CALGARY, Alberta, April 13 /CNW/ -- Source Petroleum Inc. (OTC Bulletin
Board: SOPO, "Source Petroleum" or "Company") is pleased to announce that the
first test well -- HZ Peace River 1-29-83-19 W5M -- encountered more than 20
meters (60 feet) of high quality reservoir section saturated with heavy oil in
the Blue Sky formation at Harmon Valley, Peace River oil sands district,
The drill program confirmed an excellent oil saturation section of the
Blue Sky formation. Core porosity and core permeability averaged 36 % and 5100
md respectively. Oil quality in the reservoir section Observed API ranged from
8 to 9 API.
Approximately 17.5 bbls of heavy oil were produced via cold flow on a
limited test. The testing of the well was limited, restricting higher volumes
and the ability to change to a bigger pump due to spring break up and poor
A longer term test using a larger pump of the horizontal lateral at
100/01-29-083-29 W5M/0 will resume when road conditions permit.
Total fluid produced during the production test was 231.8 m cubed. It is
interesting to note that the well produced approximately 170 m cubed of water
before significant indication of oil. It is also interesting to note that the
fluid level continued to drop throughout the test meaning if the water
deliverability was high the fluid level would not have dropped as
The first well of the proposed program, HZ Peace River 1-29-83-19 W5M,
targeted the Bluesky - Gething formation. The Core information and a
horizontal leg will assist in developing a plan for a possible primary and
secondary oil recovery scheme.
AJM has assigned a contingent resource of 247 MMbbls and a [p10] case of
323 MMbbls on the Harmon Valley heavy oil asset situated in the Alberta Peace
River Arch heavy oil district.
Furthermore, the report conducted by AJM was prepared prior to the
drilling of the first horizontal well on the property which is currently under
evaluation and the Company looks forward to providing a new engineering report
as early as possible.
Preliminary economics by AJM, based on only 5% Cold flow recovery and
12.5% SAGD recovery have been assigned a Net Present Value [discounted at 10%
[NPV10] at forecast price of $217.5 Million.
Ultimate recoveries of 40% - 70% using Cold flow and SAGD may be achieved
of the total oil in place as an industry average in heavy oil.
Source Petroleum Inc., with 50% participation interest, along with its
joint venture partner are targeting operations in the same Blue Sky Gething
formation with potential ooip reserves of up to 320 million barrels.
For further information please refer to the Website of Source Petroleum
at www.source-petroleum.com. Further information will follow as it becomes
Except for the historical and present factual information contained
herein, the matters set forth in this release include statements of
management's current expectations. Statements identified by words such as
"expects," "projects," "plans," "believes," "estimates," "may" and similar
expressions are forward-looking statements within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements, include the statement that "the drill
program confirmed an excellent oil saturation of the Blue Sky formation," "if
the water deliverability was high the fluid level would not have dropped as
significantly," "ultimate recoveries of 40% - 70% using Cold flow and SAGD may
be achieved of the total oil in place as an industry average in heavy oil,"
and "the Blue Sky formation having ooip reserve of up to 320 million barrels"
are subject to risks and uncertainties that may cause actual results to differ
materially, including the possibility that the historical data may be
inaccurate or misinterpreted, the anticipated benefits from our operations
cannot be fully realized, the possibility that commodity prices, costs or
difficulties related to the conduct of its business will be greater or lesser
than expected, and the impact of competition and other risk factors relating
to our industry will be greater than expected, all as detailed from time to
time in the company's reports filed with the SEC. The company disclaims any
responsibility to update these forward-looking statements.
Sam Charanek, President and CEO
Source Petroleum Inc.
620, 304 8th Ave SW.
Calgary AB. T2P-1C1
IR INQUIRIES: Toll free 866 913 SOPO (7676)
For further information:
For further information: Sam Charanek, President and CEO of Source
Petroleum Inc., investors, 866-913-7676, or firstname.lastname@example.org