Update Ausable Field

RNS Number : 7704L

Solo Oil Plc

04 August 2011

 



Immediate Release, 2.30pm

4 August 2011

Solo Oil plc

('Solo')

Update Ausable Field

Solo Oil plc today announces further progress on the Ausable Field in South Western Ontario by its Joint Venture partner Reef Resources Limited ("Reef"). 

Reef has released a statement giving a further update on the progress of operations in the Ausable Field where the successful Ausable#5 well is being tested and fishing operations are underway at the Ausable#2 well to recover tools left in the well during previous operations.

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

August 4, 2011 - Calgary, Alberta - Reef Resources Ltd. announces that significant progress is being made on determining the Ausable #5 future flow rate.  The presence of very light oil, blended with natural gas condensates, creates foamy oil conditions and consequently the current mechanical bottom hole pumping configuration is operating at very low efficiency causing erratic flow rate and high fluid levels in the wellbore.  The Ausable field has now been shut in for a period of time to provide fluid level and pressure build up data that is necessary to determine the Ausable #5 likely flow rate using industry accepted inflow analysis technique and will be reported as soon as all data is processed.

When the likely ultimate flow rate has been estimated Reef will be able to design and execute a plan for long term lifting of the well fluids using revised pumping techniques that will allow the full potential of the well to be realised.

The removal of the frac tools from Ausable # 2 is also progressing.  The first stage of tubing cuts have been successfully executed and will now concentrate on extracting the frac tools over the course of the next few days.  Once the frac tools are removed the Company will report on the status of Ausable #2.

Arnie Hansen stated, "While still at a preliminary state, Ausable # 5 is looking very positive and the Company's engineering team is working on a solution to increase pumping efficiencies therefore increasing production.  This is the first stage of optimization with next goal to acquire and inject natural gas to re-pressure the reef that will significantly increase production and demonstrate the true value of the Ausable pool."

Neil Ritson, Solo Executive Director, commented:

"We are very pleased see that further progress is being made on establishing production at both well #2 and well # 5.  We look forward to further updates as the work progresses."

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 Felicity Geidt	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen	[phone]
Pelham Bell Pottinger Financial Public Relations Mark Antelme Henry Lerwill	[phone]

 

END

 

 

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