CALGARY, ALBERTA -- (Marketwire) -- 03/27/13 -- Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX VENTURE: PPY) is pleased to provide the following operations update and activity outlook:
Operating highlights to-date during the first quarter of 2013 include:
-- the Company recently completed, and is currently production testing, two 100% working interest wells in the Townsend area on lands acquired in December 2012;-- Painted Pony's third Lower Montney horizontal well drilled on the Townsend block flowed at a peak and final 24-hour rate of 8.3 MMcf/d at an average flowing casing pressure of 1,915 psi. Gas analyses indicate a total liquids content of 109 bbl/MMcf, including ethane, which translates to an initial combined test rate on a boe-equivalent basis of 2,071 boe/d; and-- Painted Pony's first Upper Montney horizontal well drilled on the Townsend block flowed at a peak and final 24-hour rate of 6.6 MMcf/d at an average flowing casing pressure of 1,118 psi. Gas analyses indicate a total liquids content of 147 bbl/MMcf, including ethane, which translates into an initial combined test rate on a boe-equivalent basis of 1,843 boe/d.
-- finished completion operations and commenced production testing on 2 (0.4 net) non-operated Montney wells at Gundy;-- the first Gundy well, also Painted Pony's first Middle Montney horizontal well drilled on this block, flowed at a peak and final 24- hour rate of 13.9 MMcf/d at an average flowing tubing pressure of 1,413 psi. This well is the best Middle Montney test to date within the Company's British Columbia Montney project; and-- the second Gundy well, an Upper Montney horizontal well, flowed at a peak 24-hour rate of 6.2 MMcf/d at an average flowing tubing pressure of 673 psi.
-- commenced drilling operations on the first of two 100% working interest Upper Montney horizontal wells situated on the 91-F development pad at Blair; this drill program is testing the potential for increased gas liquids content along the northeastern edge of the Blair block; and-- repairs to the Cypress pipeline have now been completed; production of approximately 3 MMcf/d from the Cypress area is expected to re-commence in April 2013.
-- the first well drilled into Painted Pony's Viking light oil project at Corbett, Alberta tested 31 degree API oil; the Company recently acquired 12 (12 net) additional sections of undeveloped land on this play, bringing the Company's total to 18 (18 net) sections (11,520 acres) all at 100% working interest; and-- participated in the drilling and successful completion of the first 2- mile horizontal development well on the Company's Bakken light oil project at Flat Lake, Saskatchewan; this well has recently been placed on production.
-- as previously reported, field-estimated sales volumes during the first two months of 2013 averaged approximately 8,200 boe/d (78% weighted to gas).
MONTNEY GAS PROJECTS
Painted Pony continues to pursue the development and expansion of its Montney gas assets in northeastern British Columbia. To-date during the first quarter of 2013, the Company has drilled or is currently drilling a total of 5 (2.6 net) Montney horizontal wells. Eight (6.4 net) Montney wells have been or are in the process of being completed and placed on production test.