/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE
TSX Venture Exchange - symbol "AUZ"
CALGARY, Aug. 29 /CNW/ - Ausam Energy Corporation ("Ausam" or the
"Company") is pleased to announce success in drilling its Wethorford Prospect
Wethorford Prospect (Liberty County, Texas)
The RDH Farms 1 well on the Wethorford prospect has been drilled to a
total depth of 13,826 feet and encountered three prospective zones, all of
which appear to contain gas. The three zones are the 1st, 2nd and 3rd Sands of
the Cook Mountain formation.
Ausam President and CEO Mark Avery stated, "The Company is very pleased
with the results of the initial production tests in the Wethorford prospect
and its potential for multiple producing zones, particularly as these results
enhance the Company's other two Liberty County prospects."
Initial testing of the deepest of the three prospective zones, the 3rd
Sand (at 13,105 feet), resulted in an encouraging test flow rate of 2.2 MMcf/d
and 24 barrels of condensate per MMcf through a 12/64 inch choke. Log analysis
indicates that the primary objective, the 2nd Sand (at 12,866 feet) also has a
commercial gas accumulation within an estimated 5 to 10 feet of potential pay.
Additionally, log analysis of the Cook Mountain 1st Sand (at 12,434 feet)
indicates an estimated 3 to 6 feet of gas pay.
The well is undergoing further testing and evaluation in order to
determine the completion program, which may include stimulation through
fraccing or another procedure.
The Company holds a 45% working interest in the subject well through its
wholly owned subsidiary, Noram Resources, Inc. ("Noram"). The well is operated
by Ballard Exploration Company, Inc (50% working interest) and 100 Wall Energy
Partners II LP holds a 5% working interest.
Noram also owns 100% of two similar prospects in Liberty County, the
Nolte Marsh and Wiseman prospects. The Company believes the prospectivity of
both has been enhanced by the results so far at Wethorford.
T-Patch Prospect I (Starr County, Texas)
The Company has also drilled the T-Patch I well to a total depth of
9,800 feet. Log analysis indicates that potentially productive gas was
discovered, but the Company has elected not to complete the well. The Company
has temporarily abandoned the well while it evaluates offers from a number of
local operators regarding the sale, or trade, of this well and surrounding
acreage in consideration for cash and/or interest in another prospect. Log
analysis indicates that an estimated 20 to 25 net feet of laminated potential
pay was discovered in the primary objective, the Reklaw formation. The Company
holds a 90% working interest in the well through Noram.
The Company, through Noram, has embarked on an active drilling campaign
in the US and expects to spud an additional three wells prior to 31 December
Cautions Regarding Forward-Looking Statements
Forward-looking statements (often, but not always, identified by the use
of words such as "expect", "may", "could", "anticipate" or "will" and similar
expressions) may describe expectations, opinions or guidance that are not
statements of fact. Forward-looking statements are based upon the opinions,
expectations and estimates of management of Ausam as at the date the
statements are made and are subject to a variety of known and unknown risks
and uncertainties and other factors that could cause actual events or outcomes
to differ materially from those anticipated or implied by such forward-looking
statements. Those factors include, but are not limited to risks, uncertainties
and other factors that are beyond the control of Ausam, risks associated with
the oil and gas industry, commodity prices and exchange rate changes,
operational risks associated with exploration, development and production
operations, delays or changes in plans, risks associated with the uncertainty
of reserve estimates, health and safety risks and the uncertainty of estimates
and projections of production, costs and expenses. In light of the risks and
uncertainties associated with forward-looking statements, readers are
cautioned not to place undue reliance upon forward-looking information.
Assumptions relating to certain forward-looking information contained in this
press release are set out herein. Although Ausam believes that the
expectations reflected in the forward-looking statements set out in this press
release or incorporated herein by reference are reasonable, it can give no
assurance that such expectations will prove to have been correct. The
forward-looking statements of Ausam contained in this press release, or
incorporated herein by reference, are expressly qualified, in their entirety,
by this cautionary statement.
Ausam is engaged in oil and gas exploration and development and, through
its U.S. subsidiary, Noram Resources, Inc., acquired a diverse portfolio of 20
oil and gas leases and prospects in Texas, Louisiana, Mississippi, Alabama and
Arkansas. Ausam, through its Australian subsidiary, Ausam Resources Pty Ltd,
is also engaged in oil and gas exploration in Queensland, Victoria and Western
Australia. Ausam's growth strategy includes the organic development of its
current holdings and selective corporate transactions. Ausam is a public
company trading on the TSX Venture Exchange under the symbol AUZ.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of Ausam in any jurisdiction. The
securities of Ausam have not and will not be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), or the securities
laws of any state of the United States, and may not be offered or sold in the
United States absent registration or an applicable exemption therefrom under
the 1933 Act and the securities laws of all applicable states.
For further information:
For further information: Mark G. Avery, President and CEO,
firstname.lastname@example.org; Alastair J. Robertson, Chief Financial Officer,
email@example.com; Ausam Energy Corporation, 1430, 1122 - 4th Street
S.W., Calgary, Alberta, T2R 1M1, Tel: (403) 215-2380, Fax: (403) 206-1457, Web