Drilling Report

RNS Number : 5341F

Solo Oil Plc

18 June 2012

 

For Immediate Release, 7 am

18 June 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:

Reef is pleased to report that the completions conducted on South Airport #1, North Airport #1 and the workover of Ausable #4 have been successfully completed.  Swabbing has been initiated on South Airport #1 and flow test results will be reported when a stabilized flow rate has been established. The North Airport #1 multi-stage stimulation treatment was finalized on June 14, swabbing and flow results to be reported as they become available.  A workover on Ausable #4 was conducted to breakdown wellbore emulsions.  The chemical squeeze was successful and flow rates will be established once a venturi pump is installed and in operation.

Based on experience gained over recent months a facility upgrade has commenced with the planned installation of a high volume water/oil/gas separator, water filtration system for the venturi pumps, water line heater to mitigate potential wellbore waxing issues and the necessary piping, electrical and control modifications. 

Additionally, the 5 kilometre South Airport pipeline to the Ausable facility is now complete and will be commissioned once the South Airport well is ready for production.  The infield Ausable well pipeline tie-ins are also complete and will be commissioned along with the upgraded Ausable facility.  Once the facilities upgrade is in full operation wells Ausable #1, #2, #4 and #5 will be placed on oil and gas liquids production.  The produced gas and gas liquids from South Airport #1 will be used for gas re-injection and recycling.    

It is not currently intended to establish stabilised oil flow rates from the Ausable field wells until the additional facilities have been commissioned.  In the interim, gas from Union Gas continues to be injected into the field to provide voidage replacement and pressure enhancement of the Ausable reef as part of the long-term enhanced oil recovery program. To date 24.7 mmcf of gas has been injected in the Ausable field resulting in positive pressure increases in the outlying wells.  Dry natural gas from Union gas along with produced gas from the Airport wells, once on stream, will continue to be injected with real time pressure monitoring conducted across the entire reef.  Real time pressure monitoring along with production history from all wells will ultimately determine optimum well placement and recovery factors.

Neil Ritson, Solo Executive Director, commented; 

"Reef continues to make steady progress towards having all the Ausable and Airport wells on stream and the Ausable enhanced oil production and gas cycling scheme fully commissioned.  The hoped for production from the main Ausable oil production wells, including Ausable #5, has been deferred by several weeks, however, it is clear that all the commissioning issues are with surface equipment and that the wells will meet previously anticipated performance expectations.  We believe that Reef can now complete the final facilities modifications quickly and that stable production can be initiated shortly. "

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]

 

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