CALGARY, Feb. 2, 2012 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) provides an update on the
following; initial test results from Chouech Essaida Silurian #10 well
(CS Sil #10) in southern Tunisia, well workover plans at Chouech
Essaida Concession in southern Tunisia, termination of Sabria
Concession (in central Tunisia) farmout negotiations, field operations
in northwest Romania and January 2012 production.
Chouech Essaida Silurian #10 ("CS Sil #10") (100% working interest)
This well rig released on December 10, 2011, at a total depth of 4,420
meters with objectives in the Triassic and Silurian levels. The rigging
down of high pressure testing equipment began on February 1, 2012.
Drilling, completion and testing have been on time and within budget at
an estimated cost of US$17 to $18 million, which translates into after
tax cost of US $ 11 million net to Winstar.
The Silurian primary target is the Tannezuft Sandstone which was
intersected 30 meters structurally higher and 40% thicker (gross 32
meters) at CS Sil #10 than the equivalent producing sandstones at
Chouech Essaida Sil #1 ("CS Sil #1") approximately 2 kilometers away.
Initial CS Sil #10 tests, indicated that the Tannezuft Sandstone is
predominately 45 degree API crude oil saturated (25 gross meters) and
also contains rich natural gas yielding 55 degree API condensate (7
gross meters). CS Sil #1 produces gas condensate only, which was
therefore expected in CS Sil #10. At 4,300 meters, Tannezuft crude oil
at CS Sil #10 is believed to be the deepest crude oil tested in Tunisia
The Tannezuft sands at CS Sil #1 and CS Sil #10 wells have similar
porosity and permeabilities as calculated by open-hole logs and Modular
Dynamic Formation Tests (MDTs). The test results of the Tannezuft sand
at CS Sil #10 are not conclusive; crude oil, gas and condensate were
recovered at surface but build-up data indicates that crude oil flow
rates may benefit from further clean-up or stimulation. Production
strategy is being evaluated.
The 32 gross meters of Tannezuft sands are considered to be a potential,
crude oil and gas condensate resource.
At CS Sil #10, the Company identified four separate potential Triassic
TAGI Sandstone oil zones as calculated by open-hole logs and MDTs.
Two zones (total 3 gross meters) have been perforated and tested. Test
results are inconclusive but potentially indicate a completion
(mechanical) or reservoir issue. The tests are recording small amounts
of crude oil with water of much higher salinities than typical Triassic
oil producers within our concession. Remedial strategy is being
Well workover plans (100% working interest) Chouech Essaida, Southern
Pump equipment will be installed in Chouech Essaida #11 and Chouech
Essaida #12 in February or early March 2012. Expected incremental
production from these two Triassic TAGI Sandstone oil wells is 300 to
375 barrels of oil per day ('bopd') plus solution gas.
Sabria Concession (45% working interest) Central Tunisia
The Company advises that negotiations with a private European
exploration company ("PrivateCo") to farmout half of its 45% working
interest in the Sabria Concession as described in the August 18, 2011
press release have been terminated.
Subject to further internal review and approval by Winstar's 55% working
interest partner, ETAP (The Tunisian State Oil Company), the Company is
prepared to drill a new 4,000 meter deep Ordovician Hamra Sandstone
test during the current year.
Romanian Exploration Wells (60% working interest) Satu Mare Concession,
Winstar's 1,600 meter deep Moftinu 1000 well, was drilled and cased
during late January 2012, on time and within budget. We are pleased to
report that the well encountered 10 gross meters of Pliocene sands
charged with natural gas, and 2 gross meters of gas bearing Miocene
sand, as indicated by strong shows during drilling and open-hole logs.
Testing of these two zones should be completed during February 2012.
The Moftinu 1000 well is only 1.5 kilometers away from a regional low
pressure natural gas transmission line. Further to positive test
results and a review with its partner Rompetrol Group N.V and the
Romanian government, the Company hopes to place the well on a long term
production test by connecting to the regional transmission line.
Romania currently has regulated gas prices, but the government has
pledged to eliminate subsidies by 2015.
Winstar's 1,600 meter deep Madaras 109 well was drilled and cased in
late 2011, on time and within budget. Well testing should begin this
month. A dolomitic oil zone (2 gross meters) in the Lower Miocene will
be stimulated by acid wash. A Middle-Miocene sandstone (15 gross
meters) which appears from open-hole logs to be oil saturated will also
Further to positive test results plus a review with its partner
Rompetrol Group N.V and the Romanian government, the Company hopes to
place the well on a long term test. Oil may be sold either by trucking
crude to rail spurs with off loading facilities or directly to local
refineries. Crude oil in Romania is sold at prices linked to Brent or
Ural oil posted prices.
The Moftinu and Madaras wells were drilled by Winstar as the operator of
the Satu Mare Concession. Winstar pays 100% of the costs of these
wells, estimated at US $ 4 million, to earn a 60% working interest in
the gross 728,960 acre Satu Mare Concession under a Farm-in Agreement
with the Rompetrol Group N. V. of Romania.
The company is pleased to report that its Tunisian production remains
strong. Winstar produced on average 2,500 to 2,600 boepd (barrels of
oil equivalent per day) in January.
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 valu 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 : 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)