TORONTO, ONTARIO--(Marketwired - Feb. 21, 2017) - Claren Energy Corp. ("Claren" or the "Company") (TSX VENTURE:CEN) is pleased to provide a corporate update to shareholders. Claren has completed its wellsite operations on the Bobocu 310 side-track well, onshore Romania.
The Company completed cased-hole well tests on the Lobe G and Corcova sandstone reservoirs and also tested Lobe H above Lobe G. The cased-hole wireline logging program provided further insight into selecting prospective reservoir units to be tested, and showed gas saturations between 30% to 40%. Unfortunately, upon testing, none of the perforated zones flowed commercial quantities of gas, instead producing gas saturated water and sand. The tests did however confirm the validity of the exploration model which is primarily based on the detection of gas on seismic data as a DHI ("Direct Hydrocarbon Indicator"). As predicted by the seismic data, gas sands were found at the anticipated depth, but gas saturations were below the Company's expectations.
This is the completion of Phase I of the proposed work program, in which Phase II includes the drilling of a second well, the Blueray prospect. Although the well tests did not indicate commercial gas quantities at the drilled location this will not change our positive assessment of the Bobocu gas field. Within the Bobocu gas field, "Well 70" historically produced 2 Bcf of gas, and "Well 73" tested 2.5 MMcf per day of gas from the Blueray prospect.
"We will study the results of this well and update our reservoir model with respect to the sand and water mobility characteristics specific to this field. Our seismic data will be re-calibrated for reservoirs with variable gas saturation. In addition, Claren plans to re-enter 2 existing wells that produced from the Blueray prospect and run cased-hole logs to confirm the presence of gas "behind-pipe". This will largely de-risk the drilling of the much larger Blueray prospect which will allow us to earn an additional 40% of the concession," stated Henry Aldorf, Claren's Chairman and CEO.
Claren is continuing to build a diverse portfolio of low-cost, high-margin international oil and gas assets, and is aggressively pursuing the acquisition of near-term producing assets. The Company is also engaging potential partners to share the financial and technical risk on PEL 112 and PEL 444 in the Cooper Eromanga Basin, in South Australia.
About Claren Energy Corp.
Claren Energy Corp. is an oil and gas company that has the right to acquire up to an eighty percent (80%) participating interest in the Bobocu License, onshore Romania. Claren also has a 51.49% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, including a 1.47% gross overriding royalty interest on the PELs, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "CEN".
This news release contains forward-looking information relating to Claren's intentions to conduct the drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks. Although the present drill program has encountered the presence of gas, it does not necessary indicate that Claren will be successful in its drilling programs. Findings by other oil and gas issuers does not necessarily indicate that Claren will be successful in making such findings in Australia and Romania. In making such forward- looking statements, Claren has relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to Claren in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While Claren may elect to, Claren is under no obligation and does not undertake to update this information at any particular time, except as required by applicable securities law. 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.