Brixton Energy Corp PMBJF

RE: RE: Potential

[dontaskitsbigger]

From News release on December 22 2011:

 

Brixton
Energy Corporation
BRX TSX.V
#328, 1500 14th Street SW Calgary, AB T3C 1C9
PHONE: [phone] FAX: [phone]
www.brixtonenergy.com
CALGARY, December 21, 2011 (TSXV: BRX) Brixton Energy Corp. ("Brixton") announces
the following corporate update.
Brixton was unable to reacquire surface rights to re-enter Brixton's 06-15-082-03W6 (“6-
15”) and 10-15-082-03W6 (“10-15”) wells due to a list of requirements from the surface owners
that the Company could not meet. Management believes that many of the requirements imposed
by the surface rights owners were unreasonable and unethical. In accordance to section 16 of the
Oil and Gas Conservation Act (OGGA) the company must have valid entitlement to right to
access the subject well sites. As Brixton was unable to reacquire the surface rights, the Company
has now been advised by the ERCB that 6-15 and 10-15 wells have been abandoned. Upon
completion of the abandonments the ERCB will invoice Brixton for the costs which it has
incurred, less the previously submitted liability deposit for the abandonment of these wells.
Brixton currently holds crown mineral rights on the north part of this section 15 land and has
previously announced that it plans to horizontally drill a Montney target which is contiguous to
the 6-15 and 10-15 wells. Brixton is still proceeding in this direction, and the Company has
received a list of compliance issues from the ERCB that have to be completed in order for
Brixton to obtain a drill license for this location. Management feels this list of requirements is
achievable and is committed to fulfilling these obligations.
Brixton also currently holds 100 % crown mineral rights from surface to basements on two
sections of land in the Panny area, AB and 25% working interest and operatorship in the 8-25-
095-05 W5M well that the Company will be producing to tanks and trucking to market this
winter. With regards to 8-25 well the Company will examine the possibility of a step out
horizontal well to improve production from the Keg river formation. With regard to the two
sections of land that Brixton holds that are contiguous to the 8-25 well management has received
a preliminary report that there several options to put this property into production. One
possibility is to re-enter an abandoned Keg river formation well on the property, that was
previously abandoned in the 1980s due to low oil prices and the well was uneconomical at the
time. Oil prices have dramatically increased over the years, making this a prime target to put into
production. Another option is to drill a step out horizontal well on this section, which will
greatly improve the economics of this property. In regards to the second section of land,
management is in the process of securing and reviewing seismic and wellbore data in the area to
pick an optimal horizontal drill location.