VANCOUVER, Nov. 8, 2017 /CNW/ - Pinedale Energy Limited ("Pinedale" or the "Company") (TSXV: MCF), is pleased to provide an update on 2017 development and exploration activities occurring at the Company's non-operated working interest properties situated in the Pinedale gas field area, southwest Wyoming.
Pinedale Horizontal Program Update
As previously announced on September 19, 2017 the Company recently participated in the drilling and anticipated completion of a two-mile horizontal well on the east flank of Pinedale anticline. Pinedale's working interest in the horizontal well is 7.939458%. This well targeted the Lower Lance A section and encountered significant gas shows throughout the entire 10,300' lateral. Flowback was initiated on November 1st and on November 7 the well was flowing at 21 million cubic feet of natural gas equivalent per day (10% field condensate) with flow rates still increasing. The operator expects the clean-up period of the flow-back operation to continue for 2-3 weeks and has estimated the total horizontal well costs at US$9 million (approximately US$714 thousand net to Pinedale's working interest).
Well Participation Update
The Company approved an authorization for expenditure ("AFE") in early November 2017 to develop an additional directionally drilled vertical infill well in which the Company has a 21.25% working interest. The estimated gross cost of the AFE is US$2.9 million, or approximately US$618 thousand net to Pinedale's interest. To date in 2017 Pinedale has approved a total of 8 infill directional vertical development well AFE's (1.70 net) and 1 horizontal exploration well AFE request (0.0794 net) which were issued by the Company's operating partner. Of the 8 vertical development wells, 5 wells have been drilled, completed and are producing to sales with the fifth well placed on production November 1. A 6th well is drilled, logged, cased and waiting on completions and two locations are waiting on a drill rig. The wells that have been developed have been drilled from the Warbonnet 9-23 simultaneous operations pad ("SIMOPS pad"). One of wells waiting on a rig is situated on the Warbonnet 8-25 SIMOPS pad located one mile south of the Warbonnet 9-23 SIMOPS pad.
Pinedale recently non-consented 2 horizontal exploration well AFE's. The non-consent AFE elections were made prior to Pinedale receiving results from the initial horizontal exploration well that was developed from the Warbonnet 9-23 SIMOPS pad. Up to 29 additional horizontal targets are associated with the Warbonnet 9-23 SIMOPS pad or 32 potential targets in total.
Pinedale has recently received AFE's for half of the wells attributed to the Warbonnet 7-23 SIMOPS pad where 24 directional vertical well drill permits exist and a drill rig has mobilized. Pinedale has non-consented these proposed AFE's due to capital constraints.
Pinedale evaluates AFE well proposals on a case by case basis and is required to make an AFE election within a 30-day election period following receipt of an AFE pursuant to operating agreements applicable to Pinedale's properties. Pinedale's AFE election decisions are influenced by considerations that include internally generated projections of internal rates of returns, access to capital, well development scenarios and alternative well proposals.
About Pinedale Energy Limited
Pinedale Energy Limited is an independent oil and gas exploration and production company focused exclusively on its natural gas properties situated in the prolific Pinedale field area, within the Green River Basin of southwestern Wyoming. Pinedale, through its subsidiaries, owns non-operated interests in 17 oil and gas leases with an undivided working interest ranging from 11.56% to 21.25% in approximately 11,995 acres. At year-end 2016, the Company had gross proved reserves of approximately 95.5 billion cubic feet of gas and 842 thousand barrels of oil (101.5 billion cubic feet equivalent); 93% undeveloped.1
The Class A common shares of Pinedale Energy Limited are listed for trading on the TSX Venture Exchange under the symbol "MCF." Additional information on Pinedale Energy Limited is available on the SEDAR website at www.sedar.com or on the Company's website at www.PinedaleEnergy.com
Report of Netherland Sewell & Associates with an effective date of December 31, 2016 prepared in accordance with the definitions and guidelines set forth in the Canadian Oil and Gas Evaluation Handbook and in accordance with NI 51-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to: the flow rates and clean up periods. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipates", "expects", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management or the operator as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pinedale to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including the performance of the horizontal well and technical challenges in the clean-up of the horizontal well and additional potential horizontal targets. Although management of Pinedale have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Pinedale will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE Pinedale Energy Limited
For further information: Chris Schultze, Chief Operating Officer, [email protected], Pinedale Energy Limited, Suite 650 - 669 Howe Street, Vancouver, BC, Canada, V6C 0B4