Spartan Exploration Ltd.
TSX : SPE

Spartan Exploration Ltd.

October 25, 2010 07:30 ET

Spartan Exploration Ltd. Enjoys 100% Cardium Drilling Success, Provides Operational and Production Update

CALGARY, ALBERTA--(Marketwire - Oct. 25, 2010) - Spartan Exploration Ltd. ("Spartan" or the "Company") (TSX:SPE), is pleased to provide an operational update on its Pembina Cardium drilling activities. To date, during 2010 Spartan has drilled or participated in the drilling of 14 (9.82 net) horizontal Cardium oil wells, with a drilling success rate of 100%. This represents approximately 71% of Spartan's 2010 Cardium oil drilling program.

Spartan currently has a total of 8 (6.13 net) Cardium horizontal oil wells producing in Pembina. The Company is currently producing in excess of 1,400 boe/d (80% oil and liquids) based on field estimates. In addition, the Company has another 6 (3.69 net) Cardium horizontal wells that have been drilled. Four (3.24 net) of these wells have been completed and are awaiting tie-in and the remaining 2 (0.55 net) are expected to be completed in the coming weeks. All of these wells are expected to be on production by mid December.

Spartan expects to exceed its third quarter production target of 850 boe/d and is on track to meet or exceed its stated guidance of 2010 fourth quarter average production of 1,500 boe/d and exit production of 1,800 boe/d (81% oil and liquids). Spartan will release its third quarter results on November 15, 2010.

Spartan, based in Calgary, Alberta, has been engaged in the business of acquiring crude oil and natural gas properties and exploring for, developing and producing oil and natural gas in western Canada since mid 2008. Spartan is uniquely positioned with a significant position in three leading oil resource plays in western Canada, being the Bakken light oil resource play in southeast Saskatchewan, the Lower Shaunavon medium gravity oil resource play in southwest Saskatchewan and the Cardium light oil play in the Pembina area of central Alberta.

READER ADVISORY

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Spartan. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In the interest of providing Spartan shareholders and potential investors with information regarding the Company, including management's assessment of Spartan's future plans and operation, certain statements throughout this press release constitute forward looking statements. All forward-looking statements are based on the Company's beliefs and assumptions based on information available at the time the assumption was made. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements. By its nature, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. Spartan believes the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward looking statements contained throughout this press release should not be unduly relied upon. These statements speak only as of the date specified in the statements.

The Company's actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release.

Except as required by law, Spartan does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil.

Contact Information

  • Spartan Exploration Ltd.
    Richard F. McHardy
    President & CEO
    (403) 294-9196
    (403) 294-9126 (FAX)
    or
    Spartan Exploration Ltd.
    Michelle Wiggins
    Vice President Finance & CFO
    (403) 294-9196
    (403) 294-9126 (FAX)
    or
    Spartan Exploration Ltd.
    1000, 606 - 4th Street SW
    Calgary, Alberta
    www.spartanexp.com