CALGARY,
Oct. 10, 2013 /CNW/ - Emerald Bay
Energy Inc. (TSX Venture: EBY)
(the "Company"or "Emerald Bay") is pleased to provide an update on
recent activities in Texas.
At Wooden Horse the Company has completed the
construction of all production facilities and has begun pumping the
recently drilled Edwards Horizontal well, Kuhn 1H.
Emerald Bay
President, Shelby D. Beattie,
expounded, "It is typical during initial phases of production for
an Edwards horizontal well to yield 100% water for a period of time
before the oil cut is established. This initial phase can
last days or months as each well can be very different; further,
the optimization of the well and facilities can also take some
time. Kuhn 1H has now been pumping for over two
months.The facilities have functioned flawlessly to date, and the
first oil cut has now been observed."
The Company will continue fine tuning the
pumping procedure to achieve a consistent oil cut and initial oil
production rate in the near future.
Also at Wooden Horse, the vertical wells Kuhn 1C
and Imhoff 1 have been producing for several weeks with the first
load of oil having been sold from Kuhn 1C in September. Just
as with Kuhn 1H these vertical wells take time to establish a
consistent oil cut. The Company is confident that the
vertical wells will add a solid economic return to the Wooden Horse
play.
At Cottonwood Creek, the recently drilled
Poenitz 1 well has completed its initial testing phase.
Unlike the Wooden Horse wells, this is strictly an oil well with no
water to handle. The Company is pleased with the initial flow
rates and the high grade of crude. Facilities are being
completed this week and Poenitz 1 will be producing full time in
the coming days. The Company has identified additional
locations and drilling of the second well will commence in the
coming weeks.
At Nash Creek,
the Company has recently received the Ground Water Protection
Determination which allows permitting for a salt water disposal
well to proceed. It is anticipated that the permit process
will take 60-90 days and the well will be drilled once the permit
has been granted. Similar to the development of the Wooden
Horse play, the salt water disposal well is the key initial step
for developing the Nash Creek
play.
At Holmes Lake, land acquisition efforts have
successfully concluded for the initial exploratory stage of the
project. It is expected that drilling of the initial test
well will take place in early 2014.
In Atascosa and
Medina Counties Texas, Production
Resources Inc. ("PRI"), a private company in which Emerald Bay has 25% ownership, continues to move
ahead with drilling new wells as well as workovers of existing
wells. PRI has seen production double from 50 bpd to 100 bpd
in the past year. With the addition of the recently acquired
wells in the Somerset Field and the re-perforating program that PRI
is undertaking, it is anticipated that PRI will see production
double again in the next six to nine months and sustainable growth
on existing land holdings for several years to come.
About Emerald
Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with
production properties in Western
Canada and South
Texas. The common shares of Emerald Bay trade on the
TSX Venture Exchange under the symbol "EBY". Please visit
www.emeraldbayenergy.com.
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Forward-Looking Statements
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe," "estimate," "project," "expect", "plan", "intend",
"anticipates", "projects", "potential" or similar
expressions.. Forward-looking statements inherently involve risks
and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Forward-looking
statements are statements that are not historical facts.
Information inferred from the interpretation of
drilling results may also be deemed to be forward looking
statements, as it constitutes a prediction of what might be found
to be present when and if a well is actually developed. BOE's may
be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 Bbl is based on energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. The reader is
cautioned that assumptions used in the preparation of such
information, which are considered reasonable by Emerald Bay at the time of preparation, may
prove to be incorrect. Actual results achieved will vary from the
information provided and the variations may be material. There is
no representation by Emerald Bay
that actual results achieved will be the same in whole or part as
those indicated in the forward-looking statements.
Forward-looking statements in this document include statements
regarding the Company's exploration, drilling and development
plans, the Company's expectations regarding the timing and success
of such programs. In particular, forward-looking information in
this news release includes, but is not limited to, statements with
respect to: pipeline acquisitions and leasing; pipeline permits,
pipeline construction, production estimates, drilling operations,
completion operations, funding and development goals.
Although we believe that the expectations reflected in the
forward-looking information are reasonable, there can be no
assurance that such expectations will prove to be correct. We
cannot guarantee future results, level of activity, performance or
achievements. Consequently, there is no representation that the
actual results achieved will be the same, in whole or in part, as
those set out in the forward-looking information. Factors
that could cause or contribute to such differences include, but are
not limited to, fluctuations in the prices of oil and gas,
uncertainties inherent in estimating quantities of oil and gas
reserves and projecting future rates of production and timing of
development activities, competition, operating risks, acquisition
risks, liquidity and capital requirements, the effects of
governmental regulation, adverse changes in the market for the
Company's oil and gas production, dependence upon third-party
vendors, and other risks detailed in the Company's periodic report
filings with the applicable securities regulators.
SOURCE Emerald Bay Energy Inc.