Statesman Resources Ltd.
TSX VENTURE : SRR

November 25, 2009 14:50 ET

Open-Flow Test Shows 1150mcf/d from Statesman's First Appraisal Well in Kansas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 25, 2009) - Statesman Resources Ltd. (TSX VENTURE:SRR) filed today with the Kansas Conservation Commission the results of the open-flow gas tests conducted on the Chase formation in the Statesman-Eberhardt #1-24 gas well in the Reichel Field, Rush County, Kansas. The four-point, open-flow test resulted (after a 72-hour shut-in period) in a flow-rate of 1625mcf/day and the immediately following one-point, open-flow test resulted (after a 24-hour shut-in period) in 1150mcf/day. Significantly, the pressure difference between the two shut-in periods was only approximately 10%, which indicates strong productivity of the Chase formation.

The intention is to produce gas from the Chase formation at flow-rates between 350 and 400 mcf/day for several months. This will provide data to evaluate deliverability, decline rates, and potential for formation water. Following such production evaluation, the field operator, Bear Petroleum Inc., will open the lower Lansing-Kansas City formation, which exhibited gas flows during completion of the well.

The gas analysis shows that the Chase formation is producing approximately 750Btu methane and 1.8% helium. The methane and helium, as well as any solids, are sold to IACX Energy LLC ("IACX"), which processes and separates the various components at its Otis Plant, adjacent to the Reichel Field.

As a result of rig availability and other considerations, Statesman plans to drill one more appraisal well before year-end and another one or two early in the New Year, weather permitting. The Statesman-Foos #1-22 well will, in December, further test the Chase formation and its target depth will be 2300 feet. Subject to positive evaluations from the production testing of the Eberhardt well and from the planned appraisal wells, Statesman will implement a development plan encompassing 20 to as many as 40 new wells to in-fill and extend the Reichel Gas Field.

Certain statements made in this presentation involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. Certain statements relating to Statesman Resources' business and operations, including statements regarding production and sale of natural gas from the Eberhardt #1-24 well and future development plans, are forward-looking statements and are based on management's expectations, estimates and projections. Such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements and such forward-looking statements should not be unduly relied upon. Statesman Resources makes no commitment, and disclaims any duty, to update or revise any of these statements, except as may be required by law. This press release is for information purposes only and is not intended as a solicitation or offering of securities in any jurisdiction.

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 release.

Contact Information

  • Statesman Resources Ltd.
    Sasha A. Karpov
    President/CEO
    303 204 7948