Nextraction Energy (TSXV: NE) Provides Provost Operations Update
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Calgary, Alberta - (Newsfile Corp. - April 8, 2014) (www.investorideas.com newswire) Nextraction Energy Corp. (TSXV: NE) (the "Company" or "Nextraction") is pleased to provide an update on the Company's recently drilled 102/12-36-036-07W4 ("12-36" or "well") horizontal well on its light oil property in Provost, Alberta. The well was placed on production on March 9, 2014 at a rate of 9 bbls/d of oil and 51 bbls/d of water, producing with a 15% oil cut. After 4 weeks of production the well has improved to 55 bbls/d of oil and 85 bbls/d of water, for a 40% oil cut, while still recovering frack fluid.
The well was drilled into the Viking formation at a depth of 800 meters with a horizontal leg of 570 meters. The well was fractured stimulated in 13 stages with 10 tonnes of sand per stage. Despite harsh winter conditions during execution of the project, field costs have been estimated at $1.35 million to drill, complete and equip the well, which is approximately 33% lower than previous wells drilled on Nextraction's property and in line with major Viking operators in the area.
As disclosed previously, the 12-36 well was drilled on Nextractions 50% working interest land; however the Company's joint venture partner has elected not to participate in the well. Therefore, Nextraction is the operator and will pay for 100% of the costs to drill, complete and equip the well and will retain a 100% working interest in the well until such time as 300% of the partner's share of the costs has been recovered from the partner's share of the net operating income from the well. The well was drilled on the same geological trend as the Company's successful 102/16-34-036-07W4 drilled in August 2012, which has recovered over 26,000 bbls of oil to date. Two successful wells drilled on offsetting land in 2013 on the same trend have produced over 20,000 bbls of oil combined in their first 7 months of production.
Company President Kent Edney states "We are very pleased with the initial results from the 12-36 well and the execution of the project by the Nextraction team. The well is performing in line with management's expectations and the significant reduction in costs from previous drilling programs is an important milestone for the Company. We look forward to an active 2014 drilling program as we follow up on the success of the 12-36 well."
Certain statements made and information contained herein may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "may have", "could", "would", "might" or "will" be taken, occur or be achieved.
Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
These statements speak only as of the date of this News Release and are expressly qualified, in their entirety, by this cautionary statement.
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