VANCOUVER, Oct. 25, 2017 /CNW/ - Eros Resources Corp. (TSX.V: ERC) ("Eros" or the "Company") together with its project partner and operator, Westcore Energy Ltd. ("Westcore" or "WTR") wish to provide an update concerning the commissioning of the three oil wells completed and brought on production in the third quarter at the Flaxcombe heavy oil field located 30 kilometres west of Kindersley, Saskatchewan.
The 6-13 well was completed on August 27 and has been on production for over 47 days, showing an average production rate over the first thirty days (IP-30) of 16.7 barrels per day (15 barrels to Eros). The well was shut-in for 10 days to be reloaded and primed and has been in continuous operation for the past two weeks at around the average IP-30 rate.
The 1-13 well, completed on September 4, 2017, has been on production for 24 of the 49 days since. The well ran for eighteen days until it became sand-plugged and required reworking to flush the sand out. That work was delayed by a combination of poor weather and the availability of equipment to clean the wellbore. Production results will be made available once the well completes its 30-day test production period.
The 9-13 well continues to produce at a steady rate in line with the IP-30 test results announced on September 20, 2017, and has only required service for three of the 80 days since it was completed.
"Despite some commissioning challenges with wells 1-13 and 6-13 we remain optimistic that the program will meet our production expectations. By its very nature, CHOPS wells go through a variable start-up phase but can settle in and remain in production with low decline rates for extended periods. Our partner and operator, Westcore, has done an excellent job managing this initial production phase," stated Ron Stewart, President and CEO of Eros.
Eros holds a 90% beneficial working interest in the three wells until it recovers its initial capital investment of approximately $1.6 million, and will hold a 50% interest thereafter. Additionally, Eros has the right to participate in Westcore's next two programs under the same terms. Eros recently announced that it had entered into a three-way Joint Operating Agreement with WTR and Saturn Oil +Gas Inc. to develop three sections of land in the Flaxcombe area. The three parties are currently preparing a budget and plan to develop this ground.
Eros Resources Corp. is a Canadian public company focused on the exploration and development of resource projects in North America. Eros has as its prime business objective the identification, acquisition and exploration of advanced resource projects with a North American focus. A secondary focus of the Company is to make strategic investments with a global focus and a diverse commodity base. The Company's expertise in the resource sector supports the selection of these strategic investments.
On behalf of the Board of Directors of
Eros Resources Corp.,
President & CEO
Cautionary note regarding forward-looking statements
Certain statements made and information contained herein may constitute "forward looking information" and "forward looking statements" within the meaning of applicable Canadian and United States securities legislation, including, among other things, this press release includes references to mineral resources and future potential forecast economics of extracting those resources. There is no certainty that any portion of the resources will be confirmed with greater certainty. If confirmed, there is no certainty that it will be commercially viable to extract any portion of the resource. There is no certainty that access to the resource area will be re-established, and if access to the resource area is blocked for an extended period of time, or permanently, there is no certainty that any compensation will be received by the Company. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information, including the re-establishment of physical access to the property, the availability of adequate and secure sources of funding to construct the extraction facilities required to extract the mineral resources, prevailing commodity prices, the receipt of regulatory approvals, environmental risks and the performance of personnel. While the Company considers its assumptions to be reasonable as of the date hereof, forward-looking statements and information are not guarantees of future performance and readers should not place undue importance on such statements as actual events and results may differ materially from those described herein. The Company does not undertake to update any forward-looking statements or information except as may be required by applicable securities laws.
Oil and Gas Advisory
Production rates disclosed herein are preliminary and are not determinative of the rates at which the wells will continue to produce and decline thereafter and may not necessarily be indicative of the long-term performance or estimated ultimate recovery.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
SOURCE Eros Resources Corp.
For further information: Ron Stewart, President & CEO, [email protected]