Winstar Updates Q1 2008 Operational Results

    CALGARY, March 25 /CNW/ - Winstar Resources Ltd. ("Winstar" or "the
Company") (TSX: WIX) is pleased to provide an update on its Tunisian,
Hungarian and Canadian operations conducted during the first quarter of 2008.


    -   Tunisia
           -  Chouech Essaida and Ech Chouech concessions (100% working
                 -  CS No.8 was drilled and yielded initial production test
                    of 555 boepd flowing from two zones;
                 -  CS No.6 was re-completed as a water injection well after
                    testing revealed minor amounts of hydrocarbons;
                 -  EC No.1 was re-completed and is currently being tested;
                 -  CS No.9 location was built and is anticipated to spud in
                    May 2008;
                 -  Winstar is currently acquiring a 400 square kilometre 3D
                    seismic program with anticipated completion in early
                    summer 2008.
           -  Sabria Concession (45% working interest)
                 -  Sabria 12 location was built and is anticipated to spud
                    by late summer 2008.

    -   Hungary
           -  Torokkoppany Mining Plot and Igal ll Exploration Permit
                 -  Winstar acquired 42 kilometres of 2D seismic and surveyed
                    the Alsoleperd No.1 exploration location which is
                    anticipated to spud in summer 2008.

    -   Canada
           -  Strachan well was re-entered, deepened, and the reservoir was
              treated with acid stimulation. Winstar is currently attempting
              to establish production.


    Chouech Essaida and Ech Chouech Concessions (100% Working Interest)

    - Chouech Essaida No.8 (CS No.8) Development Well

    Following a 2 month drilling and completion program, and ensuing
production tests of three potentially productive zones, the Company announces
that CS No.8 recorded initial combined potential of 555 boepd of hydrocarbons
from 2 zones in the Triassic reservoir.
    CS No.8 has been tied into the 100% owned central production facility.
The well is expected to be placed on production from one of the two tested
zones within 7-10 days.
    The following is a summary of the 24 hour flow test data for the two
productive zones from this well. The Company cautions that the initial test
rates may not reflect the long term productive capacity of the well.


    Test                                                   Wellhead    Choke
    No.    Interval    Oil/cond    Gas     Total   Water   pressure    size
              (m)      (bbls/d) (mscf/d)  (boe/d) (bbls/d)   (psi)   (inches)
    2     2446.5-47.5     119      120      139      325      126      13/64
    1     2460-61         391      152      416        0       76      32/64
    Total                 510      272      555      325

    The Company is pleased with the initial test results at CS No.8, as they
confirm the Company's geological interpretation of the Triassic reservoirs and
serve to further extend the field. The production also provides significant
100% interest, high netback, incremental oil volumes at a time of historically
high oil prices.

    - Chouech Essaida No.9 (CS No.9) Development Well

    The Company believes that there is considerably more Triassic potential
in the Chouech Essaida concession, and has completed the civil works
construction of the next well, CS No.9. This well is expected to spud in
May 2008 using the Foradex rig already located in Tunisia. If the Company does
not encounter any unanticipated equipment delays or mechanical problems,
CS No.9 is expected to be drilled, completed and on production by late summer

    - Re-completions at pre-existing development wells Chouech Essaida No.6
    (CS No.6) and Ech Chouech No.1 (EC No.1)

    The Company re-entered CS No.6, and after testing revealed only
insignificant amounts of hydrocarbons, subsequently converted the well to a
water disposal facility. Waste water management has been a priority for the
Company, and this well affords ample capacity for the near term requirements.
    At the Ech Chouech concession, EC No.1 is currently being swabbed in an
effort to establish oil production from the Devonian producing horizon. The
Company will install artificial lift in the well if the operation is
successful. EC No.1 last produced in 1991, when it was suspended due to
downhole failure after having produced approximately 162,000 barrels of oil

    Gas Production from Chouech Essaida
    The Company has been attempting to resolve issues involved with the sales
of its solution gas from the Chouech Essaida concession for the past 6 months.
Currently, the Company forecasts that natural gas sales will be initiated by
late summer 2008 after repairs to the existing pipeline have been completed.
During the past year, the Company experienced mechanical difficulties in
exporting gas from the concession to the El Borma facility through its 100%
owned and operated 80 kilometre oil sales pipeline. Conversion of the existing
oil pipeline to a multi-phase (oil and gas) pipeline resulted in high pipeline
pressures and several minor leaks. These leaks have been quickly repaired with
no impact on production or environmental damage, but a decision has been made
to suspend further attempts to inject gas into this oil sales line until a
detailed inspection of the pipeline is completed. This work is currently
underway and once pipeline integrity is evaluated, and any necessary repairs
are made, gas will be introduced into the line again.
    The Company is proceeding with the complete looping of the line to create
more take-away capacity for gas from this region. Procurement of materials and
services is underway and the new line is expected to be in service in the
fourth quarter of 2008. Take away capacity for this new 100% owned and
operated gas line is estimated to be 400,000m3/d (14mmscf/d)
    Currently, the Company's net productive capacity for natural gas from the
Chouech Essaida concession is 65,000m3/d of gas or 380 boepd.

    Sabria Development Drilling Update:
    The Company is pleased to announce that the rig, CTF 06 has been
contracted for the upcoming Sabria multi-well program. The formal process for
approval and execution with the Company's 55% partner ETAP (Enterprise
Tunisienne d'Activities Petrolieres), the national oil company of Tunisia, is
ongoing. The rig is scheduled to commence drilling operations in July or
August 2008.

    3D Seismic
    The Company began acquiring a 3D seismic survey covering the entirety of
its two southernmost concessions (Chouech Essaida and Ech Chouech) in March
2008. The entire 400 square kilometre survey is expected to take up to
3 months to acquire, and an additional 3 to 4 months to process and interpret.
The seismic is being acquired to identify new development locations in the
Triassic and Devonian horizons, plus exploration targets in the high impact
Silurian play. Additional drilling locations arising from the interpretation
of the new 3D seismic data are expected to be defined in late 2008 or early
2009. The Company is currently evaluating a number of opportunities to
contract an additional deep drilling rig for this program.

    The Company has completed the acquisition of 42 kilometres of 2D seismic
data over the Torokkoppany mining plot and the Igal II exploration permit in
Q1 2008. One to two wells are planned for this summer depending on the results
of the interpretation of the new seismic. The first planned location
(Alsoleperd No.1) is designed as a 1,700 meter stratigraphic test of the
Pannonian Turbidite stratigraphic play and is currently expected to be drilled
in June 2008 .The second well (contingent on the seismic interpretation) would
be an exploration well drilled on the Torokkoppany mining plot. A successful
exploration well would be tied into the 100% owned Torokkoppany natural gas
processing facility prior to the next winter's heating season.


    Winstar Strachan 8-10-38-10W5 (50% working interest)
    The Strachan 8-10 well has been re-entered, deepened an additional
60 meters into the reservoir, and then acidized. The well has been
subsequently tied into the existing surface facilities and will be flow tested
once the significant amounts of workover fluids and acid load have been
recovered. The third party operated pipeline and compressor that this well is
tied into is currently unavailable due to an extensive pipeline repair
operation. The Company has been informed that the pipeline should be back in
service by mid-April 2008.

    Subject to equipment availability and partner approval the Company
anticipates that it will produce between 2,400 and 2,700 boepd during 2008.
The Company expects to release its three and twelve month financial and
operating results for the period ended December 31, 2007 on March 27, 2008.


    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.

    Forward-Looking Statements

    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, Canada and Hungary. Winstar's common
shares trade on the Toronto Stock Exchange under the symbol WIX.

For further information:

For further information: Mr. David Monachello, President, Phone (403)
513-4200, Email or Mr. Charles de Mestral, Chief
Executive Officer, Phone: Toll-free (Canada and USA) 1-800-875-1217, (Note:
Mr. de Mestral is based in Europe, in a time zone eight hours ahead of Calgary
time), Email:

Organization Profile

Winstar Resources Ltd.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890