VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/13 -- Petro One Energy Corp. (TSX VENTURE: POP)(PINKSHEETS: CUDBF)(FRANKFURT: C6K1) is pleased to report that the Frobisher well recently drilled by its farmout partner at Bromhead, Saskatchewan averaged 107 bopd and produced 5,883 barrels of light oil during its first 1320 hours (55 days) of production.
"Based on the excellent oil volumes recorded thus far, this new well should substantially increase Petro One's cash flow and daily oil production, and add significantly to the Company's reserve base," said Petro One President Peter Bryant. "Petro One is encouraged by the prolific, long term production that has been demonstrated by producers in the immediate area in the Frobisher. We look forward to the potential development of the remaining sections of the 100% controlled J10 property."
As a result of drilling and completing the Bromhead well, as discussed in the Company's January 21, 2013 news release, the farmee has earned a 100% working interest in the Bromhead well spacing unit (2 LSDs - 80 acres) subject to a 10% GORR that Petro One has the option to convert to a 30% working interest following payout. Another prime horizontal development drilling location is indicated on the two earned LSDs west of the discovery well. If the farmee drills this location in future, Petro One will benefit from the same 10% GORR or, if it has exercised its conversion option, be entitled to a 30% working interest. The farmee has elected not to exercise its continuing option on other Petro One land at J10 at this time, so Petro One retains its 100% interest in the remaining 87.5% of the Bromhead property (14 LSDs - 560 acres). The Company's geological team is of the view that the correlation between seismic tests, other data and the strong results of the first well indicate that multiple prime drilling locations remain on the 100% controlled Petro One land.
The new Bromhead well is producing oil from the Frobisher Beds, a porous limestone unit that is widespread in southeast Saskatchewan. The Frobisher is being extensively developed with horizontal drilling in many areas, resulting in long-lived production at good rates. Limited Frobisher drilling has been done in the J10 area to date, but a former vertical Frobisher producer 220 metres downdip from the property yielded more than 100,000 bbl of oil from the Frobisher with a one month IP of 95.6 bopd, as well as more than 407,000 bbl of oil from the overlying Midale Beds, with a one month IP of 146 bopd. The oil in this former producer is light, with an API gravity of 28.1.
Petro One looks forward to releasing the three month IP rates, and updated reserve status as soon as they become available.
NATIONAL INSTRUMENT 51-101 DISCLOSURE
Oil production during a period is generally expressed in terms of "barrels per day" or "BOPD", which indicates the total oil produced during a period divided by the number of hours that the well was in production during that period. "Barrels per day" is indicative of flow rate while a well is in production and does not mean that such well was in constant production during such period.
ON BEHALF OF THE BOARD
Peter Bryant, President & Director
For further information, please visit the company's website at PetroOneEnergy.com and follow the Company's tweets at Twitter.com/PetroOneEnergy.
Neither 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 release.
King James Capital Corporation
(604) 805 0375
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