Acadian Energy Plans 2012 New Albany Shale Oil DriAcadian Energy Inc.
TSX VENTURE : ACX
March 19, 2012 15:10 ET
Acadian Energy Plans 2012 New Albany Shale Oil Drilling Program
TORONTO, ONTARIO--(Marketwire - March 19, 2012) -Acadian Energy Inc. (TSX VENTURE:ACX) -- (the "Corporation") is planning a 2012 New Albany Shale Oil drilling program. Acadian Energy has worked diligently to quantify the shale oil potential of our leases in the Maria Creek Project. Working with Fekete Associates of Calgary to complete a Greenfield Shale Oil Simulation, multiple well scenarios were modeled. Sensitivity analyses were performed to determine their impact on the estimated ultimate oil recovery (EUR); porosity, water saturation, vertical and horizontal permeability and reservoir pressure. Geochemical data from existing core log data suggests that 6 horizontal multi-frac stimulated wells could recover up to 1,000 Mbbl and a minor amount of natural gas.
Maria Creek Project, Sullivan County, Indiana
Acadian plans to drill six cores in the Maria Creek Project area of Sullivan County, Indiana, and test all potential zones as part of the oil exploration confirmation. Acadian's Maria Creek Project has 1,238 net acres held by gas production with possible oil reserves of 1 million bbls of oil.
It is estimated that net well costs will range between $2.5 million and $4 million per well with cost variability dependent on the intensity of the frac. Anticipated returns have been projected using Fekete Associates Greenfield Simulation and current oil prices to arrive at a projected I.R.R. of 300 % with payout in 0.59 years or an I.R.R. of 78 % with payout in 1.26 years respectively. Acadian plans to have a drilling participant package early summer 2012.
Additional information is also obtainable on the Corporation's web site www.acadianenergy.com