CALGARY, Jan. 4 /CNW/ - Sure Energy Inc. (SHR, TSX) ("Sure Energy" or "the Company") is pleased to report the production test results of its 11-2 Redwater North horizontal well. The Viking formation was tested for 50 hours and flowed a total of 569 barrels of clean light oil and 442 mcf of solution gas. Rates were restricted through a 3/8 inch choke with drawdown estimated at 50 percent. The company expects the well to produce in excess of 200 barrels of oil per day initially while flowing and to stabilize at 120-150 barrels of oil per day when placed on pump. The Company's two offsetting producers flowed for approximately a month.
The well is 100% owned by the Company and will qualify for the Alberta Government's Horizontal Oil New Well Royalty Rate of 5% for 18 months, to a maximum of 50,000 barrels. The well will be placed on production in early February following the drilling and completion of a follow up well at 12-2 which will be drilled from the same surface lease. This well is expected to spud before the end of this week, and will be the seventh and last well planned for North Redwater in the current program.
The Company recently completed the drilling of the sixth well in the program which evaluated a less proven 3 section 100% working interest land block one mile to the north of Sure's current production base. This well should be production tested over the next two weeks.
Including the 11-2 well Sure Energy has experienced 100% success rate with its North Redwater horizontal drilling program to date.
The Company owns 7 3/4 sections of 100% working interest lands in the Redwater North Viking play. These lands have ERCB approved holdings allowing up to 4 wells per quarter section. In total, Sure Energy has 7,495 acres of net undeveloped land on the Redwater Viking oil trend.
Sure Energy Inc. is a publicly traded oil and gas exploration and development company listed on the Toronto Stock Exchange under the symbol "SHR".
In this press release the calculation of barrels of oil equivalent (BOE) is calculated at a conversion rate of 6,000 cubic feet (Mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. BOEs may be misleading particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or Sure Energy's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Sure Energy's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Sure Energy's stated expected timing for the Redwater North horizontal wells to be on production is forward looking information. Sure Energy's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Sure disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
SOURCE Sure Energy Inc.
For further information: please visit our website at www.sureenergyinc.com or contact: Mr. Jeff Boyce, Chairman and CEO, Mr. Chris Baker, President and COO, Mr. Lance Wirth, Vice President, Finance and CFO, Phone: (403) 410-3100, Fax: (403) 410-3111, Email: email@example.com