Granite Oil Corp. Announces Bakken Well Test Results

CALGARY, ALBERTA--(Marketwired - June 1, 2015) - Not for distribution to U.S. news wire services or dissemination in the United States

GRANITE OIL CORP. ("Granite" or the "Company") (TSX:GXO)(OTCQX:GXOCF) is pleased to announce the test results of its southern Alberta Bakken horizontal well at 3-29-3-16W4, being the first well it has drilled since the completion of the Arrangement on May 15, 2015. The 2,280 meter lateral section was completed with a 30 stage, nitrified water fracture stimulation using a cemented sliding sleeve completion. At the end of a five day production test, the well continued to flow at approximately 760 bbls/d of 30° API oil and 230 Mscf/d of natural gas at a flowing wellhead pressure of 65 psi.

In keeping with Granite's focus on maximizing recoveries, the lateral section of the well was drilled near the bottom of the 10 meter (33 foot) reservoir unit optimizing drainage for Granite's expanding gas reinjection EOR program. Additionally, the Company continues to reduce costs and improve capital efficiencies, with all-in well costs totaling $2.4 million, relative to budgeted well costs of $2.8 million. These cost reductions are a result of process improvements, including the adoption of monobore drilling and reduced oilfield services costs.

Reader Advisory

Test Rates. Test rates are not necessarily indicative of long-term performance or of ultimate recovery. Neither a pressure transient analysis nor a well-test interpretation has been carried out and the data should be considered to be preliminary until such analysis or interpretation has been done.

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