Poplar Creek Resources Inc.
TSX VENTURE : PCK

February 02, 2012 11:55 ET

Poplar Creek Resources Inc. Updates Activity

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Poplar Creek Resources Inc. (TSX VENTURE:PCK) ("Poplar" or the "Company"), "PCK" on the TSX Venture Exchange, is pleased to announce that it has been advised by the operator that it has placed on production the previously announced quad-leg horizontal oil well on the Sparky heavy oil property in the Warspite area of Alberta.

Based on the initial 30 days of production, the HZ Bellis 14-36-58-17W4 well was pumping at an average rate of 175 barrels of oil per day. This well is the fourth horizontal oil well drilled on jointly held lands at Warspite. Initial production from the Sparky heavy oil property was a single leg horizontal well placed on production in December 2010. The two previously announced tri-leg horizontal wells were placed on production in August 2011. Current production from the jointly held lands is approximately 300 barrels of oil per day.

Poplar has a 3.5% interest in approximately 2600 net prospective acres on the Sparky heavy oil property. As previously announced, the operator received approval from the ERCB which amended the drilling spacing on the Sparky heavy oil property to allow for the drilling of up to 8 horizontal lateral legs per pool per quarter section. In view of the results of the latest well it is the operator's intention to further amend the drilling spacing to allow for the drilling of quad-leg horizontal oil wells on the jointly held lands within the Sparky heavy oil property. Based on the same drilling configuration as the HZ Bellis 14-36-58-17W4 well, up to an additional 38 quad-leg horizontal wells (152 laterals) have been identified on the jointly held lands. In addition Poplar owns its share of associated production infrastructure at Warspite along with an interest in approximately 150 gross sections of land in the general Smoky Lake and Thorhild areas of Alberta.

The average cost per well of drilling, completing and equipping quad-leg horizontal oil wells in a multi-well program is estimated at $1,250,000.

Also, the Company recently completed its previously announced 3D seismic program at Radville/Ceylon, Saskatchewan and has earned a 15% interest in 640 acres of lands. The seismic is currently being interpreted with a view to making a drilling decision by the end of Q1 2012. These lands are on trend and prospective for Bakken oil production.

Forward Looking Statements:

This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, which address future activities including the closing of the financing, exploration drilling and activity, and events or developments that the Corporation intends, plans, anticipates, believes, estimates or expects are forward looking statements. Actual results may differ materially. Although the Corporation believes such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market conditions and difficulties of raising funds in this economic environment, availability and costing of exploration contractors; exploration success; continued availability of capital government regulations, laws and charges; environmental developments; exploitation economics; and generally the economic, market, financial and business conditions in the present volatile and uncertain economic period. Investors are cautioned that any statements are not guarantees of future performance and actual results or developments may differ materially from those stated in the forward looking statements. The Corporation does not intend, and does not assume any obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Poplar Creek. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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.

Contact Information

  • Poplar Creek Resources Inc.
    John Carruthers
    CEO
    (403) 452-5428

    Poplar Creek Resources Inc.
    Richard Edgar
    President & CFO
    (403) 616-5387