NEWS RELEASEParamax Resources Ltd. Provide Idaho Operations Update
11/24/2010 9:28:56 AM - Market Wire
CALGARY, ALBERTA, Nov 24, 2010 (Marketwire via COMTEX News Network) --
Paramax Resources Ltd. (TSX VENTURE:PXM) ("Paramax or the Corporation") is pleased to provide an operations update on their Western Idaho Basin Project.
Paramax and its 50% working interest partner Bridge Resources Corp. ("Bridge") have drilled and tested five Hamilton gas wells with 50 potential infill locations identified. The Corporations are currently planning to undertake small stimulation treatments on four of the wells to boost deliverability with the timing subject to final regulatory approval.
Paramax and Bridge have also drilled two step-out wells from the ML Investments 1-10 Willow Field discovery. The DJS 1-15 well encountered a 230 feet gross pay section that was gas condensate bearing to the base of the interval with no water present. The well was cased and perforated at four separate intervals and produced a stable 1.25 mmcfd with condensate on a 1/8" choke. From the results of prolonged flow-tests, the well has been deemed to be an excellent stimulation candidate with a minimum 1,280 acres productive area,
The second step-out well, the DJS 1-14, was structurally high but did not encounter the anticipated pay sand due to faulting or unconformity truncation. A shallow sand tested gas and water and provides future follow-up potential. The planned DJS 1-13 well will not be drilled at this time pending integration of the DJS 1-14 results into the seismic interpretation to relocate the third planned step-out.
Additional locations directly offsetting the ML 1-10 well will next be drilled when approvals have been received. Negotiations have been concluded to retain the drilling rig on a stand-by basis.
Commercial tie-in operations continue as planned, with first production revenues anticipated in early 2011.
Readers' Advisory
Statements in this press release may contain forward-looking information including expectations of commerciality of any discovery, future operations, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Corporation. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
SOURCE: Paramax Resources Ltd.
Paramax Resources Ltd. Joseph E. Casabona CEO (303) 619-8870 jcasabona@paramaxresources.com Paramax Resources Ltd. Mike Smith President (403) 605-0866 msmith@paramaxresources.com