Exall Energy Corporation announces third Marten Mountain Gilwood 3D seismic well test and completion of the north pipeline extension
Friday, Mar 16, 2012
CALGARY, March 15, 2012 /CNW Telbec/ - Exall Energy Corporation ("Exall" or the "Company") (TSX: EE) is pleased to announce the test production flow rates on the third successful 3D seismic channel anomaly in its Marten Mountain, Mitsue operating area. Exall's public filings can all be found at www.exall.com or www.sedar.com.
3D Seismic Gilwood "A" Well Test
The third Gilwood A Sand well drilled on an interpreted channel-type anomaly identified on the 2011 3D seismic program has been completed and tested. The 14-12 well swab-tested an average of 604 BOEPD over a 5 day, 12 hour per day production test period (net 398 BOEPD) of 40° API sweet oil with a small amount of solution gas. The testing was terminated to allow Exall to equip the well for production and tie the well into the newly completed pipeline. It is expected to be on production prior to the end of March at a New Oil Well Production Period allowable rate of approximately 314 BOPD (208 BOPD net).
To date during the first quarter of 2012, Exall has drilled 3.0 gross wells
(2.13 net wells), and completed the drilling of 2.0 gross (1.32 net wells) wells spud in December, 2011. Of the five wells rig released during the first quarter of 2012, two have been completed and are producing and three are in various stages of completion.
Two wells (1.45 net) have been spud and are currently drilling ahead. One well will be a water source well for the amended South Water Flood; the other well is the fourth well on the seismically defined channel.
3D Seismic Activities
During the fourth quarter of 2011, Exall permitted a 244 square kilometer (86 section) 3D Seismic program to be shot during winter months only. The program was officially kicked off mid-December 2011. It is anticipated that 51 of the 86 sections of the 3D Seismic Program will be shot before spring break-up 2012, with the remaining 35 sections to be completed in 2013. Of the 51 sections 100% have been cleared and drilled with 61% having been shot. Exall anticipates that that acquisition phase of the 2012 3D seismic program will be completed by March 26, 2012.
The full 2012 - 2013 3D Seismic Program is approximately 12 times the size of the 3D Seismic Program shot in the winter of 2011. Processing and interpretation of the 2012 3D Seismic Program should be complete by June 2012.
On March 12, 2012 Exall completed construction of a pipeline extension to the 3-25 pad site from which the 10-24 and 2-25 3D seismic test wells were drilled. With the completion of the pipeline Exall now has the northern extension of the Marten Mountain A Sand trend connected to the central battery facilities. Future drilling on the northern extension will require only minor tie-in costs, including the 14-12 well, currently being equipped for production, and the drilling 6-25 well. The 14-12 well is expected to be tied in and on production before the end of March.
SOURCE EXALL ENERGY CORPORATION
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