CALGARY, Jan. 17, 2013 /CNW/ - Marquee Energy Ltd. ("Marquee" or the
"Company") (TSXV: MQL) is pleased to provide an update on recent
operations across its two key oil projects at Michichi and
These projects provide Marquee with a strong foundation of high netback
oil production and provide a basis for repeatable development potential
for the next several years. Following Marquee's fourth quarter
disposition of its gas weighted Willesden Green property, Marquee is
currently producing greater than 2,300 boe/d (62% oil and liquids).
Combined production from the Michichi and Lloydminster core areas now
represents almost 70% of corporate production.
Marquee is the most active driller in this emerging light oil play
having drilled 10 of more than 30 horizontal wells licensed in the
Michichi area since July 2011. To date, Marquee has realized a 100%
success rate on the 10 (100% working interest) horizontal light oil
wells drilled into the Banff and Detrital formations. Eight of these
wells are currently on production while the remaining two wells are
awaiting completion operations and are expected to be on production in
February. The first horizontal well of Marquee's three well fourth
quarter program averaged more than 200 boe/d over an initial five day
test period and achieved an IP30 of 141 boe/d with oil and liquids
weighting close to 90%.
Marquee continues to optimize drilling and completion techniques,
including moving to multi-well drilling pads, in order to improve
capital cost performance. The Company has recently tested a new frac
design with promising results and expects the method can increase
productivity from new drills compared to conventional multi-stage fracs
and reduce completion costs by as much as 40%.
Marquee continues to expand its land position and seismic database in
the area. Through acquisitions and landsales, Marquee now owns more
than 118 net sections of operated Crown lands in the area. Marquee also
expanded its seismic database at Michichi to 1,281 line kilometers of
2D seismic and 104 km2 of 3D seismic. Analysis of this seismic data in
conjunction with ongoing detailed geologic evaluations, including
extensive review of regional core data, is contributing to the
expansion and de-risking of the Company's prospect inventory.
Expansion of the Company's 8 mmcf/d gas plant at Michichi and the
associated gathering system will be complete within the next two weeks.
Installation of a five kilometer long six inch gas gathering system
will allow the Company to tie-in existing and future horizontal wells
to the new gas plant, which will reduce the amount of gas currently
going to a third party facility and result in lower processing costs,
improve natural gas liquid recoveries, and reduce future well tie-in
costs and on-stream times.
At Lloydminster Marquee successfully drilled ten vertical heavy oil
wells in 2012, five of which were drilled and put on production during
the fourth quarter. These wells were drilled, completed, equipped with
production facilities, and placed on production within three weeks of
rig release for under $600,000 per well.
Marquee remains committed to efficiently capitalizing its core oil
assets in eastern Alberta while continuing to improve its financial
The Company is expecting to provide details of its planned operations
and guidance for 2013 in early February and is currently scheduled to
release its 2012 year-end financial results after close of market on
March 21, 2013.
Further Information about Marquee Energy Ltd.
Marquee Energy Ltd. is a publicly traded Calgary-based growth oriented
junior oil and gas company currently focused on high rate of return,
oil and liquids rich gas production in Southern Alberta. Further
information about Marquee Energy Ltd. may be found in its continuous
disclosure documents filed with Canadian securities regulators at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Certain information regarding the Company set forth in this press
release contains forward-looking statements that involve substantial
known and unknown risks and uncertainties. The use of any of the words
"plan", "expect", "forecast", "project", "intend", "believe",
"anticipate", "estimate" or other similar words, or statements that
certain events or conditions "may" or "will" occur are intended to
identify forward-looking statements. Such statements represent
Marquee's internal projections, estimates or beliefs concerning, among
other things, future growth, results of operations, production, future
capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, plans for and
results of drilling activity, environmental matters, business prospects
and opportunities. These statements are only predictions and actual
events or results may differ materially. Although Management believes
that the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievement since such expectations are inherently
subject to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors could cause the
Company's actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of,
In particular, forward-looking statements included in this release
include, but are not limited to, completion of planned drilling
activities and the results there from, the impact of the drilling and
exploration activities on the Company's operations, infrastructure,
inventory and opportunities; financial and business prospects and
financial outlook; results of operations, production, future costs,
reserves and production estimates; drilling plans; activities to be
undertaken in various areas, timing of drilling, completion and tie in
of wells; access to infrastructure; timing of development of
undeveloped reserves; planned capital expenditures, the timing thereof
and the method of funding; financial condition, access to capital and
overall strategy; the performance characteristics of the Company's
crude oil properties; and the Company's oil and natural gas production
levels and production levels associated with the Assets.
Boes are presented on the basis of one boe for six Mcf of natural gas.
Disclosure provided herein in respect of boes may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 Mcf:1
bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency
at the wellhead.
SOURCE: Marquee Energy Ltd.
For further information:
President & Chief Executive Officer
Vice President, Finance & Chief Financial Officer
or visit the Company's website at www.marquee-energy.com.