CALGARY, ALBERTA--(Marketwire - Sept. 11, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX VENTURE:PPY) is pleased to provide an operations update on the Company's Montney gas project in northeastern British Columbia. The Company has recently completed four (1.4 net) new Montney gas wells in the Daiber/Kobes area which are undergoing production testing. All four wells were drilled earlier in 2012.
The Daiber d-A44-C/94-B-16 (50% working interest; operated) lower Montney well is currently testing in-line through the Company's Daiber facility. During the past twelve days, this well has flowed at an average wellhead rate of 10.2 MMcf/d over 277 hours. The 24-hour peak rate averaged 13.1 MMcf/d and the most recent 24-hour rate was 9.3 MMcf/d at a current flowing casing pressure of 1,039 psi. The Daiber d-B44-C/94-B-16 (50% working interest; operated) middle Montney well is currently flowing back on initial cleanup. In addition to the middle Montney completion, this well was perforated and simulated across one stage in the upper Montney. During the past three days, this well flowed at an average wellhead rate of 3.2 MMcf/d over 65 hours. Additional test data from this well are expected within the next several weeks following the installation of production tubing.
The Kobes c-75-J/94-B-09 (20% working interest; non-operated) lower Montney well is currently testing in-line through the non-operated Gundy facility. During the past six days, this well flowed at an average wellhead rate of 5.6 MMcf/d over 131 hours. The latest 24-hour test rate was 5.3 MMcf/d at a current flowing tubing pressure of 570 psi. A second lower Montney well on the Kobes pad, the c-A75-J/94-B-09 location (20% working interest; non-operated), is also producing on test through the Gundy facility. During the past six days, this well flowed at an average wellhead rate of 8.0 MMcf/d over 133 hours. The latest 24-hour test rate was 9.7 MMcf/d at a flowing tubing pressure of 966 psi.
On the Blair block, Painted Pony has recently spud the first of two additional Montney wells (100% working interest) which are planned to be drilled, completed and tested prior to year-end. Both of these wells are located on the Town c-11-F/94-B-16 pad.
Painted Pony Petroleum Ltd. was recognized as a TSX Venture 50® Company in 2012. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.
Special Note Regarding Forward-Looking Information
This news release contains certain forward-looking statements, which are based on numerous assumptions including but not limited to (i) drilling success; (ii) production; (iii) future capital expenditures; and (iv) cash flows from operating activities. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.
With respect to forward-looking statements contained in this document, Painted Pony has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions that: (i) commodity prices will be volatile, and natural gas prices will remain low, throughout 2012; (ii) capital, undeveloped lands and skilled personnel will continue to be available at the level Painted Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; (iv) production rates in 2012 are expected to show growth from 2011; (v) Painted Pony will have sufficient financial resources with which to conduct the capital program; and (vi) the current tax and regulatory regime will remain substantially unchanged. Certain or all of the forgoing assumptions may prove to be untrue.
Certain information regarding Painted Pony set forth in this document, including its future plans and operations, the planning and development of certain prospects, production estimates and liquid recovery estimates, may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Painted Pony's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are cautioned that the foregoing list of factors is not exhaustive. Painted Pony's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
Additional information on these and other factors that could affect Painted Pony's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).
The forward-looking statements contained in this document are made as at the date of this news release and Painted Pony does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Special Note Regarding Disclosure of Crude Oil and Natural Gas Volumes
The well test results disclosed in this news release represent short-term results, which may not necessarily be indicative of long-term well performance or ultimate hydrocarbon recovery therefrom.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.