Atikwa Resources Inc.
TSX VENTURE : ATK

Atikwa Resources Inc.

September 20, 2011 07:00 ET

Atikwa Announces Operational Update in Manitoba

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2011) - Atikwa Resources Inc. (TSX VENTURE:ATK) ("Atikwa" or the "Company) is pleased to report that it has completed the production testing of its 14-13 horizontal well targeting Spearfish light oil in the Pierson area of Manitoba. Initial production averaged 188 barrels per day of fluid with steadily increasing oil cuts as the water based fracturing fluid was recovered. The oil cut is currently 60% which represents about 113 barrels of oil per day. The oil cut is expected to continue to increase as the water based fracing fluid is recovered from the formation and replaced by oil. The well is showing strong inflow characteristics and management believes that this well should equal or exceed the performance of its 11-26 well. The 11-26 well was put on production March 11, 2011 with initial production of approximately 150 barrels of oil per day. Over the last six months the 11-26 well has stabilized to approximately 100 barrels per day. The 11-26 well produced in excess of 3,000 barrels of oil over the last 30 days.

In a separate operation the Company also refraced its previously drilled 11-05 well. This was the first Spearfish well drilled by the Company. The well underperformed as a result of the use of earlier stage fracing fluids and technologies. Using advancements in frac design and fluid systems the 11-05 well is now performing closer to the Company's original expectations. The 11-05 well is currently producing about 125 barrels of fluid a day with an oil cut of approximately 25%, which is equivalent to approximately 31 barrels of oil per day. As a result of the two separate fracing operations the 11-05 well is expected to show lower initial oil cuts until the extra volume of water based fracing fluid is recovered and replaced by oil.

The 11-26, 11-05 and 14-13 wells are the first three wells of a multi-well drilling program that the Company has planned for the Pierson area of Manitoba through to the spring of 2012. The Company's total net production from Manitoba is now approximately 200 barrels per day. The Company currently has an inventory of 20 net horizontal drilling locations in the area based on a relatively conservative drilling density of three wells per quarter section. The Company is in the process of licensing seven new wells in the area and is currently co-coordinating services in preparation for drilling.

This news release contains forward‐looking statements relating to the Company's plans and other aspects of the Company's anticipated future operations, strategies, financial and operating results and business opportunities. Forward‐looking statements typically use words such as "anticipate", "believe", "project", "expect", "plan", "intent" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, or consists of statements regarding estimates of future production, operating costs or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Although the Company believes that the expectations represented in such forward‐looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements and you should not unduly rely on forward‐looking statements. The forward‐looking statements contained in this news release are made as the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither 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.

Contact Information

  • Atikwa Resources Inc.
    Sean Kehoe
    President and CEO
    (403) 233-6073