boe may be misleading, particularly
if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is
based upon an energy conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
References herein to "boepd" means barrels of oil equivalent per day.
This press release contains certain forward-looking statements. These
statements relate to future events or future performance of the
Company. When used in this press release, the words "may", "would",
"could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"predict", "seek", "propose", "expect", "potential", "continue", and
similar expressions, are intended to identify forward-looking
statements. These statements involve known and unknown risks,
uncertainties, and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect the Company's
current views with respect to certain events, and are subject to
certain risks, uncertainties and assumptions. Many factors could cause
Winstar's actual results, performance, or achievements to materially
differ from those described in this press release. Should one or more
of these risks or uncertainties materialize, or should assumptions
underlying forward-looking statements prove incorrect, actual results
may vary materially from those described in this press release as
intended, planned, anticipated, believed, estimated, or expected.
Specific forward-looking statements in this press release include,
among others, statements pertaining to the following: factors upon
which Winstar will decide whether or not to undertake a specific course
of action; and estimated volumes and timing of future production;
business plans for drilling, exploration and development; and other
expectations, beliefs, plans, goal, objectives, assumptions,
information and statements about possible future events, conditions,
results of operations or performance. The risks to which the Company is
subject include those of the oil and gas industry in general including
operational risks in exploring for, developing and producing crude oil
and natural gas; risks and uncertainties involving geology of oil and
gas deposits; volatility in global market prices for oil and natural
gas; general economic conditions; competition; liabilities and risks,
including environmental liability and risks, inherent in oil and gas
operations; uncertainties as to the availability and cost of financing
and changes in capital markets; alternatives to and changing demand for
petroleum products; and changes in legislation and the regulatory
environment, including uncertainties with respect to the Kyoto
Protocol. Furthermore, statements relating to "reserves" or "resources"
are deemed to be forward-looking statements, as they involve the
implied assessment, based on certain estimates and assumptions to the
effect that the resources and reserves described can be produced
profitably in the future. The forward-looking statements contained in
this press release are expressly qualified in their entirety by this
cautionary statement. These statements speak only as of the date of
this press release. The Company does not intend and does not assume any
obligation, to update these forward-looking statements to reflect new
information, subsequent events or otherwise, except as required by law.
Winstar Resources Ltd. is a Calgary based junior oil and gas company,
which explores for, develops, produces, and sells crude oil, natural
gas liquids and natural gas in Tunisia and Romania. Winstar's common
shares trade on the Toronto Stock Exchange under the symbol WIX.
SOURCE Winstar Resources Ltd.
For further information:
Mr. David Monachello
Phone: +1 403 513 4200
E-mail : email@example.com
Mr. Bradley Giblin
Chief Financial Officer
Phone : +1 403 513 4207
E-mail : firstname.lastname@example.org
Mr. Charles de Mestral
Chief Executive Officer
Phone: +41 22 361 14 45
(Note: Mr. de Mestral is based in Europe, in a time zone eight hours ahead of Calgary time)