CALGARY, ALBERTA--(Marketwire - Nov. 17, 2010) - Celtic Exploration Ltd. (TSX:CLT) ("Celtic" or the "Company") is pleased to provide an update on exploration activity and operations in west central Alberta.
Celtic began work on an exploration play in 2006 and actively commenced acquiring large land positions in 2009 at Resthaven, Lator and Karr (collectively referred to as the "Resthaven area") in west central Alberta. During 2009, many oil and gas producers were affected by tight credit markets, declining commodity prices and a downturn in the economy leading to recessionary conditions. Given the Company's strong financial position and a significant hedge on oil prices in 2009, Celtic was able to take advantage of a less competitive environment at the Alberta Crown land sales and acquired approximately 37,000 acres (58 sections) of land in the Resthaven area. The Company has continued to take advantage of these favourable conditions and has significantly added to its land position in 2010. As at November 16, 2010, the Company holds a 100% interest in 280,820 acres (438 sections) with Triassic Montney rights in the Resthaven area.
Celtic will use its knowledge and experience from developing the Triassic Montney pools at Kaybob, Alberta and apply it to this exciting new Montney play at Resthaven. The Company commenced drilling a horizontal well at Resthaven located at 02-07-061-02W6 in November 2009. The well reached a measured depth of 4,769 metres and was completed in the first quarter of 2010 with an 11-stage slick water fracture technique. After six days on test, the well was producing natural gas at a rate of 10.2 MMCF per day at a flowing casing wellhead pressure of 19.8 MPa. The gas is expected to have associated liquids of approximately 50 barrels per MMCF with approximately 70% being condensate/pentane. This well is currently on-stream as it was put on production in early November 2010. The Company has followed up with the deepening of a vertical well in the area and has reached total depth on another vertical test in the area and furthermore, has commenced the drilling of an additional horizontal well also at Resthaven.
Celtic is excited about this new resource play in the Triassic Montney formation and expects over 50% of its planned capital expenditures in 2011 to be in the Resthaven area.
Advisory Regarding Forward-Looking Statements
This document contains expectations, beliefs, plans, goals, objectives, assumptions, information and statements about future events, conditions, results of operations or performance that constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws. Undue reliance should not be placed on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements. We caution that the foregoing list of risks and uncertainties is not exhaustive. Events or circumstances could cause actual dates to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. The forward-looking statements contained in this document are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.
All dollar amounts are referenced in Canadian dollars, except when noted otherwise. Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel and sulphur volumes have been converted to oil equivalence at 0.6 long tons per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, pentane, propane, butane and ethane. References to gas in this discussion include natural gas and sulphur.
The Company is authorized to issue an unlimited number of common shares and an unlimited number of preferred shares. The Company's shareholders approved a two-for-one stock split effective May 6, 2010. All references to common shares in this press release are on a post stock split basis. As at November 16, 2010, there were 90.3 million common shares outstanding. There are no preferred shares outstanding.
As at November 16, 2010, directors, employees and certain consultants have been granted options to purchase 7.3 million common shares of the Company at an average exercise price of $8.07 per share.
The Company's common shares trade on the TSX under the symbol "CLT".