Parkland Energy Services Inc.
TSX VENTURE : PKE

December 09, 2010 16:12 ET

Parkland Energy Services Inc: Press Release of Investment in Amos 36-3 Well

RED DEER, ALBERTA--(Marketwire - Dec. 9, 2010) - On September 30, 2010, Parkland Energy (TSX VENTURE:PKE) invested in a non-operator working interest in the Amos 36-3 well located in Conecuh County, Alabama. Drilling commenced on October 15, 2010 and the well was perforated and initially produced 880 bbls/day and 600 mcf/gas. The well was productive without requiring additional stimulation after perforation. 

Over a 72 hour test, the Amos 36-3 well produced at a rate of 600 bbls/day and 425 mcf/day. The oil produced had a 48 API gravity. Initial analysis of core samples and reservoir pressures suggest primary recoverable reserves in excess of 650,000 BOE. 

The operator is filing for an Air Permit from the Alabama Department of Environmental Management that is required before permanent production facilities can be built. The well is shut in until all regulatory and environmental requirements on the production facilities are met. It is anticipated that permanent production will commence in early 2011 with a daily limitation not to exceed 400 bbls/day.

Parkland Energy is pleased to announce that it owns additional acreage in future offset wells to the Amos 36-3 well.

Parkland is a company based in Red Deer, Alberta that specializes in the manufacturing of separator packages, metering skids, production tanks and pressure vessels, and the provision of sandblasting and painting, coating, welding and fabrication services. And through its wholly owned subsidiary Ace Oilfield Construction Ltd. provides lease site construction and reclamation, as well as, small inch pipeline construction and facility work. The company's common shares are listed on the TSX Venture Exchange and trade under the symbol "PKE".

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of hydrocarbon reserves and resources, the realization of reserve and resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of drilling and development operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements 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 statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of hydrocarbon resources; production or recovery rates; accidents, Labor disputes and other risks of the oil and gas industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Parkland Energy Services Inc.
    Sandy Woitas
    Vice President Operations
    403-346-8119