CALGARY, April 25 /CNW/ - GEOCAN Energy Inc. ("GEOCAN" or the "Company")
(TSX: GCA) announces the results of its capital program for the period ending
March 31, 2007. Full first quarter operational and financial results will be
available May 15, 2007.
Drilling Operations - During the first quarter, GEOCAN participated in
the drilling of 11 gross wells (8.91 net) consisting of five gross (5.0 net)
heavy oil wells, five gross (2.91 net) natural gas wells and one gross
(1.0 net) light oil well. All eleven wells were cased.
GEOCAN drilled and cased three gross (net) wells in northeast British
Columbia during the first quarter. One of the wells was equipped and tied-in
for natural gas late in the quarter. A second well was cased for light oil
just prior to break-up and will be completed next winter when surface access
permits. A third well was drilled and completed, but not tied-in at this time
due to insufficient natural gas rates to anchor a 3.75 mile pipeline to the
A total of five gross (net) heavy oil wells were drilled during the first
quarter. Four of the five wells were completed and equipped prior to the end
of the quarter. Two wells are currently on initial production cleanup while
two other wells produced for a short time and had to be suspended due to
surface access restrictions as a result of break-up conditions. These will be
restarted when surface access conditions permit. The fifth well is waiting
completion after surface conditions allow access.
A non-operated exploratory well at Ochre (0.5 net) in the Peace River
arch area was drilled and cased as a potential natural gas well late in the
quarter. Due to break-up, completion operations and the drilling of a second
well will occur next winter when access permits.
GEOCAN also cased a non-operated potential multi-zone natural gas well at
Edson (0.25 net). This well will be tied-in by the partner to their facility
A non-operated coal bed methane natural gas well (0.16 net) was drilled
and cased early in the quarter. Completion operations are scheduled after
Land Acquisitions and Farm-in's - GEOCAN acquired six sections or 3,840
gross (3,406 net) acres at Crown land sales in the first quarter. The Company
acquired 2,560 gross (2,560 net) acres at Flatrock in northeast British
Columbia, 640 gross (640 net) acres at Bigoray in west central Alberta, 480
gross (120 net) acres at Raven in west central Alberta and finally 160 gross
(86 net) acres were acquired at Lloydminster Saskatchewan. As a result of
drilling operations conducted at Currant in northeast British Columbia, GEOCAN
will earn 640 gross (net) acres in this core area through a farm-in with an
industry major once the well is completed.
Seismic - The Company undertook three new seismic programs during the
quarter; a 3.1 mile 2D seismic program at Bigoray, Alberta; an eight mile 2D
seismic program at Flatrock with an additional 20 mile trade seismic
acquisition also at Flatrock in northeast British Columbia and finally, GEOCAN
commenced the preparation work for a 2D program at Osborn which will be
completed next winter in this limited access area.
GEOCAN acquired trade seismic in the Mikwan and Carrot Creek areas of
west central Alberta as well.
SAGD Project - Front end engineering design work continues on the steam
assisted gravity drainage ("SAGD") project in the Lloydminster area. Updates
will be made as significant progress milestones are met. A more detailed
discussion of the project is available on the Company website or at
Asset Divestiture Program - During the fourth quarter of 2006 and the
first quarter of 2007, GEOCAN conducted a full review of its non-operated and
non-core assets with the intention of concentrating on its core areas of
northeast British Columbia, west central Alberta, the Peace River area and
Lloydminster Saskatchewan. As a result, the Company has placed 450 boepd of
assets for sale through Sayer Energy Advisors www.sayeradvisors.com. This
divestiture; with a proved plus probable NPV10% of approximately $25 million;
represents GEOCAN's first public offering of properties in its nine year
history. Bids are due by May 10, 2007.
Advisory -- Forward-looking Information
This press release may include certain 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 the forward-looking statements. However, while management
believes these forward-looking statements to be reasonable, the reader cannot
be assured that these expectations will prove to be correct. The reader should
not unduly rely on these forward-looking statements as these statements speak
only as of the date of April 25, 2007. Additional information about the
company can be found on www.sedar.com.
Barrel of oil equivalent (BOE) may be misleading, particularly if used in
isolation. A BOE conversion ratio for natural gas of 6 mcf : 1 bbl. This is
based on an energy equivalency conversion method particularly applicable at
the burner tip and does not represent a value equivalency at the wellhead.
For further information:
For further information: Wayne Wadley, President and CEO or Scott
Gordon, VP Engineering and Operations, GEOCAN Energy Inc., Phone (403)
261-3851, Fax (403) 261-3834, Email email@example.com or firstname.lastname@example.org,