The first well was tested over a 15 day period and produced 10,800 bbls of new oil during the test period. Production rates averaged over 1,600 boe/d (76% oil) at flowing tubing pressures of 7,600 kPa over the final six days of testing, after all load fluid had been recovered. The second well was flow tested over seven days, with a final test rate of 1,400 boe/d (85% oil) at 4,800 kPa flowing tubing pressure after all load oil had been recovered. The third well tested at an average rate of 775 boe/d (59% oil) over the last two days of the seven day test and produced 2,200 bbls of new oil.
Due to the high-volume characteristics of the first two wells, Angle expects to produce these wells at restricted rates of 800 to 900 boe/d per well over the first 30 days of production. Angle is planning a facility expansion to be completed in the second quarter of 2013 to accommodate the high production rates from the Cardium wells in this area. Following this expansion, Angle plans to drill a minimum of four additional wells in the second half of 2013.
The total drilling inventory in this play is 35 wells, at a density of four wells per section. Recycle ratios are estimated to be approximately 2.7 times, with producing netbacks of $27/boe and finding costs (proved plus probable) of $10/boe.
Angle Energy Inc. is a public, Calgary-based oil and gas exploration and development company incorporated in 2004. Angle's objective is to build shareholder value through the profitable growth of its high quality asset base through a combination of drilling and strategic acquisitions. Angle's proven and dedicated team of industry specialists are focused on identifying and developing high quality assets in the Western Canadian Sedimentary Basin, with an emphasis in west central Alberta. Common shares of Angle are listed for trading on the Toronto Stock Exchange under the symbol "NGL."
Basis of Presentation
Production information is commonly reported in units of barrel of oil equivalent ("boe"). For purposes of computing such units, natural gas is converted to equivalent barrels of crude oil using a conversion factor of six thousand cubic feet of gas to one barrel of oil. This conversion ratio of 6:1 is based on an energy equivalent conversion for the individual products, primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation.
Information set forth in this press release contains estimates and forward-looking statements and are made as of March 11, 2013, including production test results, drilling results, drilling plans and exploring opportunities. These forward looking statements are based on assumptions as of that date. By their nature, estimated production results and operating netbacks, drilling plans and business opportunities are subject to numerous risks and uncertainties, some of which are beyond Angle's control, including the impact of reservoir quality, decline rates, volatility of commodity prices, drilling techniques, costs of third party services, general economic conditions, industry conditions, environmental risks, competition and interest from other industry participants, the lack of availability of qualified personnel or management, ability to access sufficient capital from internal and external sources and ability to identify and consummate business opportunities. Readers are cautioned that the assumptions and factors discussed in this press release and in the are not exhaustive and that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. Angle's actual results, performance or achievement could differ materially from those expressed in, or implied by, these estimates and forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the estimates and forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle or its shareholders will derive there from. Furthermore, while the production test results are useful in confirming the presence of hydrocarbons, they are not necessarily indicative of long-term performance or of ultimate recovery from a well and should not be used to calculate the aggregate production for Angle. Unless required by law, Angle disclaims any intention or obligation to update or revise any estimates and forward-looking statements, whether as a result of new information, future events or otherwise. The estimates and forward looking statements are expressly qualified by these cautionary statements.
Angle Energy Inc.
President and Chief Operating Officer
(403) 263-4179 (FAX)
Angle Energy Inc.
Chief Executive Officer
(403) 263-4179 (FAX)
Angle Energy Inc.
324 Eighth Avenue SW
Calgary, Alberta T2P 2Z2
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