CALGARY, April 2, 2012 /CNW/ - Legacy Oil + Gas Inc. ("Legacy" or the "Company")(TSX: LEG) is pleased to provide an operational update for its activities in the Williston Basin and an interim update of its recent Turner Valley drilling success.
In the first quarter of 2012, the Company drilled 49 (35.1 net) wells all targeting light oil, with a 100 percent success rate. This total included 13 (10.2 net) horizontal wells in its Spearfish play at Pierson and Bottineau County, North Dakota. The Company continues to be on track to meet its full year production guidance.
SPEARFISH PLAY
At Pierson, Manitoba, the Company's drilling, completion design and production practices have demonstrated superior results in the Spearfish compared to both the previous operator's drilling and the type curve used in the 2011 year-end independent engineering report. Production from Legacy drilled wells are:
| Initial Rate Period |
Bbls Oil per Day |
Number of Wells Producing |
| 30 Day Average |
96 |
16 |
| 60 Day Average |
86 |
12 |
| 90 Day Average |
95 |
10 |
Legacy has achieved these rates while constraining production to maximize ultimate recovery. All the above wells carry significant fluid levels, with some wells having fluid just below surface. The Company estimates that initial productive capability of these Pierson wells would be far in excess of the constrained rates shown above. Furthermore, five wells with the longest producing history (147 days on average) have averaged 101 Bbls of oil per day per well over this period. The Company believes these achievements will lead to superior long term performance, higher per well reserve bookings plus additional locations booked. A production graph depicting these results is included in the Company's latest corporate presentation available at www.legacyoilandgas.com.
Legacy has identified 210 net locations on its lands at Pierson, approximately 77 percent unbooked in the most recent independent reserves report. Current production in the area is greater than 2,000 Bbls per day and with the installation of a central oil battery and the tie-in of 29 wells thus far, operating costs are anticipated to improve significantly.