CALGARY, March 15, 2012 /CNW Telbec/ - Exall Energy Corporation ("Exall" or the "Company") (TSX: EE) is pleased to announce the test production flow rates on the third successful 3D seismic channel anomaly in its Marten Mountain, Mitsue operating area. Exall's public filings can all be found at www.exall.com or www.sedar.com.
- Current Productive Capacity of 2,117 BOEPD
- Exall's recently drilled third 3D seismic Gilwood A Sand well tested swabbing 604 BOEPD (net 398 BOEPD) of 40° API sweet oil with a small amount of solution gas
- The pipeline to Exall's first two 3D seismic test wells has been completed and the new wells are producing through the Company facilities
- 100% of the 2012 3D seismic program has been cleared, surveyed and drilled, and 61% of the program has been shot
Please click here to see the table on Current Production: http://files.newswire.ca/357/Current_Production.pdf
3D Seismic Gilwood "A" Well Test
The third Gilwood A Sand well drilled on an interpreted channel-type anomaly identified on the 2011 3D seismic program has been completed and tested. The 14-12 well swab-tested an average of 604 BOEPD over a 5 day, 12 hour per day production test period (net 398 BOEPD) of 40° API sweet oil with a small amount of solution gas. The testing was terminated to allow Exall to equip the well for production and tie the well into the newly completed pipeline. It is expected to be on production prior to the end of March at a New Oil Well Production Period allowable rate of approximately 314 BOPD (208 BOPD net).
To date during the first quarter of 2012, Exall has drilled 3.0 gross wells (2.13 net wells), and completed the drilling of 2.0 gross (1.32 net wells) wells spud in December, 2011. Of the five wells rig released during the first quarter of 2012, two have been completed and are producing and three are in various stages of completion.
Two wells (1.45 net) have been spud and are currently drilling ahead. One well will be a water source well for the amended South Water Flood; the other well is the fourth well on the seismically defined channel.
3D Seismic Activities
During the fourth quarter of 2011, Exall permitted a 244 square kilometer (86 section) 3D Seismic program to be shot during winter months only. The program was officially kicked off mid-December 2011. It is anticipated that 51 of the 86 sections of the 3D Seismic Program will be shot before spring break-up 2012, with the remaining 35 sections to be completed in 2013. Of the 51 sections 100% have been cleared and drilled with 61% having been shot. Exall anticipates that that acquisition phase of the 2012 3D seismic program will be completed by March 26, 2012.
The full 2012 - 2013 3D Seismic Program is approximately 12 times the size of the 3D Seismic Program shot in the winter of 2011. Processing and interpretation of the 2012 3D Seismic Program should be complete by June 2012.
On March 12, 2012 Exall completed construction of a pipeline extension to the 3-25 pad site from which the 10-24 and 2-25 3D seismic test wells were drilled. With the completion of the pipeline Exall now has the northern extension of the Marten Mountain A Sand trend connected to the central battery facilities. Future drilling on the northern extension will require only minor tie-in costs, including the 14-12 well, currently being equipped for production, and the drilling 6-25 well. The 14-12 well is expected to be tied in and on production before the end of March.
Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta. Exall Energy is currently developing the new Mitsue area Marten Mountain discovery in north-central Alberta.
Exall Energy currently has 62,328,854 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE.
This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.
For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
PDF with caption: "Current Production.pdf". PDF available at: http://stream1.newswire.ca/media/2012/03/15/20120315_C4719_DOC_EN_11182.pdf
For further information:
Exall Energy Corporation
Frank S. Rebeyka
Renmark Financial Communications Inc.
Maurice Dagenais: firstname.lastname@example.org
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Tel.: (514) 939-3989 or (416) 644-2020