CALGARY, ALBERTA -- (Marketwired) -- 09/09/13 -- Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE: CEX) is pleased to announce that the fourth Contact-operated Kakwa Montney well, at 5-23-63-6 W6M (the "5-23 Well") has been successfully drilled horizontally to a total measured depth of 5017 meters. The 5-23 Well included a planned vertical stratigraphic penetration, whereby a full suite of logs throughout the Montney Formation was acquired and full diameter core data through the Upper and Middle Montney intervals was retrieved, allowing Contact to further calibrate the 5-23 Well and the other wells in the area. The drilling of the 5-23 Well was accomplished on time and on budget. Completion of the 5-23 Well, to include multi-stage fracing and flow testing, is anticipated to be concluded by late October 2013. Contact holds a 25% working interest in the 5-23 Well.
Contact is now mobilizing the drilling rig in anticipation of spudding the Company's fifth operated well at Kakwa by mid September 2013.
Lease construction of the Company's central compressor site is ongoing, with mechanical installation set to begin in early October 2013. Upon completion, this centralized facility will receive production from all Contact-operated Kakwa wells. The facility has been designed to reduce pipeline flowing pressures, assisting with both liquids lifting capacity in the wellbores and further pressure reduction on the reservoirs, and is also expected to eliminate the need for equipment currently employed at well sites to separate free condensate from natural gas. The facility remains on schedule for start-up prior to calendar year end.
Contact has been advised by the operator of the Kakwa Montney well at 14-2-63-6 W6M (the "14-2 Well") that this well is expected to be placed on production by the end of September 2013. Contact holds a non-operated 23.75% working interest in the 14-2 Well.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com
ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "continue", "estimate", "may", "will", "should", "believe", "plans", "cautions" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the timing for completion of the 5-23 Well, the timing to spud the Company's next operated well at Kakwa, the timing to complete construction of the centralized facility at Kakwa and operational advantages to be realized from this facility and the timing for the 14-2 Well to be placed on production.
Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Contact which have been used to develop such statements and information but which may prove to be incorrect. Although Contact believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Contact 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. In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities respecting the Deep Basin Montney project will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations at the Deep Basin Montney project; that additional drilling and completion operations in the Deep Basin Montney project will be successful such that further development activities in this area is warranted; that Contact will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the accuracy of the estimates of Contact's reserve volumes; the general stability of the economic and political environment in which Contact operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Contact to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Contact operates; and the ability of Contact to successfully market its oil and natural gas products.
Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Contact or by third party operators of Contact's properties, increased debt levels or debt service requirements; inaccurate estimation of Contact's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Contact's public disclosure documents. Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's Management Discussion and Analysis prepared for the year ended March 31, 2013. The reader is cautioned not to place undue reliance on this forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligations 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.
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.
Contact Exploration Inc.
President and CEO
(403) 695-3915 (FAX)
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