PetroBakken Energy Ltd.
TSX : PBN

PetroBakken Energy Ltd.

December 17, 2010 00:49 ET

PetroBakken Provides an Update on Cardium Activity

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2010) - PetroBakken Energy Ltd. ("PetroBakken" or the "Company") (TSX:PBN) is pleased to provide an update on results from our horizontal drilling program in the Cardium formation in Alberta at Pembina, Garrington, and Lochend. Our activity levels have continued to increase and we now operate 10 drilling rigs in the Cardium play with one full time completion crew and two other completion crews on an intermittent basis. With this operating configuration we will be able to accelerate completion and tie-in operations so that by the end of the first quarter of 2011 we expect to be on a normal operating cycle with approximately 10 to 12 wells waiting to be completed and brought on production at any time.

In the month of November, we brought 8 (7.0 net) operated wells on production. Through the first sixteen days of December, we placed a further 8 (5.9 net) wells on production, and we anticipate that over the balance of December, we will add another 14 (12.2 net) operated wells. For November and December, we expect to bring a total of 30 (25.1 net) Cardium wells on production. The table below highlights the growing number of producing Cardium wells executed by PetroBakken.

Date Source Cumulative
Wells
Drilled
(gross/net)
Cumulative
Wells
Completed
(gross/net)
Cumulative
Wells On
Production
(gross/net)
October, 2010 Historical 31/25.4 16/13.4 7/6.6
November, 2010 Historical 44/37.2 26/21.5 15/13.6
December 16th, 2010 Historical 50/41.8 33/27.9 23/19.5
December 31st, 2010 Forecast 57/47.9 37/31.7 37/31.7

We now have 11 PetroBakken operated wells completed with slick water fracture stimulations that have sufficient history to provide both 7 day and 30 day initial production data. The average initial 7 day production rate from our first 13 wells is 415 bopd, and the average initial 30 day production rate from our first 11 wells is 245 bopd. These results continue to meet our original expectations for productivity from Cardium horizontal wells, and we anticipate further improvements in productivity and capital efficiencies from our drilling and completions operations as we continue to refine our methodologies.

PetroBakken previously reported initial production data from the time that the well is put on production exclusive of the initial flowback or testing period. However, the oil produced from the initial flowback period is sales oil, and although these reported volumes are initially field estimates, once the volumes are reconciled with sales receipts these volumes are now included in our 7 day and 30 day initial production data. In the future, as pipeline projects evolve, we expect to conserve more natural gas and natural gas liquids and include those volumes in our reported results. 

Forward Looking Statements. This press release contains forward-looking statements. More particularly, it contains forward-looking statements concerning potential exploration and development activities, including the timing for drilling, completing and bringing wells on production, and anticipated productivity and capital efficiencies. The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the availability of capital, the success of future drilling, completion, recompletion and development activities, the availability of equipment, labour and services, weather and access to drilling locations.

Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general including operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. There is no representation by PetroBakken that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

PetroBakken Energy Ltd. is an oil and gas exploration and production company combining, light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.

Contact Information

  • PetroBakken Energy Ltd.
    John D. Wright
    Chairman of the Board and Chief Executive Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    R. Gregg Smith
    President and Chief Operating Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    Peter D. Scott
    Senior Vice President and Chief Financial Officer
    403.750.4400
    or
    PetroBakken Energy Ltd.
    William A. Kanters
    Vice President Business Development and Corporate Planning
    403.750.4400
    ir@petrobakken.com
    www.petrobakken.com