CALGARY, Feb. 18 /CNW/ - Tuscany Energy Ltd. (TUS-TSXV) announces that the Company's second horizontal Dina oil well at Evesham, Saskatchewan, HZ 1A8-21-3B16-16-39-27W3, commenced production on January 16, 2010 and has produced 2,424 barrels to date. The well continues to produce at a restricted rate of approximately 84 barrels of oil per day (50 Bopd net) with less than a 5% water cut.
Tuscany is preparing a full development plan for the pool, which could include up to 30 horizontal oil wells with associated surface and water handling facilities. The drilling of the next horizontal well is planned for the second quarter of 2010. Tuscany's original horizontal Dina oil well came on stream in January 2009 and has cumulative production of 15,293 barrels to date and continues to produce 25 Bopd (15 Bopd net). Tuscany is the operator and holds a 60% working interest in the lands.
In addition to its existing Evesham and Macklin properties, Tuscany has acquired an interest in a total of 2,570 (837 net) acres on a developing Birdbear oil play in the Evesham-Senlac area which includes the addition of 640 (192 net) acres at a recent land sale.
Please refer to Tuscany's website at www.tuscanyenergy.com for more information on the Company's developing Dina oil play in Evesham, and other prospects in Saskatchewan. The production for the Dina pool is posted on the website and updated twice a month.
ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.tuscanyenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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.
SOURCE TUSCANY ENERGY LTD.
For further information: For further information: John G. F. McLeod, President, TUSCANY ENERGY LTD., Telephone: (403) 264-2398, Fax: (403) 261-4072; Robert W. Lamond, Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax: (403) 261-4072; TSX Venture: TUS, www.tuscanyenergy.com