Porcupine News ReleaseOct. 27, 2010, 8:30 a.m. EDT
Atikwa Hits New Field Wildcat Well
CALGARY, ALBERTA, Oct 27, 2010 (Marketwire via COMTEX) -- Atikwa Resources Inc is excited to announce the discovery and successful completion and flow testing of a New Field Wildcat, liquids rich natural gas reservoir in the Porcupine Hills.
The original reservoir pressure has been determined to be just over 4,900 psi. Based on the initial pressure, and the average net-pay and porosity in the well over one section of areal extent, Company engineers have estimated a "Discovered Resource" of 6 bcf of natural gas, associated with the well. The Company holds an 87% working interest in the well and seven contiguous sections of land in the area.
Discovered Resources are defined in the COGE Handbook: "Discovered resources are those quantities of oil and gas estimated on a given date to be remaining in, plus those quantities already produced from, known accumulations. Discovered resources are divided into economic and uneconomic categories, with the estimated future recoverable portion classified as reserves and contingent resources, respectively." There is no certainty that it will be commercially viable to produce any portion of the Discovered Resource.
Operationally, the Company successfully re-entered, perforated, and fracture stimulated the zone of interest. The fracture fluids were recovered after a clean-up period, and the well flow-tested natural gas with associated liquids from the completed zone. The Company will provide flow-rate information once the operational and reservoir parameters of the well are quantified and the most effective program to produce the well is determined. Additional laboratory work will be performed to determine the amount of liquids that are associated with the natural gas. Longer term, flow-lining options are also being reviewed.
The current plans are to shut the well in for a period of time to perform a pressure build-up test, which will help to confirm reservoir properties, and determine pool size. CEO Sean Kehoe stated: "Although we are still in the early stages of testing, our preliminary evaluations would suggest that we have natural gas with liquids in a reservoir that has good pressure and appears to have some significant areal extent geologically. The natural gas liquids are attractive because they commonly sell in relation to crude oil prices. In some cases liquids rich gas can be even more attractive economically than certain oil plays." The well will qualify for the "Alberta New Well Royalty Rate", which provides a maximum 5% Crown royalty rate during the first full year of production.
Porcupine Hills represents the third play tested in a series of four large Original Oil in Place and Original Gas in Place resource plays that the Company is in the process of developing. The other three programs include a Bakken light oil play in Saskatchewan, the initial well is producing strongly with a follow-up development program now being planned, a Spearfish light oil development play in Manitoba with 20 net horizontal drilling locations and a liquids rich natural gas play on eight sections of land in the lower Mannville formation at Windfall, Alberta.
This news release contains forward-looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward-looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Statements regarding reserves are also forward-looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future.
Although the Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE: Atikwa Resources Inc.
Atikwa Resources Inc.
Sean Kehoe
President and CEO
(403) 233-6073