CALGARY, Jan. 27 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company") (TSX: WAV) is pleased to provide initial flow test information from its first horizontal multi-frac well at its wholly-owned Doig/Montney gas resource property in Fireweed, British Columbia.
The well was fractured with six staged treatments and opened to flow on cleanup for a 50 hour period. For the last 10 hours of cleanup testing, field measurements recorded that the well flowed at a rate of approximately 10 mmcf/d at nine MPa (1,300 psia) flowing tubing head pressure. The gas included approximately six percent hydrogen sulfide and five percent carbon dioxide. In addition, the well was producing approximately 300 bbls/d of natural gas liquids.
The first portion of the test was flared, with the last seven hours of the test being flowed in-line and sent through Breaker's facility to sales. As a result of the high rates and flowing pressures of this new well, Breaker has undertaken facility modifications to enhance the production capability from the existing wells and the new well. These modifications are expected to be completed by the end of the first quarter. Production at Fireweed should initially exceed 1,500 boe/d via this high impact result, up from approximately 750 boe/d prior to the drilling of this well. Breaker expects to spud its second Fireweed horizontal multi-frac well before the end of January.
The initial flow test results exceed the Company's expectations. Breaker will closely monitor the well's production performance in order to assist in formulating the production type curve for the pool. Breaker will use this type well information to assist in forecasting future production performance for the field, and ultimately optimal economic well spacing on full development.
This success confirms the potential of the Fireweed high rate, liquids rich resource play. Currently Breaker has identified 15 additional drilling locations at Fireweed and the Company's horizontal multi-frac resource play inventory is now in excess of 100 potential new locations. The resource play areas include Fireweed, Irricana light oil, and Provost sweet gas.
Breaker Energy Ltd. is a junior oil and gas company focused on creating shareholder value by growing per share production and reserves through acquisitions and a focused exploration, development and exploitation plan.
Breaker trades on the TSX under the symbol WAV.
Breaker has 41.0 million Class A Shares and 3.8 million Options outstanding as at January 27, 2009.
Forward-looking Statements
This press release contains forward-looking statements concerning anticipated: (i) success obtained drilling new wells, and (ii) operations activities.
Although Breaker believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Breaker can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in Breaker's Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and Breaker undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Note: Boe means barrel of oil equivalent on the basis of 1 boe to 6,000 cubic feet of natural gas. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boe/d means barrel of oil equivalent per day.
In this press release: (i) boe/d means boe per day, (ii) bbls means barrels of oil, (iii) bbls/d means barrels per day, (iv) mmcf means million cubic feet, (v) mmcf/d means million cubic feet per day, (vi) MPa means million pascals, and (vii) psia means pounds per square inch absolute.
The TSX does not accept responsibility for the adequacy or accuracy of this release.
%SEDAR: 00021180E