CALGARY, ALBERTA--(Marketwired - Oct. 15, 2013) -
(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Petroforte International Ltd. ("Petroforte" or the "Corporation") (TSX VENTURE:PFI) reports that further to the Corporation's news release of October 1, 2013 wherein it reported that it had acquired the debt of a private company from a financial institution and that a Receiver had been appointed by the courts under a security agreement, the private company in question was Expand Energy Corporation ("Expand") and on Friday, October 11, 2013, a court order was granted in Expand's receivership approving the sale of its assets to Petroforte subject to approval by the Alberta Energy Regulator and its Saskatchewan equivalent. Net cost to Petroforte is approximately $1.10 million.
The assets acquired include productive oil wells in the Lloydminster area of Saskatchewan and in the Flood area of west central Alberta. At Lloydminster, Petroforte has purchased a 100% working interest in two productive heavy oil wells, a 40% working interest (after payout) in another three productive heavy oil wells and a 3.5% royalty interest in two producing heavy oil wells. The wells are currently shut-in and will be re-activated with a total expected net production of 22 Bbls/day.
At Flood, Petroforte has purchased a 100% working interest in a substantial land position, namely 23,840 acres (37.25 Sections). The acreage has three productive Montney horizontal oilwells and 28.5km2 of recently shot, processed and interpreted 3D seismic. Production facilities are in place and oil has been produced from the Montney Formation but the wells are currently shut-in awaiting the drilling and commissioning of a water disposal well. Potential production from the three wells is estimated at 85 BOPD net of 29.5 degree API oil. Petroforte also obtained a 100% working interest in a new multi-well oil battery with all associated equipment.
With respect to the Corporation's interests at Brazeau River, Petroforte has started work in the field with a recompletion at the 100% working interest 9-5-48-14W5 well. The 9-5 well was a shut-in Rock Creek gaswell. Petroforte initially commingled the Rock Creek and Basal Quartz zones and performed a short 12 hour flow test. After the recovery of all kill fluid, the commingled zones yielded a production rate of 825 MCF/D and 65 Bbls/day of 48 degree API condensate. These two zones have been suspended but can be reactivated in the future. The well was then completed in the Cardium Formation and stimulated with a 30 tonne gelled hydrocarbon frac. After full recovery of load oil, the average flowrates over a two day test were 298 Bbls/day of 44 degree API oil and 794 MCF/D gas. At the end of the two day test, the rates had stabilized at 220 Bbls/day of oil and 805 MCF/D of gas. The well is currently being configured for production and will come on stream once surface facilities are completed.
Allan King, President and CEO, commented, "The Expand Energy asset acquisition and successful commencement of field operations in Brazeau are exciting steps toward completing our transition into a Western Canadian focused junior producer. The continuing buyer's market in Canada presents many additional opportunities to acquire assets at very attractive metrics. Petroforte will continue to actively pursue projects that complement our profitable growth strategy."
Petroforte has scheduled an annual general meeting to be held in Calgary on Tuesday December 10, 2013 and the material will be mailed to its shareholders on or about November 8, 2013.
Petroforte is a Canadian oil and gas company focused in Western Canada.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.