Acadian Energy Inc.
TSX VENTURE : ACX

April 07, 2011 14:43 ET

Acadian Energy Shale Oil Exploration Strategy Expanded- New Albany Shale Compares to Canadian Bakken

TORONTO, ONTARIO--(Marketwire - April 7, 2011) - Acadian Energy Inc. (TSX VENTURE:ACX) announced its New Albany Shale Oil Exploration Strategy. The New Albany Oil Shale compares well geo-chemically to the Canadian Bakken Shale. Acadian is progressing in its oil exploration and production plans for three test wells in the New Albany Shale. To date, the industry has produced about 4 billion barrels of oil from the Illinois Basin, in which the New Albany Shale resides. This is out of a total original oil-in-place of approximately 14.2 billion barrels. Acadian has already farmed-out exploration for shallow oil (non Shale Oil) to Riverside Exploration LLC, of Traverse City MI, on 10,000 acres of its leases in which oil already presented itself in one of its gas wells. (Sources: Oil & Gas Journal Sep 6, 2010, Illinois State Geological Survey, 2006 & Midwest Geological Sequestration Consortium, 2010)

The oil strategy is in addition to the US$32.4 million (31/03/2010) Gas Reserve already reported, from Acadian's 15,100 gross acres under lease, in the recent Filing Statement available on www.sedar.com.

At an estimated average total generation potential of oil at 1,616 barrels of oil/acre foot, (Source Dan Jarvie, Worldwide Geochemistry), and an estimated average total generation potential of natural gas at 9,694 mcf/af, the New Albany Shale Basin ranks as one of the top shale basins for oil and gas. With a shale thickness of 100 to 350 feet, the comparison to the Big Five shales is favourable. (Source: Dan Jarvie, Worldwide Geochemistry; Oklahoma Gas Shales Oct. 22, 2008). An estimated 300 plus tcf of gas is forecast in the Basin. (Source: 2007 New Albany Shale Update, Discovery Group, Bob Cluff)

Acadian estimates the sweet spot of the oil fairway is 6,000 square miles. For the oil, relatively low cost horizontal drilling costs (less than$2.5 million drilling and completion costs) is expected to produce 300,000 potential barrels of oil recoverable on 160 acre well spacing. The area to date is virtually unexplored using modern seismic and other technology. The oil is of good quality with API gravity of between 32 and 38.5. Modern horizontal drilling and extraction/production techniques, not yet widely utilized, will be used to target the oil resources.

Acadian is having a numerical reservoir simulation model prepared to produce a projected type curve. This is Phase 1 of three phases. 

John McDevitt, CEO of Acadian commented, "The Basin's favourably geo-chemical comparison to the Canadian Bakken, along with modern extraction technology, and our team's former success in Shale and Coal Bed Methane Drilling, suggests that the Shale Oil story for Acadian will be of increasing significance, enhancing its strong base of gas resources". 

About Acadian:

Acadian is a junior exploration and production company which is focused on the exploration and development of shale oil and natural gas in the Illinois Basin. The Company continues to expand the existing NI 53-101 compliant primary Gas Reserve value of US$32.4 million, (31/03/10) based on its existing 15,100 gross acres under lease. Not included in its reserve is any value from a recently signed farm-out agreement for the exploration and development of 10,000 of those acres for shallow and limestone reef oil. Acadian has 6,044,905 shares basic outstanding, (8,309,518 fully diluted) and 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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