Winstar Provides Operational Update on its Tunisian Activities

CALGARY, June 7, 2011 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) is pleased to announce that the Company has executed a contract with Helmerich & Payne International Drilling Co. ("H&P") to provide a 1,500 horsepower drilling rig and associated services for two firm operations with the option for two additional operations on the 100% owned and operated Chouech Essaida and/or Ech Chouech concessions in Southern Tunisia.

The two firm operations at Chouech Essaida involve repairing the Chouech Essaida #9 well (CS #9) and the twinning of Chouech Essaida #8 well (CS #8bis) to re-establish oil production from these two locations in the Triassic Chouech Essaida oil field.

The first operation, expected to take approximately two weeks and cost $US 3 million, involves the remedial cementing and subsequent re-perforating of the pay zones in CS#9 to re-establish down-hole segregation between a gas/condensate zone and an oil zone, both established hydrocarbon reservoirs.  This well has been off line since late Q4 2010 and was producing approximately 500 barrels of oil equivalent per day (boepd) prior to the wellbore mechanical failure.

The second operation is to drill a twin well to the CS#8S well and will take approximately one month and cost $US 7 to 8 million.  This new well is expected to intersect the same two Triassic zones tested during the sidetrack operation conducted in 2010 on the original CS #8 well. (see May 25, 2010 News Release). The 2010 CS #8S well was on production test for 5 days at a final production rate of 730 barrels of oil per day (bopd), but the wellbore was rendered unusable due to a subsequent down-hole mechanical failure.  If successful, the new CS #8bis well is anticipated to be capable of 500 to 800 bopd of production plus associated solution gas.

The review of the two additional optional operations is ongoing.  Under consideration is the drilling of a new Triassic well (2,500 meters depth with an expected cost of $US 7 to 8 million) and/or the drilling of a new Silurian well (4,400 meters depth with an expected cost of $US 15 million) both within the Chouech Essaida Concession. Winstar expects to finance the remainder of its 2011 capital program from existing working capital, 2011 cash flow and if necessary short term bank debt.

The same H&P rig was used to drill Winstar's Chouech Essaida Silurian #1 well (CS Sil #1) in the fourth quarter of 2010. In addition, this rig has been operating continuously in Tunisia for several years drilling numerous wells to similar depths for other operators on nearby exploration permits and concessions. The rig is expected to begin moving to Chouech Essaida as soon as possible, with the CS #9 remedial work-over expected to commence later this month.

Winstar is currently producing about 1,600 boepd. Production has been impeded by mechanical issues at the Chouech Essaida and Sabria Concessions. The onset of new field operations with the arrival of the H&P rig, plus the installation of a gas plant at CS Sil #1 to enable long term production from the Silurian (anticipated plant start-up in the third quarter of 2011) could increase production to 3,000 boepd by late in the third quarter or early in the fourth quarter of 2011.

Forward-Looking Statements

This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify 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 such forward-looking statements. Such statements reflect the Company's current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause Winstar's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Winstar will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goal, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. The risks to which the Company is subject include those of the oil and gas industry in general including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions to the effect that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

Winstar Resources Ltd. is a Calgary based junior oil and gas company, which explores for, develops, produces, and sells crude oil, natural gas liquids and natural gas in Tunisia and Romania. Winstar's common shares trade on the Toronto Stock Exchange under the symbol WIX.

SOURCE Winstar Resources Ltd.

For further information:

Mr. David Monachello
President
Phone: +1 403 513 4200
E-mail : dmonachello@winstar.ca

Or

Mr. Bradley Giblin
Chief Financial Officer
Phone : +1 403 513 4207
E-mail : bgiblin@winstar.ca

Or

Mr. Charles de Mestral
Chief Executive Officer
Phone: +41 22 361 14 45
E-mail: cdemestral@winstar-resources.ch 

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Winstar Resources Ltd.

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