CALGARY, Oct. 10, 2013 /CNW/ - Emerald Bay Energy Inc. (TSX Venture:
EBY) (the "Company"or "Emerald Bay") is pleased to provide an update on
recent activities in Texas.
At Wooden Horse the Company has completed the construction of all
production facilities and has begun pumping the recently drilled
Edwards Horizontal well, Kuhn 1H.
Emerald Bay President, Shelby D. Beattie, expounded, "It is typical
during initial phases of production for an Edwards horizontal well to
yield 100% water for a period of time before the oil cut is
established. This initial phase can last days or months as each well
can be very different; further, the optimization of the well and
facilities can also take some time. Kuhn 1H has now been pumping for
over two months.The facilities have functioned flawlessly to date, and
the first oil cut has now been observed."
The Company will continue fine tuning the pumping procedure to achieve a
consistent oil cut and initial oil production rate in the near future.
Also at Wooden Horse, the vertical wells Kuhn 1C and Imhoff 1 have been
producing for several weeks with the first load of oil having been sold
from Kuhn 1C in September. Just as with Kuhn 1H these vertical wells
take time to establish a consistent oil cut. The Company is confident
that the vertical wells will add a solid economic return to the Wooden
At Cottonwood Creek, the recently drilled Poenitz 1 well has completed
its initial testing phase. Unlike the Wooden Horse wells, this is
strictly an oil well with no water to handle. The Company is pleased
with the initial flow rates and the high grade of crude. Facilities
are being completed this week and Poenitz 1 will be producing full time
in the coming days. The Company has identified additional locations
and drilling of the second well will commence in the coming weeks.
At Nash Creek, the Company has recently received the Ground Water
Protection Determination which allows permitting for a salt water
disposal well to proceed. It is anticipated that the permit process
will take 60-90 days and the well will be drilled once the permit has
been granted. Similar to the development of the Wooden Horse play, the
salt water disposal well is the key initial step for developing the
Nash Creek play.
At Holmes Lake, land acquisition efforts have successfully concluded for
the initial exploratory stage of the project. It is expected that
drilling of the initial test well will take place in early 2014.
In Atascosa and Medina Counties Texas, Production Resources Inc.
("PRI"), a private company in which Emerald Bay has 25% ownership,
continues to move ahead with drilling new wells as well as workovers of
existing wells. PRI has seen production double from 50 bpd to 100 bpd
in the past year. With the addition of the recently acquired wells in
the Somerset Field and the re-perforating program that PRI is
undertaking, it is anticipated that PRI will see production double
again in the next six to nine months and sustainable growth on existing
land holdings for several years to come.
About Emerald Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas
producer with production properties in Western Canada and South Texas.
The common shares of Emerald Bay trade on the TSX Venture Exchange
under the symbol "EBY". Please visit www.emeraldbayenergy.com.
If you would like to receive press releases via email please contact firstname.lastname@example.org. Please specify "Emerald Bay Press Releases" in the subject line.
Neither 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.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect", "plan", "intend", "anticipates",
"projects", "potential" or similar expressions.. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Forward-looking statements are statements that are not
Information inferred from the interpretation of drilling results may
also be deemed to be forward looking statements, as it constitutes a
prediction of what might be found to be present when and if a well is
actually developed. BOE's may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on energy
equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. The reader
is cautioned that assumptions used in the preparation of such
information, which are considered reasonable by Emerald Bay at the time
of preparation, may prove to be incorrect. Actual results achieved will
vary from the information provided and the variations may be material.
There is no representation by Emerald Bay that actual results achieved
will be the same in whole or part as those indicated in the
forward-looking statements. Forward-looking statements in this
document include statements regarding the Company's exploration,
drilling and development plans, the Company's expectations regarding
the timing and success of such programs. In particular, forward-looking
information in this news release includes, but is not limited to,
statements with respect to: pipeline acquisitions and leasing; pipeline
permits, pipeline construction, production estimates, drilling
operations, completion operations, funding and development goals.
Although we believe that the expectations reflected in the
forward-looking information are reasonable, there can be no assurance
that such expectations will prove to be correct. We cannot guarantee
future results, level of activity, performance or achievements.
Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in the
forward-looking information. Factors that could cause or contribute to
such differences include, but are not limited to, fluctuations in the
prices of oil and gas, uncertainties inherent in estimating quantities
of oil and gas reserves and projecting future rates of production and
timing of development activities, competition, operating risks,
acquisition risks, liquidity and capital requirements, the effects of
governmental regulation, adverse changes in the market for the
Company's oil and gas production, dependence upon third-party vendors,
and other risks detailed in the Company's periodic report filings with
the applicable securities regulators.
SOURCE: Emerald Bay Energy Inc.
For further information:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at email@example.com,
CHF Investor Relations:
Robin Cook, Senior Account Manager, (416) 868-1079 x228, firstname.lastname@example.org.