Atikwa Resources Inc.

December 07, 2010 07:00 ET

Atikwa Resources Inc. Announces Operations Update

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2010) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK) wishes to announce that it has completed the successful re-entry, flow-testing, and pressure build up analysis of its well at Porcupine Hills. During the flow-test, the well was produced at varying rates, with initial rates of 4.0 to 9.0 million cubic feet per day with associated liquids. During the flow-test the rates decrease as a result of down-hole near wellbore choking. The more detailed analysis of the pressure data, suggests that the well has higher than expected near wellbore formation damage. As a result the Company is investigating horizontal drilling options to drill out of the existing wellbore in order to get away from the formation damage and out into untouched reservoir, with the added benefit of a horizontal well production profile. The existing wellbore has 9-5/8" casing, which could allow up to two horizontal laterals to be drilled from the existing surface location. Such an operation would save significantly on drilling costs and set up a strategic drilling Island to begin developing this exciting New Field Wildcat Discovery.

Preliminary modeling of a horizontal well, based on reservoir parameters seen in the re-entered well, suggests an initial potential production rate of 4.0 to 11 mmcf/day for an open-hole horizontal well. The pressure data did not show any formation boundaries in the region that was investigated, by the test. This information will help to confirm the geological model, which suggests that the formation has significant lateral extent. The Company holds an 87% working interest in the well and seven contiguous sections of land in the area.

In other operations the Company is continuing its efforts in Manitoba, and is in the process of licensing a second light oil Spearfish horizontal well. The location proposed for the new horizontal well at 11-26-01-28 W1 is surrounded by several adjacent horizontal wells. Three horizontal wells in the section just west of the proposed well, are producing at an average rate of over 100 bopd, after five months of production.

Due to the fact that the first Spearfish horizontal well that was drilled has underperformed the Company's expectations, management is now planning to go back and re-fracture the well in order to bring its production more in line with the area average. The cost of the re-fracing operation is anticipated to be approximately $175,000.

The Company's Roncott vertical Bakken well in Saskatchewan continues to perform well. The drilling of this vertical well proved up the potential to drill up to four horizontal locations on the section. The Company fully recognizes the potential on its Roncott lands, but has no immediate plans to drill a new horizontal well as it is still in the process of trying to acquire additional lands or partner with other companies in the area in order to build a more significant land position. 

At Windfall the company is currently in discussions with third parties to begin drilling under a farmout arrangement. The company has a 100% working interest in the lands that are part to the proposed agreement.

Over the last year the Company has purchased, farmed in and drilled to earn an ownership in a portfolio of four oil and gas resource properties. With a view to measuring growth, management is currently preparing an up to date valuation report on all of the Company assets. As part of that report the Company has commissioned a third party reserves evaluation firm to prepare an independent NI 50-101 compliant reserves evaluation of all of its prospects and lands in order to better define the Net Asset Value of the Company's properties. This process is expected to be completed in the next two weeks, at which point the information will be released to the investment community.

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. Statements regarding reserves are also forward‐looking statements, as they reflect estimates as to the expectation that the deposits can be economically exploited in the future. 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