ARGOSY UPDATE
February 22, 2012 17:42 ET
Argosy Energy Inc Provides Operational Update
CALGARY, ALBERTA--(Marketwire - Feb. 22, 2012) - ARGOSY ENERGY INC. ("Argosy") (TSX:GSY) is pleased to provide the following operational update with respect to its operations to date in the emerging Exshaw/Bakken/Big Valley play in Southern Alberta.
Argosy's Southern Alberta Bakken prospect continues to dominate Argosy's operational activities. Several operators have announced successful efforts on this prospect and activity has intensified in recent months with increased drilling. The Company recently drilled a further horizontal well to add to its present Bakken holdings. The well is located approximately 6 miles northwest and on trend with the Indra Oil & Gas Ltd. well that has produced 247,000 barrels of oil to date. The Company has now drilled one vertical well and two horizontal wells (all 100% WI) and has continued to add land and 3D seismic coverage on its extensive land base of 43 sections in this area.
The recently drilled well had an 11 stage water based fracture completion performed along its 1150m horizontal section. The horizontal length encountered a thickened Big Valley dolomite section with porosity up to 18% and was also found to cross numerous fault blocks. The well has been on a preliminary flowback period for four days. The last 24 hours saw an oil rate of 585 barrels per day of 36 degree API oil. In addition to the oil rate, 390 barrels of completion load fluid was also recovered during that time period. To date, 45% of the 24,000 barrels of total load completion fluid has been recovered. The well is presently shut-in waiting on drill out operations on its multi-stage tools. Further flow and buildup will be done to continue to evaluate this well once it has been cleaned out. Argosy has 5.5 contiguous sections of land next to this discovery.
Argosy's initial Big Valley horizontal well is presently shut-in waiting on a pump workover to improve gas handling abilities. Prior to being shut-in, the well was producing 80 barrels of oil per day and 210 thousand cubic feet of gas per day. The well also produces 50 barrels per day of completion fluid. It is anticipated that the oil rate will improve once an upgraded bottom hole pump assembly is run. Cumulative production for this well is at 12,500 barrels over four months of production. Argosy continues to be optimistic about the results seen on their recent well and is evaluating future development locations on its land.
Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada.