Acadian Energy Inc.

November 10, 2011 14:03 ET

Acadian Energy New Albany Shale Greenfield Oil Simulation Completed - Positive Results Obtained

TORONTO, ONTARIO--(Marketwire - Nov. 10, 2011) - Acadian Energy (TSX VENTURE:ACX) announces results of an engineering – geologic evaluation of the New Albany Shale within the Illinois Basin of Illinois and Indiana. Fekete Associates Inc. located in Calgary, Canada undertook this evaluation. The established project objectives were as follows;

First, analyze gas production data from existing producing wells to obtain a reservoir description and generate a type-well production forecast.

Second, compare the type-well forecast against actual production histories to ensure the relative consistency between the type-well forecast and actual well performance.

Third, use the model to forecast oil and/or gas production and estimate:

-Original-Oil-in-Place (OOIP)

-Original-Gas-in-Place (OGIP)

-Estimated Ultimate Recovery (EUR)

-1,000 Barrels (Mbbl)

Fourth, perform sensitivity analyses to illustrate the relative importance of different well/reservoir/completion parameters on a 30-year cumulative oil production forecast.

Two well scenarios were modeled for a 160 acre drainage area with an OOIP of 2,470 Mbbl; a vertical well and a horizontal well with 5000 ft horizontal length. Sensitivity analyses were performed on the following reservoir parameters to determine their impact on the estimated ultimate oil recovery (EUR); porosity, water saturation, vertical and horizontal permeability and reservoir pressure.

Estimated oil recovery for vertical and horizontal wells in two different permeability reservoirs are summarized below:

Low permeability scenario – (0.0026 horizontal permeability; 0.0015 vertical permeability)

  • Frac Stimulated Vertical Well 7 Mbbl
  • Horizontal Well – no stimulation 20 Mbbl
  • Frac Stimulated Horizontal Well 70 Mbbl

Higher permeability scenario – (0.034 horizontal permeability; 0.015 vertical permeability)

  • Frac Stimulated Vertical Well 35 Mbbl
  • Horizontal Well – no stimulation 125 Mbbl
  • Frac Stimulated Horizontal Well 200 Mbbl

Low permeability reservoirs, drilled vertically and frac-stimulated calculated an EUR of 7 Mbbl. The low permeability horizontal multi-frac stimulated well produced an EUR of 70 Mbbl.

In comparison, higher permeable shale reservoirs with a vertical completion would produce an EUR of 35 Mbbl. A horizontal multi-frac well's estimated EUR was 200 Mbbl.

Geochemical data suggests that in an area of 640 acres, an OOIP of 9,880 Mbbl would be calculated. Thus 4 horizontal multi-frac stimulated wells could recover 800 Mbbl and a minor amount of natural gas. The results compare favorably with other North American oil resource plays.

Acadian is currently in the process of interviewing joint-venture partners and investors.

About Acadian:

Acadian is a junior exploration and production company which is focused on the exploration and development of New Albany shale oil and natural gas in the Illinois Basin. The Company continues exploration development of the oil potential of the New Albany Shale. Acadian trades on the TSX Venture Exchange under the symbol ACX.

This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. 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 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.

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