PetroGlobe Completes Successful Pembina Cardium Oil Well
CALGARY, ALBERTA, Apr 9, 2010 (Marketwire via COMTEX News Network) --
PetroGlobe Inc. ("PetroGlobe" or the "Company") (TSX VENTURE:PGB) is pleased to announce the initial results of the Company's second horizontal Cardium oil well.
Cardium horizontal wells
PetroGlobe's second Cardium horizontal well drilled in late February 2010 is now producing approximately 215 (73 net) barrels of oil per day. As previously announced, the well was horizontally drilled with a 1,114 metre open hole horizontal leg. The well was completed in March 2010 with a12-stage fracture stimulation. During the first 22 hours of flowback after completion, the well flowed 2,105 barrels oil with burnable natural gas production, at which point the well was shut in, all ports were drilled out and production equipment was set in place. PetroGlobe's working interest in this well is 33.75%.
Shortly after being placed on production, PetroGlobe's first Cardium oil well production stabilized at approximately 30 (18 net) barrels per day. The Company is currently evaluating potential actions to restore it to initial production rates. PetroGlobe's working interest in this well is 60%.
Pembina Cardium locations double
PetroGlobe is also pleased to announce that over the last several months it has acquired six gross (five net) sections of multi-zone lands in Pembina. The Company has identified a potential of six net locations on the acquired acreage, doubling the Company's existing Cardium locations in Pembina to 12 net horizontal locations. The lands are prospective for additional oil exploration targets, which add to the Company's inventory of oil drilling locations.
The Company maintains a 100% working interest in 2.5 sections of prospective Cardium rights in West Central Alberta that could add an additional 10 net Cardium horizontal drilling locations. This would increase the Company's total number of Cardium horizontal drilling locations to 22.
PetroGlobe Closes Private Placement Financing
PetroGlobe is also pleased to report that its previously announced private placement financing closed as expected on March 24, 2010, increasing the total gross proceeds raised through common share and flow-through common share financings in March 2010 to $1,882,140. This latest financing resulted in the issuance of 835,000 flow-through common shares at
.36 per share.