PRD Energy Announces Preliminary Boerger 7A Results
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.
PRD Energy Inc.Michael GreenwoodChairman and Chief Executive
Officer(403) 234-0501(403) 234-0511PRD Energy Inc.Mark
HornettPresident and Chief Operating Officer(403) 234-0501(403)
234-0511PRD Energy Inc.Jeff ScottVice President Finance and Chief
Financial Officer(403) 234-0501(403) 234-0511
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