Post by
zenda on Apr 21, 2011 4:29pm
Well success
CALGARY, April 21
Toronto Stock Exchange: SCS
82,922,629 Common Shares
CALGARY, April 21 /CNW/ - Second Wave Petroleum Inc. ("Second Wave" or the "Company") is pleased to announce that it has
drilled and completed its first successful Judy Creek Beaverhill Lake horizontal oil well under the terms of its previously
announced Joint Venture and Farm-Out Agreement. The well was drilled from the surface location of 04-31-063-09W5 with the
final bottom hole located at 15-36-063-10W5 ("the 15-36 well"). The 15-36 well was drilled by Second Wave to a total depth
of 4,005 meters and will qualify for a 5% incentive royalty rate for 42 months or 90,000 boe of production, whichever comes
first.
The Company completed the 15-36 well using multi-stage acid fracture technology on April 2, 2011 and initiated flow back
from the well on April 3, 2011. During the first seven and fifteen days of testing the 15-36 well flowed at average gross
rates of 2,145 boe/d (86% light oil) and 1,825 boe/d (86% light oil), respectively. Prior to being shut in for an initial
pressure build-up the 15-36 well had cumulative production of 27,600 boe comprised of 23,700 bbl of 40 APIo light oil and
24 mmcf of liquids rich natural gas.
The 15-36 well represents the Company's first well drilled under its previously announced Joint Venture and Farm-Out
Agreement under which Second Wave's joint venture partner will have the ability to earn a 60% interest in the Company's
50,000 net acres of Beaverhill Lake mineral rights at Judy Creek by drilling a total of 13 horizontal earning wells. The
agreement requires the Company's joint venture partner to pay 85% of the total costs to drill and complete each of the
earning wells in exchange for a 60% working interest in each 3,840 acre earning land block. Second Wave will pay the
remaining 15% of the drilling and completions costs to retain a 40% working interest in the earning block. As per the terms
of the agreement Second Wave retains a 40% working interest in the 15-36 well after contributing 15% of the drilling and
completion costs.
Second Wave is proceeding with plans to drill an additional eight (3.2 net) Beaverhill Lake horizontal oil wells in 2011.
The first of these eight wells is scheduled to be spud as soon as ground and road conditions allow.