CALGARY, Dec. 22 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the Company") (TSX: WIX) provides an update on the drilling of Chouech Essaida Silurian #1 Well ("CS Sil #1"), on its 100% owned and operated Chouech Essaida Concession in Southern Tunisia.
Winstar has successfully drilled its first Silurian exploration well CS Sil #1, to a total depth of 4,390 metres, ahead of budget in terms of both time and costs. The well, spud in early November 2010, was drilled on an Ordovician structural high (anticline) defined by 3D seismic with the objective to test the commercial hydrocarbon potential of the Silurian Acacus Sandstone and a shallower secondary target in the Triassic TAGI Sandstone.
Logging operations are nearing completion. Open-hole log data (including an MDT - Modular Formation Dynamic Tester) and well-site geological measurements and observations indicate hydrocarbon potential in the Silurian Tannezuft and Acacus sandstones, Devonian Ouan Kasa sandstones and the Triassic TAGI sandstones.
The final production casing is scheduled to be installed this weekend. Testing of prospective Silurian zones is expected to commence in early January 2011 once the rig has been released and moved off location. The multi-zone testing program is expected to cumulatively take 2 to 3 weeks after which the Company will release the results.
The Company cautions that open-hole log results are interpretative and that a comprehensive production testing program is required to estimate the technical reservoir parameters and the longer term productive capacity of the well.
References herein to "boe" mean barrels of oil equivalent and is derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based upon an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References herein to "boepd" means barrels of oil equivalent per day.
This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause Winstar's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Winstar will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goal, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. The risks to which the Company is subject include those of the oil and gas industry in general including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions to the effect that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.
Winstar Resources Ltd. is a Calgary based junior oil and gas company, which explores for, develops, produces, and sells crude oil, natural gas liquids and natural gas in Tunisia, Romania and Hungary. Winstar's common shares trade on The Toronto Stock Exchange under the symbol WIX.
For further information: For further information:
Mr. Charles de Mestral
Chief Executive Officer
Phone: +41 22 361 14 45
E-mail: [email protected]
(Note: Mr. de Mestral is based in Europe, in a time zone eight hours ahead of Calgary time)
Mr. David Monachello
Phone: +1 403 513 4200
E-mail : [email protected]
Mr. Bradley Giblin
Chief Financial Officer
Phone : +1 403 513 4207
E-mail : [email protected]