Good News :)
EXALL ENERGY CORPORATION ANNOUNCES ERCB APPROVAL OF SOUTH MARTEN MOUNTAIN WATERFLOOD AND GPP
CALGARY, July 19, 2011: Exall Energy Corporation ("Exall" or the "Company") (TSX:EE) is pleased to provide an update on its Marten Mountain operations. Exall's public filings can all be found at www.exall.com or www.sedar.com.
HIGHLIGHTS:
? The ERCB has approved the Marten Mountain South Waterflood Project (located in Township 74 Range 5-6 in which Exall holds a 71.925% working interest)
? Good Production Practice has also been granted to the wells in the project
? Three producing oilwells, one injection well and one water source well are included in the South Marten Mountain Waterflood Project Area
? Source and injection well recompletions are under way
? A gas compressor and dehydrator are on order to facilitate handling of increased solution gas volumes, with estimated completion late August, 2011
? Drilling and completion operations have resumed in the wake of the May 15, 2011 Slave Lake fire with two drilling rigs and two service rigs operating for Exall
? Exall has drilled two horizontal wells, spud a third well and currently has two wells undergoing completion
? First horizontal well is testing oil at approximately 400 boepd (290 net to Exall)
Exall is pleased to announce that the ERCB has approved the Marten Mountain South Waterflood Project located in Township 74 Ranges 5-6W5. Exall holds a 71.925% working interest in the project. Good Production Practice has also been granted to the wells in the project subject to the initiation of water injection and conservation of produced solution gas. The Waterflood Project Area encompasses 256 hectares (640 acres) and includes three producing oilwells, one injection well and one saline water source well. Source and injection well recompletions are under way. A second solution gas compressor and a larger dehydrator are on order to facilitate handling of increased solution gas volumes under GPP, with estimated completion in late August, 2011.
Drilling and completion operations are under way after being interrupted by the recent Slave Lake fire. In order to resume drilling and completion operations Exall has established a camp and has secured additional accommodations for drilling and completion personnel. Exall recommenced drilling and completion operations in early June and to date has drilled two horizontal wells, spud a third well and currently has two service rigs working on completions. The first horizontal is currently undergoing swab testing and is producing clean oil at the rate of 400 boepd (290 boepd net to Exall). The well is also producing 2% invert and water and will be cleaned up prior to placing on pump through the Exall battery facilities. It is expected that the well will be equipped and tied in prior to the end of July.
Heavy rain through June and July has caused flooding in the Slave Lake area which has also led to delays in operations on Exall’s properties.