CALGARY, AB, Dec. 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 fall
Two of the four planned wells offsetting the previously announced
discoveries on the Marten Mountain Gilwood "A" Sand and the Marten
Mountain Gilwood "B" Sand trends have been drilled during the fall
One well has been completed and swab tested at an average of 384 barrels
of oil per day of 39° API sweet oil over a three day test period (276
BOEPD net to Exall),
The final 24 hour swab rate averaged 420 barrels of oil per day (302
The completed well is tied in and on production through the Exall
Corporate production capability is now approximately 2,000 BOEPD,
current production remains in the order of 1,500 BOEPD to 1,600 BOEPD,
Completion operations are continuing on the second well.
Marten Mountain Project
The 12-25 Gilwood "B" Sand discovery well previously announced by Exall
has been offset with an additional horizontal well (07-25) resulting in
another oil well. This 07-25 Gilwood "B" Sand well has been completed
and swab tested an average of 384 barrels of 39° API sweet oil (384
BOEPD, 276 BOEPD net) over a three day test period. The final 24 hour
swab test rate averaged 420 barrels of oil (302 BOEPD net).
The 07-25 Gilwood "B" Sand well was drilled from the same surface
location as the 12-25 Gilwood "B" Sand discovery well and was
immediately tied into the Exall pipeline completed in Q4 of 2009. The
Company had previously constructed a tie-in point for additional wells
on the pipeline to expedite tie-in operations. The 07-25 "B" Sand well
will be produced using a submersible pump to maintain optimum
production rates, during the New Oil Well Production period, of
approximately 629 BOEPD (452 BOEPD net).
Exall has shut in the 02-36 Gilwood "B" Sand well because the well has
over produced its allowable during the New Oil Well Production Period.
The 02-36 "B" Sand well will be placed back on production in 2011, once
the over production has been retired according to the Alberta Energy
Resources Conservation Board ("ERCB") regulations. The 02-36 "B" Sand
well was producing approximately 503 BOEPD (362 BOEPD net) prior to
being shut in.
With the 02-36 "B" Sand well shut in and the tie in of the newly
completed 07-25 "B" Sand well, Exall's net corporate production remains
in the order of 1,500 to 1,600 BOEPD.
Completion activities are currently underway on the second of the fall
wells drilled, along with completion activities on two additional wells
drilled earlier in 2010. As well, an additional waterflood and Good
Production Practices application is currently being filed with the
ERCB, with approvals expected in the New Year.
Exall expects to spud the third (06-36 Gilwood "B" Sand) of the four
fall 2010 wells December 15 with the fourth well spudding immediately
following the completion of drilling operations on the 06-36 "B" Sand
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 53,210,245 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
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
|Roger N. Dueck|
President & COO
Please visit Exall Energy's website at: www.exall.com
Renmark Financial Communications Inc.
Henri Perron: firstname.lastname@example.org
Maurice Dagenais: email@example.com
Tel.: (514) 939-3989 or (416) 644-2020