TSX Venture Exchange
Trading Symbol: CNK
CALGARY, Jan. 24, 2012 /CNW/ - CanRock (CNK) or the "Company" has completed its previously announced Q4 3 well drilling program at
Provost, Alberta. The program targeted the oil-bearing Lower Mannville
formation with 2 verticals and 1 horizontal oil well (press released,
The Company's third well, 106/5-22-38-3W (100% WI) , a horizontal
development well targeting the Rex lithic channel system, has recently
been drilled, completed and tied-in to CanRock's 100% owned and
operated infrastructure. This location was drilled as a monobore and is
the first well drilled using this technology targeting the Rex channel
system in the Provost area. Significant cost savings over previous
horizontal drill programs were realized, along with increased
production operations flexibility. The well commenced production at 55
bbls of oil per day and is expected to gradually increase as water cuts
decline, due to the large quantities of water placed into the formation
during completion. The anticipated IP (30 day Initial Production
average) for this well is expected to be 75 bbls of oil per day. The
successful application of the monobore drilling technology will be
applied to future lithic channel horizontal drilling locations in the
Provost area, with additional cost savings expected in 2012.
CNK's first well, 103/04-29-38-3W4 (100% WI), a vertical Cummings
development location, was successfully drilled, completed and tied-in
last October, (press released, Nov. 10, 2011). The well IP'd over 50
bbls of oil per day and is currently producing 35 bbls of oil per day.
The Company's second Provost well, a vertical exploration well, was
drilled and subsequently abandoned as commercial hydrocarbons were not
Production from both successful wells will have a significant positive
impact on cash flow in 2012. All three wells qualified as Canadian
Exploration Expense (CEE) and Canadian Development Expense (CDE), as
defined by Canada Revenue Agency, have fulfilled the Company's
flow-through obligations for 2011.
CNK has also completed its previously announced 3D seismic program at
Provost as well as on those lands secured under a farm-in agreement
just south of the Company's core operations. CNK expects additional
drilling opportunities will be forthcoming upon final processing and
interpretation of its proprietary seismic data.
Continued success in developing the Provost property is expected to add
significant value to CNK's current asset base. The Company will
continue to focus on aggressively expanding and optimizing the Provost
assets throughout 2012 as well as targeting oil-based opportunities.
Forward-Looking Statements and Information: The forward-looking statements contained in this document are based on
certain key expectations and assumptions made by the Company. Although
the Company believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because the
Company can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated due to
a number of factors and risks. These include, but are not limited to
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures, the uncertainty of reserve estimates, the
uncertainty of estimates and projections relating to production, costs
and expenses, and health, safety and environmental risks), commodity
price and exchange rate fluctuations and uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures. Certain of these risks
are set out in more detail in the Company's most recent Management
Discussion and Analysis and annual information form which have been
filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this document are made as of
the date hereof and the Company undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
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 news
SOURCE CanRock Energy Corp.
For further information:
Greg T. Busby, President & CEO
CANROCK ENERGY CORP.
Dwight Fieseler, Chief Financial Officer
CANROCK ENERGY CORP.