CALGARY, Jan. 23 /CNW/ - Great Plains Exploration Inc. (TSX-GPX) is
pleased to announce that it has completed and tested its first exploration
well in the Crossfire area of Pembina. The well located at 11-12-51-05W5
encountered a dolomite Nisku reef with a hydrocarbon column of 10.5 metres,
based on well log data. During initial testing the well produced at rates up
to 1,390 bbl/d of oil. This was followed by a four hour flow test, during
which the well flowed at a stabilized rate of 730 bbl/d of 35 degrees API
clean oil with associated gas of 470 mcf/d (approximately 800 boe/d total) at
a flowing pressure of 3,253 kPa on a 9.53mm choke.
This new discovery at 11-12 suggests a significant extension of the
Pembina Nisku trend to the northeast from the main producing area. The
Company's working interest level in the drilling and completion of the well
was 40%. Subject to elections by partners on equipping and tie-in, the Company
will hold a final working interest between 26.6% and 40% in the 11-12 well.
This well is the first of up to six additional wells targeting similar light
oil prospects in the Nisku formation which Great Plains and its partners have
planned for the Crossfire and Pembina area in 2008. The Company's working
interests range from 25% to 46% in these locations.
Investors should note that boes may be misleading, particularly if used
in isolation. A boe conversion rate of 6 Mcf: 1bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements which include, but
are not limited to: operations plans and outlook, expectations, opinions,
forecasts, projections, guidance or other statements that are not statements
of fact. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any assurance that
such expectations will prove to be correct or that the well will produce at
the levels tested. Results of the Company may be affected by a variety of
variables and risks associated with oil and gas exploration, production and
transportation, such as loss of market, volatility of oil and gas prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, ability to access sufficient debt and equity
capital from internal and external sources, ability to replace and expand oil
and gas reserves, ability to generate sufficient cash flow from operations to
meet its current and future obligations, and risks associated with existing
and potential future lawsuits and regulatory actions made against the Company;
as a consequence, actual results could differ materially from those
anticipated or implied in the forward-looking statements.
The Company's forward-looking statements are expressly qualified in their
entirety by this cautionary statement and are made as of the date of this news
release. Unless otherwise required by applicable securities laws, the Company
does not intend nor does it undertake any obligation to update or review any
forward-looking statements to reflect subsequent information, event, results
or circumstances or otherwise.
For further information:
For further information: Great Plains Exploration Inc., Stephen P.
Gibson, President & CEO, Sean Bovingdon, VP Finance & CFO, Tel: (403)
262-9620, Fax: (403) 262-9622, www.greatplainsexp.com,