Calgary, Alberta--(Newsfile Corp. - March 17, 2015) - WELLSTAR ENERGY CORP. (TSXV: WSE) ("WellStar", or the "Company") is pleased to announce results and development plans from its successful re-entry program recently completed in the Leduc area of west-central Alberta.
On January 16, 2015, the Company re-entered its operated 35% working interest Mannville oil well. The purpose of the successful re-entry program was to test a potentially productive upper bypass zone in the Glauconitic Manville formation ("Test Formation") and if proven productive; comingle this Test Formation with existing Manville production and develop a comprehensive horizontal drilling program for the newly tested zone.
The production testing has indicated virgin reservoir pressure with recovery of light oil and solution gas. The company is in the process of developing a comprehensive horizontal drilling plan.
Production equipment has been run in order to establish a steady short term production test. Test production rates from this vertical wellbore demonstrate the Test Formation is an excellent candidate for horizontal drilling and were approximately 6 bbls/day (2.1 bbls/day net Company share) of emulsion and approx. 1.5 E3M3/Day (1.8 bbls/day of oil equivalent using 10:1 conversion factor) of solution gas.
On March 13, 2014, a service rig was mobilized to comingle the test zone with the existing Manville zone where the Company expects a combined production rate of approximately 15 boepd (5.25 boepd net).
The Company may reactivate its currently shut in Lower Manville natural gas zone ("Gas Zone") in the same wellbore when commodity prices improve.
The Gas Zone was perforated and tested in 2008 at a rate of approximately 750 mcf/d (262.5 mcf/d net), 75 boepd (26.2 boepd net) of gas using 10:1 gas to oil ration.
Due to the success and characteristics of the test formation, WellStar's technical team is designing a multi-well horizontal development program that would allow the Company to possibly drill up to 4 gross wells per section, extending over several sections with working interests ranging from 35%-70%. Leased mineral rights directly offsetting the producing well are prospective for the same zone completed and/or producing in the Company's well.
WellStar currently holds approximately 5,147 net acres of mineral rights (operated) in the Leduc area of west-central Alberta. The Company's Mannville production is pipeline connected to a regional gas gathering system for processing. Produced fluids are trucked to a nearby 3rd party custom facility for processing and water disposal. This area exhibits multi-zone oil & gas production from the Leduc, Nisku, Wabamun, Mannville and Viking formations.
WellStar operates a second well in the area which has been completed and tested in multiple formations and is suspended while awaiting pipeline construction.
WellStar's management also announces it has moved its corporate headquarters to Calgary, Alberta. The Company's new address is 540, 734 7th Avenue SW, Calgary, AB, Canada T2P 3P8.
For further information please contact Andrew H Rees at (403) 919-7900.
ON BEHALF OF THE BOARD
(signed) "Andrew H. Rees"
Andrew H. Rees
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company. Readers are cautioned not to place undue reliance on forward looking statements.
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