Ausable EOR Project Update, Canada

RNS Number : 1730B

Solo Oil Plc

12 April 2012

 



For Immediate Release, 7 am

12 April 2012

SOLO OIL PLC

("Solo")

Ausable EOR Project Update, Canada

Solo today announces a further update on activities in South Western Ontario, Canada operated by its Joint Venture partner Reef Resources Limited ("Reef"). 

Reef's announcement, to the Toronto exchange, reads:

April 11, 2012 - Calgary, Alberta - Reef Resources Ltd. ("Reef" or the "Company") reports that petrophysical analysis has been finalized on the North Airport #1 well which reached total depth of 609 metres on March 29, 2012.  Advanced petrophysical evaluation performed by Houston based Nutech Energy Alliance indicates the presence of 63 metres of net hydrocarbon pay. This is the first well to be drilled on the North Airport reef identified by Company seismic.

The advanced analysis was also conducted on the existing Airport South #1 well and revealed a total of 57 metres of net pay. Completion programs for both the North Airport and Airport South wells are in their final stages with field completion work scheduled for sometime in May.  Production from the two Airport locations will be tied into the Ausable reef facility in order to supply natural gas for the Enhanced Oil Recovery (EOR) and natural gas liquids (NGL) project. The EOR program involves using dry natural gas to re-pressurize and energize the reservoir. 

The Union Gas meter was commissioned on April 6 and natural gas is now being injected into the Ausable reef.  To date approximately 3 mmcf of gas has free flowed into the Ausable pool from the Union Gas line.   The injection of gas into the Ausable reef is a key milestone in the execution of the Company's EOR program.  As of yesterday the injection rate has been increased to 1 mmcf/d and will be maintained until natural gas from the Airport wells is available.  The ultimate objective is to inject up to 500 mmcf to return the reservoir to virgin pressure thereby maximizing oil and gas-condensate production and recovery factor.  Enhanced oil production rates will be experienced almost immediately and these will continue to build over time. 

Dry weather conditions have now allowed acceleration of the pipelining and production optimization programs.  The South Airport pipeline to the Ausable facility is now nearing completion.  The pipeline should be substantially complete by end of April.  The venturi pump installation and pipeline connection to the shut-in Ausable #2 horizontal well is in its final stages of completion with commissioning also anticipated by end of April.

Neil Ritson, Solo Executive Director, commented; 

"The provision of utility gas to the Ausable field is a major milestone in the EOR program and confirms our confidence that production will rise steeply in the second half of 2012 towards the anticipated 500 bopd year end exit rate.  The presence of over 60 metres of net gas pay in the new North Airport well and confirmation of a similar amount of pay in the Airport South well, also contributes strongly to the project economics."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Old Park Lane Capital Plc Joint Broker Michael Parnes Luca Tenuta Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                             Public Relations Mark Antelme  Henry Lerwill	[phone] [phone] [phone]

Glossary:

bopd                                     - barrels of oil per day

EOR                                        - enhanced oil recovery

mmcf                                    - million cubic feet of gas

mmcf/d                                - million cubic feet of gas per day

NGL                                        - natural gas liquids

 

END

 

 

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