CALGARY, ALBERTA–(Marketwired – Nov. 20, 2013) –
Canadian International Oil Corp. (“CIOC” or the “Company”) is pleased to provide an update on the Company’s recent horizontal Montney well results in the Gold Creek area of West Central Alberta.
After eight months on production, the Company’s first Gold Creek well (12-36-67-4) has produced 270 Mboe, consisting of 113 Mbbls of oil and 945 MMcf of natural gas through the end of October. Encouraged by robust economics, the Company has followed up the 12-36 well with two 100% working interest wells at Gold Creek.
CIOC’s second Gold Creek well (15-1-68-4) is currently being flow-tested. The well had a peak 24-hour average rate of 840 Boe/d consisting of 275 bbl/d of 42 degree API crude oil and 3.4 MMcf/d of natural gas at a flowing pressure of 8.2 MPa (1,190 psi) on a restricted choke.
CIOC’s third Gold Creek well (16-25-67-4) is currently being flow-tested. The well had a peak 24-hour average rate of 2,197 Boe/d consisting of 1,069 bbl/d of 38 degree API crude oil and 6.8 MMcf/d of natural gas at a flowing pressure of 8.9 MPa (1,291 psi) on a restricted choke. The well is still in clean-up phase, with 63% of the stimulation fluid (water based) recovered to date. Drilling and completion costs are demonstrating significant improvement, with current well drilling and completion cost of less than $7 million. CIOC expects further savings will be realized in the future through pad drilling and additional efficiencies.
CIOC holds a 100% working interest position in approximately 250,000 acres of land in the liquids fairway of the prolific Deep Basin Montney formation in Alberta. CIOC has established three core areas at Gold Creek, Karr and Simonette and is in the process of delineating the Company’s acreage with a combination of development and step-out pilot drilling. In addition, the Company holds a 100% working interest position in approximately 225,000 acres of Duvernay acreage, located north-west of highly encouraging industry results in the Kaybob region.
Founded in 2010, CIOC is a privately held oil and gas company based in Calgary. The Company’s primary asset base is approximately 400,000 acres in the Deep Basin of West Central Alberta.
Forward Looking Statements
Certain statements contained in this press release constitute forward-looking statements or information (collectively “forward-looking statements“) within the meaning of applicable securities legislation, including, but not limited to, management’s assessment of future plans, operations and strategies, including the focus of the Company’s operations, proposed work programs and drilling plans, the anticipated effect of pad drilling and additional efficiencies on the Company’s drilling and completion costs, and other matters related to the foregoing. Forward-looking statements are typically identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “could”, “plan”, “intend”, “should”, “believe”, “outlook”, “potential”, “target” and similar words suggesting future events or future performance or may be identified by reference to a future date.
With respect to forward-looking statements contained in this press release, the Company has made assumptions regarding, among other things: availability of future acquisition opportunities; future capital expenditure levels; future oil and natural gas prices; future oil and natural gas production levels; future exchange rates and interest rates; ability to obtain equipment and services in a timely manner to carry out development activities; ability to market oil and natural gas successfully to current and new customers; the impact of increasing competition; the ability to obtain financing on acceptable terms; the general stability of the economic and political environments in which the Company operates; 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; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that the Company’s conduct and results of operations will be consistent with its expectations; that the Company will have the ability to develop its oil and gas properties in the manner currently contemplated; the estimates of the Company’s reserves and contingent resource volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; and that the Company will have the ability to add production and reserves through development and exploitation activities. Although the Company believes that the expectations reflected in the forward-looking statements contained in this press release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list is not exhaustive of all assumptions which have been considered.
Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the Company’s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the ability of management to execute its business plan; general economic and business conditions; the risks of the oil and natural gas industry, such as operational risks in exploring for, developing and producing crude oil and natural gas and market demand; the possibility that government policies or laws may change or governmental approvals may be delayed or withheld; risks and uncertainties involving geology of oil and natural gas deposits; the Company’s ability to enter into or renew leases; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production (including decline rates), costs and expenses; fluctuations in oil and natural gas prices, foreign currency exchange rates and interest rates; health, safety and environmental risks; risks associated with unexpected potential future law suits and regulatory actions against the Company; and uncertainties as to the availability and cost of financing. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
The forward-looking statements contained in this press release speak only as of the date of this press release. Except as expressly required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
“Boes” may be misleading, particularly if used in isolation. A Boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
References in this press release to initial production test rates, initial “flow” rates and “peak” rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. Additionally, such rates may also include recovered “load oil” fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for CIOC.
CIOC has not conducted a pressure transient analysis or well-test interpretation on the wells referenced in this press release. As such, all data should be considered to be preliminary until such analysis or interpretation has been done.
The following abbreviations used in this press release have the meanings set forth below:
|Mcf||thousand cubic feet|
|MMcf||million cubic feet|
|MMcf/d||million cubic feet per day|
|Boe||barrel or barrels of oil equivalent|
|Boe/d||barrels of oil equivalent per day|
|bbl/d||barrels per day|
|psi||pounds per square inch|
Scott W. Sobie
President and Chief Executive Officer