Atikwa Resources Inc.
TSX VENTURE : ATK

Atikwa Resources Inc.

December 07, 2011 08:00 ET

Atikwa Brings on More Barrels in Manitoba

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2011) - Atikwa Resources Inc. (TSX VENTURE:ATK) ("Atikwa" or the "Company") is pleased to report that it has brought on production its fourth and fifth horizontal wells targeting Spearfish light oil in the Pierson area of Manitoba. The recently completed 6-24 and 15-30 wells are the first two of a three well program that the Company drilled throughout October and early November. The third well is expected to be fraced within the next week.

The 6-24 well is currently producing at over 200 barrels of fluid per day with an oil cut of approximately 40%. The second well at 15-30, which was put on production a few days after the 6-24 well, is also producing at over 200 barrels of fluid per day with a 20% oil cut. The Company expects that the oil cut in both wells will continue to increase over the next week or so as the water based fracing fluid injected into the formation during the fracing operation is replaced with oil. The wells are showing strong inflow characteristics and management believes that these wells should equal or exceed the performance of its previous wells in the area. The first well drilled in the Pierson area this year was the 11-26 well, which was put on production March 11, 2011 with an initial production rate of approximately 150 barrels of oil per day. Over the first six months, the 11-26 well stabilized to a production rate of approximately 100 barrels per day.

The Company has licensed two additional wells in the area; the drilling of the first of these wells is scheduled to begin on Friday December 9th with the second well anticipated to be drilled at some time before the end of the year. With the addition of these two wells the Company will have drilled a total of 8 Spearfish wells in the area, 5.3 net and expects to exit this round of drilling with oil production between 400 to 500 barrels per day net to the Company. Assuming a drilling density of four wells per quarter section, the Company has 21 (net) additional locations in the area for future infill drilling.

This news release contains forward‐looking statements relating to the Company's plans, proposed exploration and development activities, our drilling prospect inventory 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 drilling and completion activities, 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