CALGARY, Oct. 24, 2012 /CNW/ - PanTerra Resource Corp. ("PanTerra" or the "Company") announces that it has commenced production from two of the three wells drilled this past summer (Phase One) at its Tomahawk property. Initial average gross production rates for the past seven days from the first two wells amounts to 230 BOPD (based on field estimates). The third well has been completed and stimulated and is presently being set up for production. PanTerra emphasises that these are initial production rates and based on offsetting production history, the Company expects a 20 -30% decline in the first month of production. PanTerra's net share is 45% or 103 BOPD (with no capital investment by PanTerra). Current total production net to PanTerra at its Tomahawk property is now at 143 BOPD, excluding rates as yet to be determined from the third well.
As a result of the recent success on phase one, the Company announces that it proceeding with the second phase of its Tomahawk development program. The Company currently has one additional well licensed and is permitting two other locations.
PanTerra is a diversified junior public oil and gas company listed on the TSX Venture Exchange ("TSXV") under the symbol "PRC", with holdings in both conventional and unconventional projects in Western Canada. The Corporation has an operated production base of 188 BOPD and 100mcf/day gas (based on field estimates) with excellent optimization and exploitation potential. Company information can be found at: www.panterraresource.com.
Neither the 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 contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Company assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Due to the nature of the oil and natural gas industry, budgets are regularly reviewed in light of the success of the expenditures and other opportunities which may become available to the Company.
SOURCE: PanTerra Resource Corp.
For further information:
Fred P. Rumak P.Geol.
President and C.E.O. at 403-261-5900
Jake Pronk P. Geol
V.P. Exploration at 403-261-5900