Atikwa Resources Inc.

April 01, 2010 18:21 ET

Atikwa Announces Operational Update

CALGARY, ALBERTA--(Marketwire - April 1, 2010) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) is pleased to announce preliminary results from the horizontal Alida well drilled on its Pierson, Manitoba land at 4-24-2-29 W1M. The well was drilled to a measured depth of 1704 meters and preliminary results appear encouraging, although full production testing will not be feasible until road bans are lifted, the Company did encounter good reservoir rock with oil shows and gas detected throughout 75% of the horizontal leg.

When road bans are lifted and surface conditions permit, the Company plans to move the drilling rig to the next drilling location, which will target the Spearfish formation and then move a service rig into the 4-24 location in order to complete the evaluation of the horizontal wellbore, and prepare the well for continuous production. The Company had originally hoped to be able to drill its second horizontal target in Manitoba before the spring road bans went into effect, however due to unseasonably warm weather in the area the operation was deferred. The Company is currently in the process of licensing the second Manitoba drilling location in preparation for the recommencement of drilling operations.

Moving to Saskatchewan, early production results from the Roncott 7-27 Bakken vertical well continue to be within the Company's original expectations of approximately 20 barrels of oil per day. The Company will be able to truck some produced oil from the well during the Saskatchewan road bans period, which will give the Company some production history, to better understand the future decline profile that the well may exhibit. This production information will allow for better predictions on the performance of future horizontal wells. Based on industry data, management believes that a horizontal well drilled into a similar quality reservoir could produce up to five times that of a vertical well.

The 7-27 well qualifies for a 50,000 bbl royalty incentive volume, and will only pay a 2.5% Crown royalty, during this period. The low royalties and the lighter quality crude oil, combine to give favorable cash netbacks for the well's production.

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Company are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

Contact Information

  • Atikwa Resources Inc.
    Sean Kehoe
    President and CEO
    (403) 233-6073