New Sage Energy completes Peltier No. 2 wellTicker Symbol: C:NSG
New Sage Energy completes Peltier No. 2 well
New Sage Energy Corp (C:NSG)
Shares Issued 31,292,478
Last Close7/30/2010
.04
Tuesday September 21 2010 - News Release
Mr. John Carlesso reports
NEW SAGE ENERGY ANNOUNCES SUCCESSFUL COMPLETION OF PELTIER #2WELL
New Sage Energy Corp. has completed the Valentine field,Peltier No. 2 well. This is the third development project between New Sage andGulf South Operators of New Orleans, Louisiana. New Sage has a 10% workinginterest in the well and the project.
Peltier #2 was drilled within the well known Valentine Fieldand targeted approximately 430,000 barrels of oil from as many as six zones. Thewell encountered six potentially productive zones beginning with the R-sand,with no associated oil or water. It was noted during the prospect review thatindividual sands, had significant oil production (between 100,000 and 400,000bbls oil) from several wells in the Valentine field.
The well is expected to be tied into a local pipeline and putinto production. The gas cap within the currently completed zone will beproduced and production from the well is anticipated to change from gas to oilin a relatively short time following hook-up of the well.
"We are very encouraged by the initial results to date on thePeltier #2 well, which continues our track record of success with GSO" said JohnCarlesso President and CEO. "Additional results are expected shortly followingthe testing of the sands that had oil showing during the initial drillingphase".
Peltier #2 well was completed at a depth of 8,500', productioncasing was perforated between 8486' and 8497' across the R-sand that had aminimum of five feet of net pay characterized by an average of 25% effectiveporosity with gas and condensate detection and low water saturations (20 to 24%)on side wall core analyses. Successive zones include the R-sand upper (4'), Oand O-2 sands (10'), N-sand (8') and M-sand (5') that have moderate to highporosities indicated on logs with condensate and oil saturations detected onside wall core analyses. These sands are expected to produce condensateinitially, followed by oil once they are completed and put into production.
Reservoirs within Louisiana are very young and porous withmoderate to high permeability, which translates into reservoirs that producegas, condensate and oil very quickly. Multiple zone completions are required foreach well, which can provide the benefit of higher reserves per well and finalnet revenues. An operator in the Gulf Coast and its working interest owners canachieve pay-out of the well or project with a high rate of return within arelatively short time compared to other conventional oil and gas plays withinolder sedimentary basins because these reservoirs are not as prolific.
New Sage continues to look at additional opportunities in theUS Gulf States and across North America.
? 2010 Canjex Publishing Ltd.