CALGARY, ALBERTA--(Marketwired - Dec. 9, 2015) - Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to announce that it put its Winter 91/5-36-42-25W3 horizontal oil well on production December 4, 2015 and over the past two days the well has produced at an estimated rate of 130 barrels of oil per day.
Early production results from this new pool well are as strong as results of wells at our more established Macklin and Evesham properties. The Dina oil zone that was encountered correlated closely with Tuscany's interpretation of the 3D seismic, which extends over the entire structure. With this technical interpretation confirmed, Tuscany estimates that up to 10 additional horizontal wells could be drilled in this new Dina oil pool, all on Tuscany's 100% working interest crown land.
The addition of the Winter well is estimated to have increased Tuscany's production to approximately 850 boed.
The initial production rates included herein are for two days and may not be indicative of sustained production rates from the property or the reserves recoverable therefrom. Typically the water cut from Dina wells increases over time and oil production declines.
Disclosed herein are eleven unbooked drilling locations. Unbooked locations are internal estimates based on prospective acreage and an assumption as to number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have any attributed reserves or resources. Unbooked locations have been identified by management as an estimation of our future drilling activities based on an evaluation of applicable geological, seismic, engineering, production and reserves information. There is no certainty that we will drill all or any of the unbooked locations, and if drilled, there is no certainty that such locations will result in addition oil and gas reserves, resources or production. The drilling locations on which we actually drill wells will also be dependent upon the availability of capital, regulatory approvals, seasonal restrictions, commodity prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling the Winter well in relatively close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from the Winter well where management has less information about the characteristics of the reservoir therefore there is more uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that such wells will result in additional reserves, resources or production.
Disclosure provided herein in respect of barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
NEITHER THE 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 RELEASE.
(December 9, 2015 - 9:01 AM EST)
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