Insignia plans 2010 drilling at Pouce Coupe, CarolInsignia plans 2010 drilling at Pouce Coupe, Caroline
2010-01-19 17:28 ET - News Release
Mr. Jeff Newcommon reports
INSIGNIA ENERGY LTD. ANNOUNCES RESULTS FROM ITS FOURTH QUARTER 2009 DRILLING PROGRAM
Insignia Energy Ltd. has released an operational update with respect to its fourth-quarter 2009 drilling program.
At Pouce Coupe, in Alberta, the company has drilled, cased and completed a 100-per-cent-owned horizontal well at 13-29-77-11 W6M (the "13-29 well") to a total depth of 3,450 metres, which includes a 1,285-metre horizontal section in the Lower Doig formation. Sample and background gas analysis indicated high-quality reservoir for the entire length of the horizontal. The well was successfully completed through a cemented liner with nine separate multistage-fracture completions. Following completion, the well produced up 4-1/2-inch casing for a clean-up and test period of 140 hours. The final flow rate was approximately four million cubic feet per day at a flowing wellhead pressure of approximately 600 pounds per square inch.
The 13-29 well is currently shut in pending the recovery of downhole-pressure recorders and, once retrieved, it is anticipated that the well will be tied in and placed on production prior to the end of February, 2010. The company has approximately 29 net sections of land in the immediate area. This land is prospective for both the Montney and Doig formations and Insignia has identified in excess of 80 net drilling locations.
At Caroline, the company has drilled, cased, completed and tied in a 100-per-cent-owned vertical well at 16-13-34-7 W5M (the "16-13 well") to a total depth of 3,100 meters. The 16-13 well was successfully completed in six separate intervals including the Glauconitic, Ostracod and Ellerslie formations. The well has been on production since early January, 2010, at an average rate of approximately two million cubic feet per day of liquids-rich gas, plus 25 barrels per day of free condensate, for a total production rate of approximately 350 barrels of oil equivalent per day.
The Caroline area is located in the heart of the Alberta deep basin and has multizone stacked horizons including the shallow Cardium and Viking formations as well as the deeper formations recently completed by Insignia in the 13-29 well. This is an emerging area for Insignia and, at present, the company has 15 net sections of prospective lands and has identified in excess of 15 net drilling locations on these lands.
At Grand Prairie, in Alberta, the company has drilled, cased and completed a 100-per-cent vertical well at 16-1-72-7 W6M (the "16-1 well") to a total depth of 1,120 metres. The 16-1 well was targeting the Dunvegan formation and this formation has been completed and is pending further analysis.
As previously disclosed, the company is advancing its drilling and capital program for the first half of 2010, which presently includes follow-up drilling at each of its Pouce Coupe and Caroline areas with an additional 100-per-cent-owned horizontal well planned at Pouce Coupe and up to two (1.5 net) vertical wells at Caroline.
As well, in the Pembina area, Insignia holds 4.5 net sections in Twp 48 Rge 5 W5M. These lands are highly prospective for the Cardium oil development. The company has identified approximately 24 net drilling locations on these lands and is currently moving forward to drill the first of these wells in mid-2010.
The company exited 2009 at a rate of 2,050 barrels of oil equivalent per day and is currently producing approximately 2,350 barrels of oil equivalent per day.
We seek Safe Harbor.