Atikwa Resources Inc.

June 14, 2010 13:34 ET

Atikwa Announces Operational Update

CALGARY, ALBERTA--(Marketwire - June 14, 2010) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) is pleased to announce the following operational update. In summary the Company has now drilled five wells with 100% casing success. Two of the wells are on production with two horizontal wells awaiting completion and testing. The fifth well is currently being evaluated for in-flow in the main targeted zone. After being on hold operationally due to spring road bans, the Company resumed drilling operations on the 19th of May.

Saskatchewan. The Roncott vertical well, after some modifications to the pump jack, is producing at more than 20 barrels per day of 40 degree API oil. If the well continues to produce at stabilized rates in this range the Company's lands should be able to support an attractive horizontal development program. Moving to the 37 section Burn Lake exploration blocks to the north of the Roncott pool, the Company's first well was cased and perforated in the Bakken formation but not fraced. The Company is monitoring the inflow of fluids and casing pressure as part of our continuing evaluation of the reservoir. In conjunction with the drilling of the well, the Company shot additional seismic in order to assist in the selection of a second drilling location on the exploration block. A decision has not been made at this time with regard to the location of the next well.

Manitoba. The drilling and completion of our first horizontal well in Manitoba was delayed due to road bans and subsequent wet weather. As a result we were unable to move the drilling rig off the hole in order to get a completions rig in to complete the operation and get the well on production. The Company encountered good hydrocarbon shows throughout approximately 75% of the horizontal leg of the well bore during drilling. The drilling rig was moved off the hole on the 18th of May and spudded at a second location in Manitoba on the 19th of May. As soon as the well site dries up, the Company plans to move a completion rig in to finish the testing of the well and prepare it for production. The second horizontal well, targeting the Spearfish formation, was completed on the 28th of May and is currently waiting in line for a frac, which is expected to take place next week. Western Canada has had a great deal of rain over the last Month, which has delayed operations throughout the industry.

Alberta. At Windfall the Company was successful at a recent Crown land sale and now has a significant land holding of 90% working interest in eight sections. The targeted zone is a thick, liquids rich, clastic resource play, which management believes could potentially provide significant reserves and production to the Company. The Company is currently exploring options to drill a well in the area this fall. The Company's other opportunity in Alberta is a highly prospective liquids rich natural gas re-entry candidate in the foothills, which is scheduled for late July or early August. Management will be meeting with representatives of the local municipal district on June 15th to discuss the proposed pipeline in order to get a road use agreement as one of the last steps to be approved to get a well license for the re-entry of the well. The Company holds an 87% working interest in this play with an estimated cost of approximately $1.3 million for the re-entry.

Of the approximately $8,500,000.00 in total proceeds raised from the equity and flow-through financings in December 2009 and January 2010 the Company has expended approximately $4,500,000 on land and drilling, which leaves the Company with approximately $4,000,000 to complete the program. CEO Sean Kehoe stated, "The objective of the Company's original land acquisition and drilling program, at the time of the capital raise, was to complete the purchase of targeted lands and then drill and test all of our resource plays in order to evaluate if they are capable of supporting a full development drilling program. The Company is currently about half way through that objective; Saskatchewan looks like a solid Bakken play, Manitoba is on the cusp of breaking out into another significant new light oil resource opportunity and we have secured two substantial high impact liquids rich natural gas resource plays. We are very excited about continuing to execute our business plan and what the future holds for Atikwa."

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

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