Turnkey E&P Inc.

Turnkey E&P Inc.

December 26, 2007 20:02 ET

Turnkey E&P Inc.'s P. Cox #2 Well in Clear Creek Field Flows Oil From the "A" Zone

CALGARY, ALBERTA--(Marketwire - Dec. 26, 2007) - Turnkey E&P Inc. ("Turnkey") (TSX:TKY), today reported that its P. Cox #2 well in the Clear Creek Field flow tested oil at rates of approximately 212 barrels of oil per day from the A zone.

The P. Cox #2 well is dual-string completed with the long string in the B zone with perforations from 9,056' to 9,076' and the short string in the A zone with perforations from 8,863' to 8,873'. The short string is equipped with gas lift valves; however, the A zone started to flow on its own after unloading completion fluid out of the tubing with gas lift. During the five days of production testing, the A zone averaged 212 barrels of oil per day from a total rate of 429 barrels of fluid per day or a 49.4% oil-cut on a variable choke ranging from 17/64" to 22/64" with a flowing tubing pressure from 380 psig to 150 psig. The well is also making small amounts of gas at approximately 50 thousand cubic feet per day.

As previously announced, the B zone was tested at a rate of 16 barrels of oil per day with 384 barrels of water per day.

"We ran the short string fitted with gas lift valves as we didn't expect the A zone to flow. This is the reservoir which had seen a cumulative production of approximately 12.3 million barrels of oil under a field-wide reservoir unit. The P. Cox #2 well's excellent production characteristics confirm our belief that the A zone has additional potential remaining, not only from the secondary and tertiary recovery applications but also from the primary recovery via infill drilling in unswept areas of the reservoir," said Bob Tessari, Turnkey's President and CEO. "This latest test significantly increases our previous estimates of oil remaining to be recovered from the A zone."

Turnkey E&P Inc. is a drilling and completions contractor and an independent oil and gas company that is focusing its oil and natural gas drilling and exploitation and production activities in the continental United States using Casing Drilling® technology. Casing Drilling® is a registered trademark of Tesco Corporation. Additional information about Turnkey can be found at its website: www.turnkeyep.com.

This release and the Company's website referenced in this release contain forward-looking statements including expectations of future production and components of cash flow and earnings. Investors are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Turnkey. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to; operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks including, without limitation, blowouts and spills, and the uncertainty of estimates and projections of production, costs and expenses. The risks outlined above should not be construed as exhaustive. Investors are cautioned not to place undue reliance on any forward-looking information. Turnkey undertakes no obligation to update or revise any forward-looking statements except as required under applicable securities laws.

Contact Information

  • Turnkey E&P Inc.
    R. M. (Bob) Tessari
    President and Chief Executive Officer
    (281) 248-8822
    Website: www.turnkeyep.com