CALGARY, Aug. 13 /CNW Telbec/ - Exall Energy Corporation (TSX: EE) ("Exall" or the "Company") is pleased to announce the results of the wells drilled during the 2010 summer drilling season.
- Two of the four planned wells offsetting the previously announced
discovery on the Marten Mountain "B" Sand trend (April 13, 2010) have
been drilled during the summer drilling season,
- One well has been completed and flow tested at 450 barrels per day of
40 degrees API sweet oil and 175 MCFPD of solution gas (480 BOEPD) over
a three day test period (353 BOEPD net to Exall),
- The final 24 hour flow rate averaged 450 barrels of oil and 127 MCF of
solution gas (348 BOEPD net),
- These offset wells were drilled from the same surface location as the
"B" Sand discovery well and immediately adjacent to the Exall pipeline,
- The first well is expected to be tied in and on production through the
Exall facility by mid-month,
- Completion operations are continuing on the second well,
- Exall has earned additional interest through a farmin and owns a 71.89%
working interest in the well and additional lands surrounding the
- Exall is currently in the process of designing and building a gas
tie-in facility to handle the excess solution gas production which
currently restricts oil production rates in the Marten Mountain area.
Marten Mountain Project
The "B" Sand discovery well previously announced by Exall has been offset in two directions with horizontal wells resulting in two potential oil wells. One well has been completed and flowed an average of 450 barrels of 40 degrees API sweet oil and 175 MCFPD of solution gas (480 BOEPD, 353 BOEPD net) over a three day test period. The final 24 hour flow rate averaged 450 barrels of oil and 127 MCF of solution gas (348 BOEPD net). Completion operations are ongoing on the second well.
The offset wells were drilled from the same surface location as the discovery well and will immediately be tied into the Exall pipeline completed in Q4 of last year. The Company had previously constructed a tie-in point for these wells on the pipeline to facilitate ease of tie-in operations. Exall expects the first offset well will be on production through the Exall facility by mid-August.
Exall has earned additional interest in the discovery well, offset wells and adjacent acreage through a farmin, and currently owns a 71.89% working interest and is the operator. Exall has also recently acquired additional interest in 192 hectares of additional lands identified as prospective at an Alberta Crown Land Sale (127 hectares net).
The wells drilled this summer have established continued sand development on the Marten Mountain "B" Sand trend which is adjacent to owned facilities and all-weather access. Development drilling of this property is expected to continue through the end of the year.
Exall is currently in the process of designing and building a gas tie-in facility to handle the excess solution gas production which currently restricts oil production rates in the Marten Mountain area. The facility will include a compressor and dehydrator, instrumentation and a short pipeline to an existing gas line. This facility is expected to be operational in October of this year and will significantly increase oil and gas production rates.
Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas. Exall Energy is currently developing a new oil discovery in north-central Alberta.
Exall Energy has 52,382,745 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE.
This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.
For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
SOURCE Exall Energy Corporation
For further information: For further information: Exall Energy Corporation: Frank S. Rebeyka, Vice Chairman & CEO, Tel: 403-815-6637; Roger N. Dueck, President & COO, Tel: 403-237-7820, firstname.lastname@example.org; Please visit Exall Energy's website at: www.exall.com; Renmark Financial Communications Inc.: Henri Perron, email@example.com; Maurice Dagenais, firstname.lastname@example.org; Tel.: (514) 939-3989, (416) 644-2020; www.renmarkfinancial.com