CALGARY, ALBERTA--(Marketwire - July 4, 2012) - Nextraction Energy Corp. (TSX VENTURE:NE) (the "Company" or "Nextraction"), is pleased to announce flow test results from its latest completed horizontal well on its Provost Viking light oil property in eastern Alberta. Upon completion of a 10 stage fracture stimulation of the well, the well was flowed back on cleanup for 50 hours producing a total of 431 bbls of oil and 545 bbls of water, recovering 50% of the frac fluid. Over the final 24 hours of the flow test, the well produced at a rate of 210 bbls/d of oil with a 65% oil cut. The well has been shut-in to allow it to be tied into the Company's existing oil battery and brought onto production, which is expected to occur within the next week. Nextraction owns a 50% working interest in the well.
Company President, Kent Edney, states, "We are extremely excited and encouraged by the initial results of this well. They confirm the reservoir model our team has developed and give us confidence heading into the drilling and completion of additional wells in the remainder of the year. The anticipated production and cash flow growth will be significant for the Company and will help it to successfully take the next step as a high-growth Canadian oil company."
Nextraction is currently preparing for the next well in the drilling program, which it expects to commence in July. The Company plans to drill between 2 and 4 additional horizontal wells on the Provost property during the second half of 2012 and has identified 35 potential follow up locations to this initial well. The 2012 capital program is currently budgeted between $3,300,000 and $3,900,000.
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and natural gas company engaged in the exploration and development of oil and natural gas resources in the Western Canadian Basin. The Company's model is the "next round of extraction on known plays." Nextraction targets oil focused projects along trends with known reserves that provide low risk, high return development opportunities in both conventional and unconventional resource projects.
Certain statements made and information contained herein may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. These statements relate to future events or the Company's future performance. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "may have", "could", "would", "might" or "will" be taken, occur or be achieved. Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements speak only as of the date of this Press Release and are expressly qualified, in their entirety, by this cautionary statement.
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