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Quest Oil's Acadia North Wells 10-22 and 15-34 Hit Viking Gas Reservoir Monday August 15, 6:00 am ET
ARLINGTON, Texas, Aug. 15, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTC BB:QOIL.OB - News) is pleased to announce the successful drilling of Acadia North Prospect. Wells ``10-22'' and ``15-34'' were drilled through casing and into the Arneson Viking Gas pool. On August 8, 2005, using an endless tubing unit, wells ``10-22'' and ``15-34'' entered into the Viking zone and encountered commercial quantities of natural gas. ADVERTISEMENT
Arneson Well 10-22-25-2-W4M
``The well was open to flow, to a testing unit, on August 9 and flowed immediately at a stabilized rate of 0.3 MMCFPD and a flowing pressure of 900 psi. After flowing for 16 hours under these conditions, it was decided to test the well at higher rates. The well was opened up even more and after 7 hours flowed at a stabilized rate of 5 MMCFPD and a flowing pressure of 855 psi. The well was shut-in on August 10 to record a build up pressure. The bottom hole pressure gauges will be pulled in the middle of the week and it is expected that an AOF for this well will be available within four or five days,'' said Jim Deck; Production Manager, Transaction Oil and Gas Ventures Inc.
Quest Oil, President and CEO, Cameron King, states, ``Well '10-22' establishes a benchmark well for Quest, the test data illustrates a sizeable well capable of producing at rates 10 times our anticipated flow of 0.5 MMCFPD. The Company is now waiting for all data to be retrieved and be interpreted to estimate gas reserve and life of the well.''
Quest Oil, Project Advisor, Richard Johnson P.Eng. remarks, ``The '10-22' well tested at rates of 5 million cubic feet per day (MMCFPD) at a high back pressure. This is a very strong well and should be held back to 1MMCFPD to 2 MMCFPD for engineering reasons until we fully understand the scope of this well and the zone. At current prices the well economic yield is $270,000 per month at 1MMCFPD and $540,000 when production is increased to 2MMcf/d. Well '10-22' by far is one of the best wells in the area.''
Arneson Well 15-34-25-2-W4M
The well penetrated the Viking Sand on August 8 and is currently shut in due to lost equipment in the hole. Testing and data collection was suspended for well ``15-34'' due to a break in the endless tubing coil. At the time of drilling out of casing, the bottom-hole motor and bit were lost down hole. The Company has called in contractors to fish out the motor and continue with testing upon its removal. Prior to losing the motor, the well produced gas at measured rates exceeding 0.130 MMCFPD. ``We did encounter high wellhead pressure measured during the drilling out process, this indicates the reservoir is not drained by production from offsetting wells and still contains significant gas reserves,'' said Richard Johnson, Project Engineer.
Quest Oil is considering implementing a 3D seismic program to fully understand the extent of the reserve throughout the Acadia valley. Based on the data received by the drill program, the reserve is significantly larger than expected and the Viking sand characteristics show sand thickening in areas. The company is also evaluating the economics of drilling two wells per section to drain the natural gas reserves to take advantage of the high commodity price.
ON BEHALF OF THE BOARD Quest Oil Corporation.
To find out more about Quest Oil Corporation (OTC BB:QOIL.OB - News), visit our website at http://www.questoil.com.
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