CALGARY, AB--(Marketwired - January 11, 2017) - Front Range Resources Ltd. ("Front Range" or the "Company") (TSX VENTURE: FRK) is providing an update regarding its ongoing drilling program at Pepper, Alberta. Both wells of the current program are located within the Company's 33-section Pepper land block where Front Range is operator and has a 100% working interest. The West Pepper Upper Montney well represents the southernmost horizontal Montney discovery drilled to date (42 kilometres from the nearest horizontal Montney producer) and validates the Company's view of the presence of a Southern Montney Trend. A map and cross-section covering the Pepper acreage have been provided as Figures 1 & 2 to accompany this release.
WEST PEPPER EXPLORATION
The Company reports that its first horizontal Montney exploration well at West Pepper, Alberta has been successfully completed and flow tested. The 03-26-52-23W5 exploration well (the "3-26 Well") was completed in the Upper Montney interval and represents a new Montney discovery for the Company.
The 3-26 Well was drilled to a total measured depth of 5,960 metres (3,689 metres TVD) with a 1,930 metre horizontal leg in the Upper Montney. The 3-26 Well was completed with a 31-stage slick-water frac with an average of approximately 38 tonnes of proppant placed per stage. A total of approximately 18,800 m3 of slick-water was pumped downhole, of which approximately 3,000 m3 has been recovered to date.
Over the last 48 hours of the 278 hour flow test period, the 3-26 Well flowed at an average rate of approximately 5 mmscf/d of natural gas (0.04% H2S) at a flowing casing pressure of 3,778 kPa (548 psi). No natural gas liquids were recovered during the test. To date, load fluid volumes representing 16% of total load fluid have been recovered. Initial results from an injection fall-off test indicate a reservoir pressure of up to 48 MPa. Drilling and completion operations were on time and on budget.
The 3-26 Well is now shut in. The Company is currently evaluating options for an in-line extended well test program whereby revenue can be realized from test volumes while also employing industry best practices for reservoir management and well clean-up. Front Range has surveyed and applied for permits covering two separate pipeline options.
EAST PEPPER DEVELOPMENT
Drilling of the Company's horizontal development well 6-28-52-22W5 (the "6-28 Well") at East Pepper, Alberta is ongoing. The 6-28 Well is located 6.8 kilometres east of the 3-26 Well and is targeting the Basal Montney interval that was previously tested at a rate of 550 mscf/d of natural gas with 29 barrels/mmscf of free condensate and up to an additional 30 barrels/mmscf of natural gas liquids (recoverable through shallow cut natural gas processing) at a flowing casing pressure of 293 kPa (47 psi). This test rate was obtained from a single 60-tonne frac in the vertical wellbore and represents the last 24 hours of the 141.5 hour flow test period.
Based on the different pressures and reservoir gas compositions encountered in the vertical well at East Pepper and the 3-26 Well reported above, the Company's current interpretation is that the Upper and Basal Montney are indeed separate hydrocarbon accumulations/systems (see Figure 2).
The 6-28 Well has been kicked off from the vertical wellbore and is drilling ahead at a depth of ~3,560 metres measured depth (~3,521 metres TVD). Completion and testing operations of the horizontal leg in the 6-28 Well are scheduled to begin in mid-February 2017, with flow test results to follow.
Further information relating to the Company is also available on its website at www.frrl.ca.
ADVISORY ON CAUTIONARY AND FORWARD-LOOKING STATEMENTS:
The Company cautions that flow test results are not necessarily indicative of long-term performance or of ultimate recovery.
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking statements") within the meaning of applicable securities laws. In particular and without limitation, this news release contains forward-looking statements concerning: the tie-in of the 3-26 Well and the timing of the completion and testing of the 6-28 Well.
Forward-looking statements are based on a number of material factors, expectations or assumptions of the Company which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company 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, including but not limited to: failure to obtain, in a timely manner, regulatory, stock exchange and other required approvals in connection with the Financings. Additional information regarding some of these risks, expectations, assumptions and other factors may be found in the Company's Annual Information Form and Management's Discussion and Analysis prepared for the year ended December 31, 2015. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
NEITHER 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 NEWS RELEASE.
Figures 1 & 2 - Source: Accumap
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