VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/18/13 -- Petro One Energy Corp. (TSX VENTURE: POP)(PINKSHEETS: CUDBF)(FRANKFURT: C6K1) is pleased to provide a corporate update for the first three quarters of 2012-2013. From May 1, 2012 to January 31, 2013, the Company's Milton wells produced a total of 3,764.6 bbl of oil and returned $300,380 from oil sales. The principal contributors were 10A-15- 30-27W3 with 2,151 bbl with 138 days of production (average 15.6 bopd), and 11-15- 30-27W3 with 1,262 bbl in 146 days of production (average 8.7 bopd). Both wells were down for part of the third quarter due to weather conditions, operations, and maintenance. However, both wells are now back in production. Since its first well was drilled, Petro One has received total revenues of $715,470 from the sale of 8,617 bbl of oil.
The Company's Bromhead farmout discovery well had its first full month of production in January, 2013. Pursuant to the farmout agreement announced in its news release dated August 28, 2012, Petro One realized net proceeds of $29,844 for its 10% GORR for the month of January 2013, and an additional $4,182 for 3 days of initial production during December. Petro One retains the option to convert this GORR to a 30% working interest after payout. Production continues at Bromhead, with proceeds for February expected at month's end. Additional strong horizontal development drilling locations are indicated west of the discovery well. Further development drilling by the farmee on the earned quarter section will give Petro One the benefit of the same 10% GORR or, if it has then exercised its conversion option, a 30% working interest. The Bromhead discovery well has significantly added to the company's cash flow, and upgraded the potential of the remaining 560 acres containing several strong horizontal development drilling locations. Combined oil revenues from the Milton and Bromhead properties from May 1, 2012 to January 31, 2013 totaled $334,316.
MILTON DEVELOPMENT UPDATE
Petro One's 100% controlled Milton property covers four sections. Current production is coming from the highly porous and permeable conglomerate layer at the base of the Viking that runs east-west through Section 15. This reservoir is typical of conventional Viking production in the area that is amenable to vertical drilling. In areas outside the conglomerate trend, recent horizontal drilling in nearby fields is yielding water-free oil from the thicker upper Viking sand, with three month initial rates up to 117 bopd. Drill core from both the 10A-15 and 15-15 wells confirmed that upper Viking sand is very well developed on Petro One's property and contains oil throughout the layer, making it an excellent target for horizontal drilling. The next round of development drilling is therefore planned to focus on the upper Viking at Milton. An initial horizontal well is planned to be spudded on or before June 30, 2013, and a total of at least 30 additional drilling locations have been identified. This development plan at Milton will be cost effective and efficient due to the Company's existing operations and infrastructure in the area.
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