West Announces Drilling and Testing Update1 September 2006
West Energy Ltd. ("West" or "Company", TSX: "WTL") updates its current drilling and testing operations. Lodgepole Pool Extension West is pleased to report that it has completed the drilling of two step out locations in the Lodgepole pool (Nisku TT pool). The first step out well at 14-32-47-09W5 (WTL W.I. 100%) encountered a 16 meter hydrocarbon column as previously reported in early August. The well has recently been completed and flow tested for 4 hours at a rate of 1,705 Boe/d of hydrocarbons (1,490 Bbls of oil and 1.30 MMcf of raw natural gas with 16.6% H2S at 545 psig flowing pressure). The second step out location at 16-32-47-09W5 (WTL W.I. 100%) reached total depth on August 29 and is being cased as a Nisku oil well. Based on log and wellsite geological data, the well encountered a 20 meter hydrocarbon column (17 meters of net pay) with no apparent water leg. The 16-32 well will be completed and put on test in the next few weeks. Facility construction has started and both wells are expected to be operational in early October. Upon completion of drilling operations at the Lodgepole 16-32 location the drilling rig is expected to move to the Violet Grove 09-14-48-08W5 location (WTL W.I. 100%). Violet Grove The Company's well located at Violet Grove 05-35-048-08W5 (WTL W.I. 60%) has been completed and tied-in to the Paddy Creek battery complex. During an extended production test in late August (14,000 Bbls of total oil recovered), the well produced 2,120 Boe/d of hydrocarbons (1,725 Bbls of oil and 2.44 MMcf of raw natural gas with 31.0% H2S at 565 psig flowing pressure). The well has been suspended pending approval of the enhanced recovery scheme for the area. The Violet Grove 07-16-48-08W5 well (WTL W.I. 50%), which was drilled late in the first quarter of 2006, was recently completed and tested. During a 17 hour flow test the well produced 690 Boe/d of hydrocarbons (630 Bbls of oil and 0.37 MMcf of raw natural gas with 0.0% H2S, 4% water cut at 75 psig flowing pressure). The production from this well was unusual for the Nisku zone in the area as it was not sour and had a low gas oil ratio. The Company is looking at tieing the well into offsetting sweet oil infrastructure. Three offset locations to the 7-16 well are currently in the licensing process. Reader's Advisory: Certain information regarding West Energy Ltd. in this news release including management's assessment of the operations data, production estimates and future plans and operations and their timing may constitute forwarding-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information and that could cause actual results to differ materially from those anticipated in the forward-looking statements are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Corporation's website (www.westenergy.ca). Furthermore, the forward-looking statements contained in this news release are made as the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. BOE's may be misleading, particularly if used in isolation. In accordance with NI-51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 Bbl has been used which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead. %SEDAR: 00018134E For further information: Ken McCagherty, President and Chief Executive Officer, Email: mccagherty@westenergy.ca, Direct Phone: (403) 716-3458 OR Rick Jaggard, Vice-President Finance and Chief Financial Officer, Email: rjaggard@westenergy.ca, Direct Phone: (403) 716-3457
Source: newswire
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