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CALGARY, Oct. 19, 2011 /CNW/ - Carmen Energy Inc. ("Carmen" or the "Company") announces that testing operations have been completed on the Leduc D3 well drilled at 14-7-38-3 W5M in the Sylvan Lake area of Alberta. The well was tested at a restricted rate of production over a three day testing period without the aid of artificial lift equipment. The oil rate was increasing over the three day test period and the last oil samples tested at 44.5 degree API. After recovery of substantially all load fluid and over a 24 hour test period, the well flowed at an approximate rate of 225 barrels of oil equivalent per day comprised of 43 barrels of light oil, an estimated 78 barrels of natural gas liquids and 630 thousand cubic feet of natural gas at a stable flowing pressure of 609 PSIG on a 20/64th inch choke. The well also produced approximately 87 barrels of formation water per day. The natural gas has an estimated five (5%) percent H2S concentration which will yield approximately 1.5 tonnes of sulfur products per day after processing. Volumes are quoted on a "sales" basis. These initial test rates may not be indicative of the future stabilized daily production rates.
The 14-7 well may be initially produced at higher or lower daily rates of production depending on good production practice ("GPP") for the area and after consideration of reservoir management factors. Carmen owns a twenty-five (25%) percent working interest in the well and lands which are subject to reduction to fifteen (15%) percent if the farmor party elects to exercise its right to back in and pay its proportionate share of the equip and tie-in costs for the well. The working interest partners are proceeding with the equipping and tie-in of the 14-7 well based on the test results obtained over the past several days.
Carmen also advises that it anticipates drilling operations will be completed on the second test well located at 12-22-38-4 W5M on a separate Leduc D3 reef anomaly within the next ten days and will report on the initial results at that time.
The Company will continue to report on the production, testing and drilling results of these wells once it has completed the various operations.
About Carmen Energy Inc.: Carmen is based in Calgary, Alberta and a publicly traded oil and gas exploration and production company. The focus is on exploration and development of Western Canadian Sedimentary Basin based oil and gas properties. The current projects are the Jumpbush properties in south eastern Alberta, the Ferrybank properties in central Alberta, the Sylvan Lake area properties in Southern Alberta and the Hamburg properties in northern western Alberta.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, the expected initial production rates, timing of completions on the second test well and information with respect to the Corporation's beliefs, plans, expectations, anticipations, estimates and intentions and the activities of the Corporation after the Transaction. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. . The forward-looking information in this news release describes the Corporation's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the risks associated with the oil and gas industry in general, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licences and leases in the conduct of its business, the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; reliance on third parties, reliance on key personnel, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof; failure to realize the anticipated benefits of acquisitions including the Acquisition; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on the Corporation's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
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 press release.