 |
| |
|
| |
| Last |
$0.28 |
| Day High |
$0.28 |
| Day Low |
$0.28 |
| Volume |
22100 |
| Change |
even |
| delayed 15-20 min |
|
|
|
|
|
 
| | July 04, 2006
WellStar Tests Second Well and Completes Drilling its Third Well
|
| | WellStar Energy Corp. (the "Company") announced today that completion operations have concluded on the second well of its Virgo Zama Project this week as reported by operator Warburg Resources. The well is currently being equipped with production equipment and production is expected to begin in early July. The well was swabbed and tested over a six day period for a total of 48 hours and produced 80 m3 of oil. This corresponds to a swab rate of 35.4 m3 per day or 222 bopd. Stabilized production rates are expected to be approximately 50% of the swab rate.
The Company's third well 102/7-22-115-5 W6M, was drilled and cased this month with rig release on June 27, 2006. The well encountered a significant oil column of 28 m. The operator expects that there are reserves left given the well log indications but that confirmation of this will require completion and testing. Completion operations commenced on June 30, 2006. The Company's interest is 75% Before Pay Out ("BPO"), and 48.75% After Pay Out ("APO"), subject to a Gross Over-riding Royalty of 15% on gas and a Sliding Scale (1/23, 5%-15%) royalty on oil.
WellStar has been granted the right to earn a 50% interest BPO and a 32.5 % interest APO in three properties, and a 45% and 30% interest in the fourth property subject to Crown and farmor royalties ranging from 5% to 22.5%. The participation cost for these interests is 50% of the estimated costs to re-enter, and/or drill and case four Keg River wells. In addition to these interests Wellstar has assumed a partners' interest in the 7-22 well of an additional 25% BPO and 16.25% APO (to total a 75% interest BPO and hat.
The Virgo-Zama area has been a prolific producer of oil and gas from Devonian Keg River reefs. The four prospects are all define by 3D seismic and all proposed wells offset former producers in existing pools.
On Behalf of the Board of Directors
"Andrew H. Rees"
Andrew H. Rees
President, CEO
This News Release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements. THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE, WHICH WAS PREPARED BY MANAGEMENT. |
| |
| | You can view the Next News Releases item: Wed Sep 6, 2006, WellStar Energy Begins Production on Third Virgo Zama Well
You can view the Previous News Releases item: Wed Jun 14, 2006, WellStar Begins Drilling its Third Well
You can return to the main News Releases page, or press the Back button on your browser.
|
Request More Information
|
