GLJ Petroleum Consultants Ltd. of Calgary has completed an independent oil and gas reserves assessment of the E-08 well on PetroWorth Resources Inc.'s Rosevale block property in New Brunswick.
GLJ's reserves assessment was initiated in August 2010 and completed by November 2010, resulting in a report prepared in accordance with National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The report concludes that the E-08 well has possible marketable reserves of:
-- 2.16 billion cubic feet of natural gas and 2,900 barrels of natural gas liquids for a total of 363,000 barrels of oil equivalent (BOE) -- Potential undiscounted net revenue after royalty of $17.2 million and undiscounted net revenue after operating and capital expenses of $3.4 million.
The E-08 well was drilled in November/December 2007 and underwent four fracture stimulations in the Hiram Brook sands in June 2008. At the end of a 130-hour co-mingled production test, the well flowed 0.9 million cubic feet per day (25,600 cubic metres/day) of natural gas and 14.4 barrels per day (2.3 cubic metres/day) of condensate liquids or 16 barrels of liquids per million cubic feet of natural gas production.
The GLJ report also states that PetroWorth's "A-08 well is just to the east of the E-08 well and also has prospective sands present in the Hiram Brook that are yet to be evaluated."
In addition, the GLJ report provides the following description of the Frederick Brook shale on PetroWorth's Rosevale Block property:
The Frederick Brook Member of the Albert Formation underlies the productive Hiram Brook member. The Frederick Brook section is very thick at Rosevale and extends over the field...The organic rich shales of the Frederick Brook have been identified as the main source rock for the gas produced from the overlying Hiram Brook Member sands. This unit is also being evaluated by PetroWorth for its potential as a Shale Gas resource.
PetroWorth is currently exploring all avenues for getting the E-08 gas and liquids to market in 2011, including applying for a New Brunswick producer franchise in order to maximize the benefit to shareholders.
The entire GLJ reserves assessment report can be viewed at www.petroworth.com.
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