CALGARY, ALBERTA–(Marketwired – Aug. 17, 2015) – Marksmen Energy Inc. (“Marksmen” or the “Company”) (TSX VENTURE:MAH) is pleased to provide the following operation update:
Davis-Delong Unit # 1 Well
As previously announced this well is operated by our joint venture partners, Hocking Hills Energy and Well Services (“HHE”) and Chuck Henry Energy LLC (“CHE”). Marksmen has a 45% working interest in the well. It was spudded on July 20th
2015 and reached total depth on July 26th, 2015. The well is in Pickaway county and the target formation is a Cambrian Knox remnant.
The well has been logged, cased and completed. A pump-jack and temporary tanks have been installed to allow production testing. The well began producing on August 5, 2015 and has average daily production to date of approximately 60 barrels of oil gross or 27 barrels net to Marksmen. The well is currently producing only oil with no appreciable water. The first shipment of oil was made on August 9, 2015.
The capital cost of the well was originally approved by the joint venture partners at $300,000 USD. The actual costs are currently estimated to be much lower at approximately $220,000. This well, even at current prices and production rates is estimated to pay out the capital costs in three to four months.
BJ-78 #11 Workover
In the last number of months this well has undergone extensive technical review and it was determined that the well was a candidate for a workover. Marksmen successfully completed the workover on August 4, 2015. The process included plugging off the previous production interval and perforating another pay zone up-hole. The new interval was put on production on August 5, 2015 and has been producing at approximately 65 barrels of oil per day net to Marksmen.
Water Injection Facility
As reported previously the water injection facility was put on production in June of 2015. This eliminates the need to process water through a third party at a high cost per barrel. This facility has effectively reduced our lifting costs from over $20 USD per barrel to less than $8 USD per barrel. These low operating costs allows Marksmen to be cash flow positive from operations at existing or lower oil prices.
Seismic and Land
The 3D seismic programs that Marksmen completed previously in 2014 and during the first quarter of 2015 has resulted in over 6,000 net acres of 3D seismic to Marksmen. Marksmen has accumulated over 14,000 gross acres of land and is continuing its land acquisition program.
Marksmen’s seismic and drilling operations have outlined between 20 and 25 potential drilling locations including 8 that are offsets to existing producing wells. Marksmen plans to undertake additional 3D seismic work in the fourth quarter of 2015 on its existing lands.
Archie Nesbitt, President and CEO of Marksmen states ‘This is very exciting news for our shareholders. The Delong-Davis well validates the 3D seismic that Marksmen and HHE undertook in the first quarter of 2015 and our successful workover is the result of our technical team’s engineering and operational review to optimize our wells. This brings our net production to over 100 barrels of oil per day. We look forward to further growth from additional Marksmen wells and joint venture wells with our partners.
Further information will be released as it becomes available.
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Company’s drilling plans, operations and production. Pay out of a well is a generally accepted industry measurement. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Marksmen’s disclosure documents on the SEDAR website at www.sedar.com. Marksmen does not undertake to update any forward-looking information except in accordance with applicable securities laws.
Marksmen Energy Inc.
President, Chief Executive Officer and a Director