Marsa Energy Inc.

October 27, 2014 09:46 ET

Marsa Energy Inc. Announces Significant New Gas Discovery and Provides Drilling Update

CALGARY, ALBERTA--(Marketwired - Oct. 27, 2014) - Marsa Energy Inc. ("Marsa" or the "Company") (TSX VENTURE:MEP) is pleased to announce a significant gas discovery at the Company-operated Poyraz West-1ST exploration well. Log and test results indicate approximately 80 metres of net gas pay over a number of stacked reservoirs in a new gas play on the Company's Ortakoy Block. Two other recently drilled wells are to be tested before year-end.

The Poyraz trend was discovered in the second quarter of 2013 with the drilling of the Poyraz-1ST and Poyraz-2 wells. It is located in the AR/MRS/3913 block (the "Ortakoy Block"), in the Thrace Basin on the Gallipoli Peninsula in the northwest or European side of the Republic of Turkey.

Marsa is operator and holds 100 percent working interest in the Ortakoy Block through its wholly owned subsidiary Marsa Turkey BV.

Ortakoy Block Exploration Program

Marsa embarked on a three-well drilling program comprised of wells Poyraz N3-1, Poyraz West-1ST, and Poyraz S4-1 in the third quarter of 2014. All are located within a 15-square-kilometer 3D seismic program that was acquired by Marsa in mid-2013 following the Poyraz-1ST and Poyraz-2 discoveries. Each of the three new wells was designed to test independent structures characterized by direct hydrocarbon indicators. Initial plans were for rig-less completion and testing following drilling. Incremental gas zones, however, necessitated testing at Poyraz West-1 ST with the drilling rig.

Poyraz West-1 ST

Poyraz West-1 spud September 4, 2014 and was drilled directionally to a total measured depth (TMD) of 1,642.5 metres. It is located approximately 600 metres west of Poyraz-2 and the last 290 metres were sidetracked during reaming operations. Open hole and mud logs indicate multiple hydrocarbon-bearing zones within the Miocene and Eocene horizons.

Test 1 - In the first Poyraz West-1ST test, Marsa perforated a total of 21 metres at six shots per foot over seven discrete intervals from 1,548.5 to 1,590.0 metres in the Sogucak Formation, a fractured Eocene limestone. After a cleanup flow and shut-in period, this interval flowed natural gas for a 10-hour period on a 12/64 inch choke at between 1.5 and 1.7 million standard cubic feet (mmscf) per day with small amounts of 64.7º API condensate. Preliminary reservoir analysis indicates substantial flow restriction due to skin damage.

Of significant note is that there were hydrocarbon shows in the intra-Sogucak, equivalent to those tested in the upper portion of the Sogucak limestone, at the point Marsa elected to TD the well for operational reasons. The Company also notes that hydrocarbon shows, comparable to those seen in Poyraz West-1ST, were present in the upper Sogucak of the Poyraz-2 discovery well drilled in the third quarter of 2013. The Company was unable test the Sogucak in Poyraz-2 due to hole conditions during completion operations.

Test 2 - In the second Poyraz West-1ST test, Marsa perforated a total of 34.5 metres at six shots per foot over five discrete intervals from 1,482.5 to 1,533.5 metres in the Ceylan sandstones. The Company was unable to perforate what open hole and mud logs suggested was the best 8-metre interval as downhole equipment used to test the Sogucak carbonate covered this interval. After a cleanup flow and shut-in period, the second test interval flowed natural gas for a 24-hour period on a 16/64 inch choke at 0.5 mmscf per day. Flow and buildup test analysis is underway to determine potential flow restriction due to skin damage.

Test 3 - In the third Poyraz West-1ST test, Marsa perforated a total of 14.5 metres at six shots per foot over two discrete intervals from 1,407.5 to 1,440.0 metres in the Ceylan Formation. At these depths the original and sidetrack holes are less than 1 metre apart and the Company believes fluid invasion from the original hole had a material effect on test 3 flow performance. After recovery of all load fluid, the test 3 intervals were not capable of sustained flow.

Conclusion - Marsa considers tests one and two very significant as they confirm the potential of the Eocene play, which is the main play in most producing areas of the Thrace Basin, on the Ortakoy Block. Importantly, the Sogucak and Ceylan are both evident on the Company's 3D and 2D seismic coverage in a number of on-echelon trends, which will complement the Miocene play.

Poyraz N3-1

As previously reported, the Poyraz N3-1 exploration well, located approximately 1,500 metres north of Poyraz-2, spud August 15, 2014 and was drilled directionally to 1,000 metres TMD. The well was cased with a plugged back TMD of 467 metres and the rig was released August 28, 2014. Open hole and mud logs indicate a number of potential thin Kirazli sandstone gas zones that will need to be confirmed by production testing. Marsa intends to commence testing following testing at Poyraz S4-1.

Poyraz S4-1

Poyraz S4-1, located approximately 4,000 metres east of Poyraz-2, spud October 12, 2014 and was directionally drilled to 929.0 metres TMD. The well was cased with a plugged back TMD of 503.1 metres. Open hole and mud logs indicate a number of potential hydrocarbon-bearing zones within Miocene inter-bedded fractured limestone and marl units. The Company plans to commence completion and testing within the next two weeks.

Marsa Energy Inc.

Marsa ( is an international energy company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company's 100 percent working interest property is located on the Gallipoli Peninsula in the Republic or Turkey and is held through its wholly owned subsidiary, Marsa Turkey BV.

Marsa is headquartered in Calgary, Alberta, Canada and is publicly traded on the TSX Venture Exchange in Toronto, Canada.

ADVISORY: This press release may contain "forward-looking information" within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, included herein may be forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", " expects" or "does not expect", "proposed", "is expected", "budgets", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Marsa's current beliefs and is based on information currently available to Marsa and on assumptions Marsa believes are reasonable.
These assumptions include, but are not limited to, details regarding Marsa's assumptions with respect to the potential presence of natural gas from the exploration wells, as described above. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Marsa to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; commodity prices; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation affecting Marsa; timing and availability of external financing on acceptable terms and the drilling and completion of future wells. Although Marsa has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release represent the expectations of Marsa as of the date of this news release and, accordingly, are subject to change after such date. However, Marsa expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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