Shona Energy Company, Inc.
TSX VENTURE : SHO

October 03, 2011 13:11 ET

Shona Energy Company, Inc. Announces Successful Confirmation Well

CALGARY, ALBERTA--(Marketwire - Oct. 3, 2011) - Shona Energy Company, Inc. ("Shona") (TSX VENTURE:SHO) through its wholly-owned subsidiary, Geoproduction Oil & Gas Company ("Geoproduction") of Colombia, is pleased to announce the successful completion and testing of Nelson-3, a confirmation well to its discovery well, Nelson-2, located within the Esperanza concession in the Lower Magdalena Basin of Colombia. This concession is retained and operated 100% by Geoproduction.

Nelson-3 has an estimated 120 feet of net pay in the main Cienaga de Oro formation and 21 feet of net pay in a deeper Cienaga de Oro sand. A total of 94 net feet in the main Cienaga de Oro formation was perforated and tested at a rate of 11,600 MCFPD with 2573 psi flowing tubing pressure on a 28/64" choke. The Nelson-3 is a southwest offset to the Nelson-2 discovery well, and its results confirm Shona's geological interpretation of the sizeable Nelson natural gas discovery. The drilling rig is being moved to Nelson-4, which is a northeast offset to the Nelson-2, and would be the third producing well in the Nelson field upon its completion.

Additional testing of Nelson-2, which was completed in the upper 48 feet of the main Cienaga de Oro, was recently conducted and produced at a rate of 8,500 MCFPD with a flowing tubing pressure of 2520 psi on a 36/64" choke. Total net pay in Nelson-2 is 130 feet.

A 10 kilometer 6 inch pipeline has been installed from the Nelson field to Geoproduction's 100% owned and operated Jobo Station, where gas is processed for sales. Upon completion of the current construction works total processing capacity of Jobo Station is expected to be 65 MMCFPD. Gas is currently sold into the national gas transportation system. Additional gas sales from the Nelson field are expected to commence on January 1, 2012 at rates up to 19 MMCFPD.

Peru Block 102 Update

The Boa 1X Prospect was spud on September 20, 2011. It is anticipated to reach TD of 11,000 feet by October 31, 2011.

Cautionary Statements

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes, such as making investment decisions. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, information with respect to: operational decisions and the timing thereof, expected rates of production from producing wells on Shona lands and future drilling and exploration plans on the properties of Shona. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect. Although Shona believes that the expectations reflected in such forward-looking information is reasonable, undue reliance should not be placed on forward-looking information because Shona can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this press release, assumptions have been made regarding and are implicit in, among other things: the ability of Shona to complete transactions described in this press release and the timely receipt of any required regulatory and shareholder approvals. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which have been used. Shona undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on this forward-looking information.

The securities of Shona have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 press release.

Contact Information

  • Geoproduction Oil and Gas Company of Colombia
    Ricardo Mendieta
    571-630-4690

    Shona Energy Company, Inc.
    Shetal Mentlewski
    713-622-8809