VANCOUVER, British Columbia, Jan. 24, 2018 (GLOBE NEWSWIRE) -- Yaletown Energy Capital Corp. (“The Company”) is pleased to announce that it has successfully completed its inaugural well rehabilitations that were performed on two conventional suspended vertical oil wells located in close proximity to each other in the Galahad region of southeastern Alberta, owned 100% by Rally Canada Resources Ltd. (“Rally Oil”).
Following the use of the Multifunction Neutron Imaging System (“MNIS”), a well logging tool developed by Frontier Sonde Inc. which enables the logging of cased-holes by recording the return pattern of epithermal neutrons, the Company was able to assess accurately the intervals of water ingress and oil-bearing lithologies within previously-perforated zones in the Ellerslie Formation.
Utilizing the interpreted MNIS well log results, which were also correlated with a separate cement bond log to assess well casing integrity, the Company was able to design a water-blocking strategy that deployed a customized cement squeeze of the perforated regions, together with milling and re-perforation of the pay zones.
Following a short settling period, production from the two wells was resumed at a combined rate of close to 20 barrels/day. This production rate represents an approximate 200% increase from the total daily production of the two oil wells prior to the Company’s well rehabilitation efforts. The results from the second rehabilitated well were particularly encouraging, with the BS&W water cut measured from testing of multiple wellhead samples by AGAT Laboratories reduced from 99% pre-rehabilitation to 72.7% post-rehabilitation. Significant production economies were also realized as the total volume of water produced was reduced from over 1,400 barrels per day to approximately 240 barrels per day.
Mr. Yuhu Zhang, Chairman of the Company states: “We are delighted that we were able to perform our first oil well rehabilitations successfully in the Canadian Western Sedimentary Basin. We have been able to demonstrate the accuracy of the MNIS well logging technique in conjunction with the use of advanced water blocking methods to rehabilitate and increase production from low-producing or previously shut-in oil wells.”
Mr. Emil Fung, President & CEO of the Company states: “We have reached an exciting milestone in our Company’s development. With the experience gained from these first wells, we look forward to undertaking more rehabilitation ventures with other producers who seek to re-initiate well production. As the Company finances the cost of its well rehabilitation efforts, our well partners face minimal operational and investment risk, yet gain significant upside from increased production, potentially coupled with an immediate improvement in their LMR status.”
Mr. John Lee, Production Manager of Rally Oil states: “Yaletown Energy Capital has demonstrated that their MNIS logging and rehabilitation workovers have resulted in significant uptick in daily oil production in Rally’s low-producing and shut in wells. Their planning and the execution of the rehabilitation programs have been thorough and on schedule. Rally looks forward to partner with Yaletown on future wells to explore additional barrel-adding potentials using their rehabilitation method.”
ABOUT YALETOWN ENERGY CAPITAL CORP.
The principal business of Yaletown Energy Capital Corp. is the re-habilitation of suspended oil wells in the Canadian Western Sedimentary Basin using innovative analytical and recovery technologies. The Company engages in a “win-win” partnership with owners of suspended oil wells by solely bearing the investment risk associated with the conduct of technologically-advanced well logging, water shut-off and re-completion techniques. Upon successful well rehabilitation, the Company shares in the proceeds from resultant production. In the Province of Alberta alone, there exists over 165,000 suspended oil wells, offering the Company significant opportunities to target the re-habilitation of high-yielding wells with low production decline characteristics.
Yaletown Energy Capital Corp. is a Canadian public reporting issuer (CUSIP # 98459P) whose corporate and financial information can be viewed at www.sedar.com and at www.yaletownenergy.com.
On behalf of the Board of Directors
“Emil Fung”
President and Chief Executive Officer
For further information, please contact:
Emil Fung
info@yaletownenergy.com
Forward looking statements
Certain statements contained in this release may constitute forward-looking information. These statements may relate to future events or future performance, including the use of proceeds of the Private Placement. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Any forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward ‑ looking information. The foregoing statements expressly qualify any forward ‑ looking information contained herein.