PTII NEWS VANCOUVER, Oct. 11 /PRNewswire-FirstCall/ - Patch International Inc. (PTII: OTCBB) is pleased to announce that it has entered into an agreement to participate in a second drill program on an adjacent property to their W5M McLeod oil well discovery (2-20) in the Edson area of Alberta, Canada.
The operator plans to spud a new well (10-20) at the McLeod project to test the Middle Ellerslie and Basal Belly River zones encountered in the McLeod 2-20 well. The operator is very optimistic that the 10-20 well is anticipated to encounter the optimum Middle Ellerslie beach reservoir and that it could also extend the Basal Belly River channel reservoir from the 2-20 well.
The first McLeod well (2-20) flowed at a rate of approximately 200-300 barrels of oil (38 degrees API) per day based on a 24-hour production test. The testing showed outstanding oil recovery results with the last swab recoveries being 99% oil and 1% water. The operator has informed PTII that full production from the well is anticipated to begin in mid-October 2005.
David Stadnyk, PTII's President and Chief Executive Officer said, "We are very pleased that the operator has elected to spud the second well this quickly as we are focusing more and more at evaluating and selecting opportunistic domestic asset acquisitions. Alberta is truly a world class oil region and it is where PTII's oil expertise is stationed. We are very excited about the incredible project opportunities in the region, particularly in the multi-billion dollar Albertan oil sands."
The McLeod Project is a W5M- west of the fifth meridian property and PTII is participating for a 10% working interest and a 6.0% net interest on the successful first well and a 6.5% working interest to earn 6.5% on all subsequent wells. The first well indicated that a commercial gas well was anticipated from the key target zone- the Ellerslie zone- and that a second key oil zone- the Basal Belly River zone- could be commercially viable as well. The positive results from the Basel Belly River zone confirmed the commercial oil well success and resulted in the decision to drill the second well.
ABOUT PATCH INTERNATIONAL
PTII is a junior oil and gas producer that currently earns oil revenue from 19 oil wells. These wells provide the company with both short-term and long-term cash flow. This cash flow is expected to increase in the very near future when the McLeod well is brought on line in mid-October. It is anticipated that these wells will have a life of over 15 years. PTII has properties in North America, and is exploring opportunities in North Africa, South America, and Ukraine. PTII holds 11.2 million shares in Pharmaxis (Australian Stock Exchange: PXS, NASDAQ NM: PXSL) of which 5.6 million have been declared as a dividend, and is one of the largest shareholders with the Rothschild Group. PTII plans to use the proceeds from this investment to build the company's oil and gas assets and just as PTII's pioneering pharmaceutical efforts are coming to fruition, PTII believes that the coming months will be a period of tremendous success for the company's domestic and international oil and gas prospects.
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