Mystique Energy, Inc. Announces Development Drilling Program
Monday September 13, 1:14 pm ET
CALGARY, Sept. 13 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSX Venture: MYS - News) announces a multi-well development drilling project in the Lochend area located northwest of Calgary. The drilling of the wells will target the Cardium formation in the Lochend Cardium B pool. Under the terms of farm-in agreements with Provident Energy Ltd. ("Provident") covering 5280 gross acres of undrilled land, Mystique has agreed to drill a minimum of three wells, the first of which is expected to start drilling in September. The drilling of all three wells is expected to be completed before the end of the year. Following the drilling of the first three earning wells, Mystique can elect to drill option wells on the remaining lands. For all the wells covered by the farm-in agreement, Mystique will pay 100% of Provident's share of the costs of drilling, completing and equipping the wells to earn 50% of Provident's working interest in each 160 acre drilling spacing unit. Provident's working interests range from 79% to 100% in a total of 5280 acres of undrilled land. Mystique will operate the drilling, completion and equipping of the wells.
To date, the Lochend Cardium B pool has produced a total of 270 thousand barrels ("Mbbl") of oil and natural gas liquids, and 2.8 billion cubic feet ("Bcf") of natural gas. Presently, production from the 27 wells in the pool averages approximately 100 barrels of oil equivalent(x) per day per well. The drilling program is intended to extend the pool to the northwest and southeast. The offsetting Lochend A, C & E pools have produced a total of 4400 Mbbl of oil and natural gas liquids and 22 Bcf of natural gas.
According to President of Mystique Energy, Vic Luhowy, "This low risk development drilling project will provide the initial growth opportunity for Mystique. If the pool can be extended and developed along most of the farmout lands, the eventual production result will have a substantial impact on Mystique."
Based in Calgary, Mystique Energy, Inc. is involved in the exploitation and production of petroleum reserves in western Canada.
(x) Use of the phrase "barrels of oil equivalent" may be misleading, particularly if used in isolation. A barrel of oil equivalent conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties, and other factors that could influence actual results are described in documents filed with regulatory authorities.
For further information
Mr. Victor Luhowy, President & Chief Executive Officer, Mystique Energy, Inc., Tel: (403) 261-3634, Fax: (403) 265-3348, email@example.com
Mr. Robert Rowell, Investor Relations, Hedlin/Lauder Associates Inc., Tel: (403) 232-6251, Fax: (403) 269-7566, firstname.lastname@example.org
Website - www.mystiqueenergy.ca