CALGARY, Jan. 26 /CNW/ - Tuscany Energy Ltd. (TUS-TSXV) announces that the Company's second horizontal Dina oil well, Tuscany et al Evesham HZ 1A8-21-3B16-16-39-27W3 commenced production on January 16, 2010. The well is currently producing at a restricted rate of approximately 80 barrels of oil per day with less than a 5% water cut.
This is the second successful horizontal well drilled in this Dina pool, on a 1,040 acre prospect. Tuscany is preparing a development plan for the pool. Based on geology and proprietary 3D seismic, full development could require more than 30 horizontal oil wells, with associated surface and water handling facilities. The drilling of the next horizontal well is planned for the second quarter of 2010. Tuscany is the operator and holds a 60 % working interest in the lands.
Tuscany plans to focus its efforts on its Saskatchewan production, development and exploration opportunities. In addition to its existing Evesham and Macklin properties, Tuscany has acquired an interest in 1,934 acres (650 net) on a developing Bird Bear oil play, located in the Evesham-Senlac area.
Please refer to Tuscany's website at www.tuscanyenergy.com for more information on the Company's developing Dina oil play in Evesham, and other prospects in Saskatchewan.
ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.tuscanyenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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.
SOURCE TUSCANY ENERGY LTD.
For further information: For further information: John G. F. McLeod, President, TUSCANY ENERGY LTD., Telephone: (403) 264-2398, Fax: (403) 261-4072; Robert W. Lamond, Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax: (403) 261-4072; TSX Venture: TUS, www.tuscanyenergy.com