CALGARY, ALBERTA–(Marketwired – Sept. 29, 2014) – Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to announce that it has completed a drilling program of five horizontal oil wells and a water disposal well, all in Saskatchewan, increasing its current production average to a corporate record of 890 BOEPD.
SUMMER DRILLING PROGRAM RESULTS
At Evesham, Tuscany has successfully drilled two (1.2 net) new horizontal wells on the west side of its Evesham oil pool. The wells were placed on production in early September and are currently producing approximately 100 BOPD per well. Tuscany owns a 60% interest in these wells and is the operator.
At Macklin, Tuscany successfully drilled two new horizontal wells (100% working interest) that were put on stream last week, with production presently averaging approximately 100 BOPD per well.
Also at Macklin, Tuscany drilled a vertical water disposal well to the north of the main pool that was specifically located to target a significant Dina seismic anomaly. As press released September 12, 2014, the disposal well confirmed the Dina oil zone by encountering 9 metres of 33% porous sand while drilling to its deeper disposal target zone. The high quality nature of the Dina zone penetrated by this north Macklin water disposal well has resulted in Tuscany high grading this area of the property as next to be drilled and the Company is presently surveying locations for two offset horizontal wells with drilling expected to commence in November 2014. Geophysical and geological information indicates that up to 14 additional horizontal wells could be drilled in this northern area of the Macklin oil pool. Meanwhile, the water disposal well has been completed and an injectivity test indicates that the well should be capable of 10,000 barrels per day of injected water. This additional disposal capacity will not only allow Tuscany to tie-in three currently shut-in horizontal oil wells, but also to increase total fluid production from existing oil wells, adding approximately 100 BOPD production from the pool in early October.
At Rutland, Tuscany drilled a Dina oil well which encountered porous oil saturated Dina sand, but lower permeability than expected has resulted in the well averaging 10 BOPD. While production rates in this less permeable sand might be improved through the use of multi stage fracture stimulation, Tuscany has no immediate plans to conduct further operations at Rutland. Tuscany drilled this well on a promoted basis and retains a 75% interest in the property.
CORPORATE UPDATE
With the addition of the new Dina oil wells, Tuscany estimates that its current production rate has reached 890 BOED, a corporate record. As mentioned above, Tuscany plans to conduct additional drilling in the fall, with up to five new horizontal oil wells to be drilled in Q4-2014.
An updated corporate presentation can be downloaded from Tuscany’s website (www.tuscanyenergy.com), including maps and geotechnical data regarding the 14 new horizontal well locations at north Macklin. Management will be using this presentation during upcoming meetings with retail and institutional investors in Calgary, Toronto, Montreal and Ottawa.
[expand title=”Advisories & Contact”]ADVISORY: This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “potential”, “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “could”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to Tuscany’s drilling plans, plans to connect wells, water disposal capabilities and additional production estimates. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such planned drilling and connection of wells involves known and unknown risks, uncertainties and other factors that may cause actual plans to differ materially from those anticipated.
Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company 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.
Where amounts are expressed on a barrel of oil equivalent (BOE) basis, natural gas volumes have been converted to barrels of oil on the basis of six thousand cubic feet (mcf) per barrel (bbl). BOE figures may be misleading, particularly if used in isolation. A BOE conversion of six thousand cubic feet per barrel 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 mcf : 1 bbl, using a conversion on a 6 mcf : 1 bbl basis may be misleading as an indication of value. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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.
Tuscany Energy Ltd.
Robert W. Lamond
President & CEO
(403) 269-9889
(403) 269-9890 (FAX)
Tuscany Energy Ltd.
Donald K. Clark
Vice President Operations
(403) 269-9889
(403) 269-9890 (FAX)
www.tuscanyenergy.com
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