Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

December 01, 2011 07:45 ET

Open Range Energy Corp. Announces Significant Notikewin Horizontal Well Results and De-Risking of Notikewin Horizontal Inventory

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2011) - Open Range Energy Corp. (TSX:ONR) ("Open Range" or the "Company") is pleased to announce that its most recently completed horizontal well targeting the Notikewin Formation at its core Ansell/Sundance Deep Basin property has achieved an initial seven-day production rate IP7 of 7.0 mmcf per day plus natural gas liquids at a casing pressure of 12,400 KPa, adding approximately 1,230 boe per day in net production and increasing the Company's current production to approximately 6,000 boe per day.

The 100 percent Open Range 03/13-26-52-20W5M Notikewin well was spud on September 30, 2011 and drilled to a geological depth of 2650 metres, with a 1200-metre horizontal leg. Fracturing using a packer system commenced on November 21, 2011 and included a total of 9 fracturing stages with approximately 80 tonnes of proppant per stage. The well was flowed back on cleanup and was subsequently tied-in to the Company-operated 60 mmcf per day capacity Ansell/Sundance processing facility.

The 03/13-26 well's strong results substantially de-risk Open Range's mapped Notikewin horizontal inventory of 40 (34 net) locations at two wells per section at Ansell/Sundance. An additional Notikewin horizontal well is currently awaiting fracturing and is anticipated to be on-stream before year-end.

Open Range is also pleased to provide an update on its previously announced 12-31-53-21W5M Wilrich horizontal well. Since coming on-stream on October 26, the 60 percent Open Range 12-31 well has achieved an IP30 of 5.3 mmcf per day plus natural gas liquids of approximately 10 bbls per mmcf, or 560 boe per day net.

These results further confirm the strong repeatability of Open Range's Wilrich play, which stands at nine gross horizontal wells on-production plus a current inventory of 35 (30 net) locations at two wells per section. One additional Wilrich well was recently drilled and is anticipated to be on-production before year-end.

In addition, Open Range's first horizontal well (60 percent working interest) targeting the Cardium Formation was recently drilled at Ansell/Sundance and is awaiting fracturing operations.

Drilling operations using two rigs are ongoing at Ansell/Sundance, with a further two gross Wilrich wells to spud before year-end.

OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY WITH FOCUSED OPERATIONS IN THE DEEP BASIN REGION OF ALBERTA.

OPEN RANGE HAS APPROXIMATELY 74.7 MILLION COMMON SHARES ISSUED AND OUTSTANDING, WHICH TRADE ON THE TSX UNDER THE SYMBOL "ONR".

Reader Advisory

This news release contains certain forward-looking statements, which include assumptions with respect to (i) results from drilling and completion operations; (ii) production; (iii) future capital expenditures and operating activities and how they will be financed; (iv) funds from operations; (v) cash flow from operations; and (vi) general oil and gas industry activity. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Such risks and uncertainties include, without limitation, risks associated with oil and natural gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, operating risk liability, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, Open Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on the foregoing risks and other factors that could affect Open Range's operations and financial results are included in the Company's annual information form and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Disclosure provided herein in respect of barrel(s) of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    403-205-3704
    www.openrangeenergy.com