CALGARY, July 28 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) provides an update on the following Operations in Tunisia:
- production update for the recently drilled well, Chouech
Essaida 11 ("CS No. 11");
- well operations at Chouech Essaida 8S ("CS No. 8S");
- update on planning for the Company's first Silurian Acacus test in
Tunisia at the well Ech Chouech Sud 1 ("ECS No. 1"); and
- Tunisian production update
Production Update for CS No. 11 well: The well, CS No. 11 whose initial test rates were press released June 4, 2010 is producing at a stable rate of approximately 600bbls/d from the lower two zones in the well compared to the initial test rate of approximately 700bbls/d. The upper zone that recorded an initial test rate of 150bbls/d remains suspended but should be produced in the future when the lower zones' production diminishes sufficiently to allow commingled production from all zones in the well.
Well Operations at CS No. 8S: Pursuant to the Press Release dated May 25, 2010 regarding initial test rates for the well CS No. 8S, the Company reports that work in the field is ongoing to establish production from the subject well.
Following the initial test period, the well was shut in for reservoir pressure measurements and subsequently opened to the Central Production Facility (the "CPF") for permanent production operations but production could not be re-established. Following a detailed internal review, the Company's interpretation of the well's behaviour is that upon shutting the well in for reservoir pressure measurements, a blockage between the wellbore and the reservoir developed restricting flow from the reservoir into the wellbore. The Company anticipates that once this blockage is identified and then removed or by-passed, production can be re-established.
The operational plan is to clear some remaining perforating debris and material that was left in the hole during the original perforating operation; re-perforate the same zones that produced during the initial test and then place the well on production to the CPF. The Company currently forecasts that this work should be completed in August of this year.
The Company will provide further updates on the well's condition when appropriate.
ECS No. 1 Re-entry Update: The Company continues to plan its first test of the Silurian Acacus Formation at its Ech Chouech concession in southern Tunisia. Preparations for the upcoming re-entry operation at the well ECS No. 1 are progressing on schedule. Civil works are nearing completion and all major materials have been ordered. It is anticipated that the recently contracted rig will be released to Winstar from another operator by the end of August. The Company is currently forecasting well operations to begin later in September of this year.
Tunisian Production Update: The Company's current total production from Tunisia is in the 2100-2300 boepd range (not including CS 8S potential) which compares to an average production of 1505 boepd for Q1, 2010. The variability in the production depends, in particular, on gas sales volumes from Chouech Essaida which in turn, affects the high gas - oil ratio ("GOR") well Chouech Essaida 5 ("CS No. 5") that has an approximate capacity of 100bopd and is currently shut in for gas conservation.
References herein to "boe" mean barrels of oil equivalent and is derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based upon an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References herein to "boepd" means barrels of oil equivalent per day.
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, Romania and Hungary. Winstar's common shares trade on The Toronto Stock Exchange under the symbol WIX.
SOURCE Winstar Resources Ltd.
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