Great Plains Exploration Inc.
TSX : GPX

Great Plains Exploration Inc.

April 08, 2010 09:00 ET

Great Plains Completes Successful Cardium Test

CALGARY, ALBERTA--(Marketwire - April 8, 2010) - 

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Great Plains Exploration Inc. (TSX:GPX) (Great Plains) is pleased to announce the test results of its first Cardium oil well at 13-07-50-05 W5 in Pembina. Following completion, testing took place over a five-day period, during which time the well was flowed and subsequently swabbed for a total of 68.4 hours at an average rate of 610 BOPD. At the end of the test period, the well swabbed at a rate of 417 barrels per day of new 38 degree API oil, with associated gas of 110 Mcf per day. No formation water was produced. Great Plains and its partner, Sifton Energy Inc., are now equipping the well for commercial operation, with first production scheduled for mid-April 2010. Great Plains owns an undivided 50% working interest in this well.

Based on these positive results from the 13-7 well, Great Plains and Sifton acquired additional Cardium rights in adjoining sections in Pembina at the Provincial land sale on April 7, 2010. In total, the Company has now assembled 5,896 net acres of Cardium rights on the same emerging trend at Pembina, with an average working interest of 60%. Great Plains expects to recommence its Cardium drilling program in June 2010 and now has an inventory of 15 to 23 horizontal wells which will use multi-stage fracture stimulation technology to maximize recovery of high netback crude oil. 

Investors should note that BOEs may be misleading, particularly if used in isolation. A BOE conversion rate of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. 

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: drilling plans, production plans, plans for future development of Cardium at Pembina, quality of Cardium oil, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. The forward-looking statements contained herein reflect management's current view and are based on certain assumptions including timing and amount of capital expenditures, production of new and existing wells, performance characteristics of oil properties, the continued availability of capital, land and skilled personnel and the ability to obtain equipment in a timely matter. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, such as loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, regulatory changes, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. Readers are also cautioned that the list of factors is not exhaustive.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Contact Information

  • Great Plains Exploration Inc.
    Stephen P. Gibson
    President & CEO
    (403) 262-9620
    (403) 262-9622 (FAX)
    or
    Great Plains Exploration Inc.
    Sean Bovingdon
    Vice-President Finance & CFO
    (403) 262-9620
    (403) 262-9622 (FAX)
    info@gpexploration.ca
    www.greatplainsexp.com