Atikwa Resources Inc.
TSX VENTURE : ATK

Atikwa Resources Inc.

July 22, 2011 12:18 ET

Atikwa Spuds Well in Roncott Bakken Play

CALGARY, ALBERTA--(Marketwire - July 22, 2011) - Atikwa Resources Inc. ("Atikwa" or the "Company") (TSX VENTURE:ATK). is pleased to report that it has spudded its first well in the recently announced Roncott development drilling program. It is anticipated that this earning well will take roughly 8 days to drill to 1850m; the target is light sweet oil from the Middle Bakken Zone. The completion operations will be scheduled shortly after rig release and production is anticipated near the end of August.

The Roncott field in Saskatchewan was discovered in 1956 as a Bakken formation field that was capable of producing economic, 40 degree API oil, from conventional vertical wells. Government data estimates that there is 10 million barrels of oil in place, however over the life of the pool industry has only recovered about 8% of that or 800,000 barrels of oil from essentially four vertical wells. It is that remaining 9.2 million barrels that the Company plans to target and potentially expand with an initial vertical earning well and delineation project followed by a horizontal development drilling program.

Vertical wells in this pool qualify for a 50,000 bbl royalty incentive volume and horizontal wells qualify for 100,000 bbl under the same incentive; consequently the Company will only pay a 2.5% Crown royalty, during this period. The low royalties and the lighter quality crude oil, combine to give favorable cash netbacks for production.

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 Corporation
    Sean Kehoe
    President and CEO
    (403) 233-6073