CALGARY, ALBERTA--(Marketwired - Jan. 23, 2014) -
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Nextraction Energy Corp. (TSX VENTURE:NE) (the "Company" or "Nextraction") is pleased to announce that the Company has resumed production from its Noble 6-24 well (the "Well") on the liquids-rich Pinedale Anticline in western Wyoming, USA. The Well was shut-in in December 2011 due to depressed natural gas prices; however with the rebound of natural gas prices over the winter (currently $4.56/mcf at Opal Wyoming) and the continued strength of oil prices, Nextraction placed the well back on production on January 6, 2014.
Over the first 2 weeks of production, the well has produced an average of 650 mcf/d (108 boe/d) of natural gas and 30 bbl/d of oil, for a combined rate of 138 boe/d. These rates are consistent with what the well produced when it first came on production in July 2010 and the Company is very encouraged by these results.
At year-end 2012, Nextraction had Proved plus Probable reserves of 1,093 MMcf of natural gas and 22,000 bbl of oil assigned to the Noble 6-24 well, with a Net Present Value (before tax, discounted at 10%) of $2.1 million. As well, the Company had 2 undeveloped locations assigned with a combined total of 4,785 MMcf of natural gas and 96,000 bbls of oil of Proved plus Probable reserves with a Net Present Value (before tax, discounted at 10%) of $3.3 million. Nextraction owns 1,900 net acres of land in the Pinedale area.
Company President Kent Edney states, "After being shut-in for two years, we are excited with the initial production rates from the Noble 6-24 well. We have made changes to personnel in the field and the approach to production is allowing the well to produce at some of the best rates in its history. The anticipated increase to cash flow provides a strong start to 2014 for the Company."
For further information, please visit the Company's website at www.nextraction.com.
Cautionary Note Regarding Forward Looking Statements
Certain statements made and information contained herein may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. 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.
BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio 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. The estimated values disclosed herein do not represent fair market value.
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 News Release and are expressly qualified, in their entirety, by this cautionary statement.
Neither the 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 release.