Great Plains Exploration Inc.

Great Plains Exploration Inc.

August 10, 2009 09:00 ET

Great Plains Confirms Light Oil Success at Crossfire

CALGARY, ALBERTA--(Marketwire - Aug. 10, 2009) - Great Plains Exploration Inc. (TSX:GPX) (Great Plains) is pleased to announce that it has completed and tested its third exploration success on the Crossfire project at Pembina. The well located at 14-33-50-5 W5M was drilled and cased in March of 2009 as a potential Nisku oil well with approximately 12 metre of hydrocarbon column and average porosity of 15%. During recent testing the well produced at an average rate of 1,610 BOE/d over the duration of the two test periods including initial well bore cleanup. Flow rates increased throughout the entire test with a final rate of 2,023 BOP/d of 34 degree API oil plus 1.2 MMcf/d of associated gas for a total of 2,222 BOE/d. This rate was achieved on a restricted basis through a 5/8ths choke and no pressure depletion was observed during the test period.

Onsite calculation of H2S content ranged from 4.6% to a high of 6%. These relatively moderate concentrations of sour gas combined with a low gas/oil ratio may expedite the pipeline licensing process required to tie-in this new production capacity. Earlier internal estimates of oil in place were 2.3 million barrels for the 14-33 pool with no reserves or value previously assigned by the Company's independent reserve evaluators. Great Plains holds a 40% working interest in the well which is not subject to any reversionary rights or future reduction in ownership.

With this latest test data in hand, Great Plains now has approximately 1,200 to 1,600 barrels equivalent per day of primarily light oil capacity available to add to its existing production base from four different wells in the Pembina area. Various options are being pursued to bring this production on stream through the balance of 2009 and 2010. Additionally, the Company has approximately 350 BOE/d of tested production in Northeast British Columbia which is expected to come on stream late in 2009 and early 2010. Great Plains is now capable of more than doubling its current production base for a relatively moderate capital cost and with no new drilling required.

Investors should note that BOEs may be misleading, particularly if used in isolation. A BOE conversion rate of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Advisory Regarding Forward Looking Statements

This press release contains forward-looking statements which include, but are not limited to: operations plans and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, such as loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements.

The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Contact Information

  • Great Plains Exploration Inc.
    Stephen P. Gibson
    President & CEO
    (403) 262-9620
    Great Plains Exploration Inc.
    Sean Bovingdon
    Vice-President Finance & CFO
    (403) 262-9620
    (403) 262-9622 (FAX)