CALGARY, ALBERTA--(Marketwired - April 15, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces the completion of the production testing operation performed on the Cvo.x-2 exploration well on the Covunco Norte Sur Block, Neuquén Province (the "Block"). The Company is pleased to provide the following up date:
- Upon the Cvo.x-2 well being completed and the hydraulic fracture stimulation at the planned depths (1st stage: perforated at 1,991.5 to 1,974.0 m below ground level; 2nd stage: perforated at 1,946.0 to 1,914.5 m below ground level; and 3rd stage: perforated at 1,672.7 to 1,642.0 m below ground level) a bridge plug was placed in order to isolate the 1st stage from the others as it was not successfully completed with Proppant. The reason why the first stage did not penetrate the Vaca Muerta Formation as expected is being currently analyzed.
- Between 01/16/2014 up to 03/14/2014 the well was extracted from the 2nd and 3rd stages by means of a well testing circuit (Wellhead Chicksan Connections, Manifold, Triphasic Separator, Flowback and Storage Tanks and Burned lines), with a maximum flow back net of oil (37 API) of 24 Bbls/d and a maximum gas flow of 56,000 Scf/d, with a gross flow back of 75% water (frac water). During this period, the wellhead pressure went from 1850 to 220 Psi, flowing through a 3 mm Choke. 67% of the total volume of water injected was recovered in the 2nd and 3rd stages.
- The results obtained from the Production Logging Tool suggest that the fracture was effective at the 2nd stage level, especially in the upper section, where 1,259 m3 of water and 182.6 metric tons of Proppant were placed. This section has an average TOC content of 2.29% and it has limestone interbedded with shale. The role of these limestones and potential natural fractures is not known yet and is a matter for study. The results of these studies will be considered as a basis for future interventions.
- After the Production Logging Tool was removed, the well was shut-in due to the low pressure to wait for its recovery and then re-entry within approximately 3 months when the pressure in wellhead recovers. The pressure will be monitored periodically.
- The Company now is now submitting the required technical information and applications to the Neuquén Province to obtain an extended evaluation period for this Block and expects to obtain the necessary approvals in the next few weeks.
Mr. Claudio Larotonda, Chief Executive Officer, commented:
"The goal of this pilot well was to prove that Covunco Block lies in the oil window for Vaca Muerta and is able to flow hydrocarbons. We succeeded in doing that acquiring significant data. Now, we have to move towards the commercial production which will involve optimizing drilling and completion techniques at a much lower cost."
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.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning commercial production at the Cvo.x-2 well on the Covunco Norte-Sur Block. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache and its expected operations. Although Azabache believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azabache can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Azabache undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.