Argosy Energy Inc.
TSX : GSY

Argosy Energy Inc.

April 10, 2012 09:40 ET

Argosy Energy Inc Provides Operational Update

CALGARY, ALBERTA--(Marketwire - April 10, 2012) - ARGOSY ENERGY INC. ("Argosy") (TSX:GSY) is pleased to provide the following operational update with respect to its operations to date in the emerging Exshaw/Bakken/Big Valley play in Southern Alberta.

Argosy's Southern Alberta Bakken prospect continues to dominate its operational activities. This press release is an operational update to Argosy's recently drilled horizontal well discussed in our February 22, 2012 press release.

After the flow period discussed in that press release the well was shut in for a pressure buildup. After the necessary shut in time, the well pressure reflects that the well is approximately 40% over pressured and was in excess of 34mPa. The well has since been placed back on production for 8 days utilizing a bottom hole pump assembly. The well is presently making 250-280 barrels of fluid per day at a 50% oil cut with oil rates of 125-140 barrels per day of 36 degree API reservoir oil. Load fluid to recover is still in excess of 10,000 bbls of frac fluid and the well continues to clean up. A competitor's offset well had initial reported production that indicated load fluid cuts of 34%. These cuts were seen after a lengthy flow cleanup period prior to being put on production. This load fluid cut was further reduced over time to 6% after four months of further reported production. As with the offset well, Argosy believes that as the load fluid on this well continues to drop and the well cleans up the oil production will increase.

Argosy is a junior oil and gas company focused on the exploration for and development of oil and natural gas in western Canada.

Disclaimer

Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that this Company expects or anticipates may or will occur in the future, are forward-looking information. This news release contains forward-looking information on management expectations regarding future plans and intentions including future production, future drilling, project start-ups and future capital spending. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Actual results or estimated results could differ materially due to changes in project schedules, operating performance, demand for oil and gas, commercial negotiations or other technical and economic factors or revisions. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include but are not limited to changes in general economic and market conditions and those described in the Corporation's public filings on SEDAR. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances. Any forward-looking information contained herein is expressly qualified by this statement.

Contact Information