CALGARY, ALBERTA--(Marketwired - Mar 5, 2014) - PRD Energy Inc. ("PRD" or the "Company") (TSX VENTURE:PRD) announced initial flow rates from the Boerger 7A horizontal well.
The Boerger 7A well began producing at 5:30 a.m. (Calgary time) on February 24, 2014 to clean the wellbore and commission the early production facilities. From 5:30 a.m. on February 24, 2014 to 10:00 p.m. (Calgary time) on March 3, 2014, the well produced a field estimated total of 2,258 barrels of oil (or 294 barrels of oil per day, based on 184.5 hours of actual production time). In the 24 hour period ended 10:00 p.m. (Calgary time) on March 3, 2014, the well produced 285 barrels of oil with a 3% water cut (which is subject to ongoing analysis). To date, 84% of the 250 barrels of load water has been recovered. The average gas-oil-ratio is estimated to be 245 standard cubic feet of gas per barrel of oil.
Since the commencement of production, the operator has controlled and restricted the flow of the well until the production facilities are commissioned and operating in a safe and reliable manner whereafter the operator will be able to determine the unrestricted production capability of the well. The operator is continuing to commission the production facilities and it is uncertain when production testing will commence. These initial results are not necessarily indicative of long-term performance or ultimate recovery. The capability of this well should be assessed on more mature initial production data which will be released in due course.
The well was drilled to a horizontal length of 485 meters of which approximately 200 meters was cased with the remainder of the horizontal section being open hole. The well penetrated the targeted Jurassic Obermalm zone which is a highly fractured dolomitic sandstone interbedded with shales and anhydrites. The Boerger 7A well was completed without the use of stimulation techniques. Production is being trucked off site, treated and then sold to a local refinery.
This is the first well PRD has drilled in Germany. The experience acquired by the Company in this development, along with interpretation of 3D seismic over the field and adjacent areas, will assist in optimizing the development of the Boerger field. We believe there are a number of other potential locations for Obermalm production, in addition to several other potentially productive zones which may provide additional upside.
The Boerger oil pool will be the focus of the Company's development activity in 2014 and early 2015. In addition, the Company is continuing to evaluate and rank its 2,413,300 acres of other petroleum lands in Germany and is moving forward with exploration and development activities on certain of its most prospective lands.
About PRD Energy
PRD Energy Inc. is a Calgary based oil and gas company engaged in the exploration, development and acquisition of, natural gas and crude oil, in Germany. All activities of the Company, in Germany, are undertaken by its wholly-owned subsidiary, PRD Energy GmbH. PRD's common shares are listed on the TSX Venture Exchange with the symbol "PRD".
Forward looking information
This news release contains forward-looking information relating to the timing of commencement of production testing, the ability to use the experience gained to optimize the development of the Boerger field, the success of drilling on other locations and targeting other zones in the Boerger field, the focus of the Company's operations over the course of 2014 and 2015, the oil to gas ratio of the well once on production, the ability to test production rates and other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.
Forward-looking information is based on certain factors and assumptions regarding, among other things, the future performance of the Boerger 7A well, the success of future exploration and development activities in the Boerger field, the impact of increasing competition; the general stability of the economic and political environments in which the Company operates or owns interests; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability to operate in a safe, efficient and effective manner; the ability of the Company to obtain financing to fund its operations on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with the failure to identify economic operations in the Boerger pool following the interpretation of seismic data, declining production from the Boerger 7A well, instability of the economic and political environments in which the Company operates or owns interests, ability to manage water production and disposal, oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, the inability to settle the definitive terms of the farmout arrangements, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals, inability to obtain approvals from the Company's partners in operations, and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.
Certain information contained herein may be considered to be "anticipated results" as defined in National Instrument 51-101. In particular, this news release discloses details regarding the flow rates from the Boerger 7A well from which it expects to produce light oil. Risks associated with recovery include decreases in reservoir pressure, increases in water production as well as operational and mechanical failure.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.
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.