Texalta Petroleum Ltd.

Texalta Petroleum Ltd.

October 01, 2009 07:30 ET

Texalta Places Third Wordsworth Horizontal Well on Production

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2009) - Texalta Petroleum Ltd. ("Texalta") (TSX VENTURE:TEX.A) is pleased to announce that surface pumping equipment has been installed at the third horizontal development well called the Texalta et al Wordsworth E. HZ 1B1-23/3B9-14-7-3W2. A flowline has been installed to deliver fluids from the well to the facility at 2A2-23-7-3W2.

Swabbing operations were completed on September 21, 2009 and the well was placed on pump on September 25, 2009. Results to date indicate a flow rate of approximately 150 barrels per day with a similar amount of water. These rates are slightly lower than the adjacent 2A2-23 well due to the shorter length of the horizontal section in the new well.

The well will take a few more days to stabilize its production rate but the Company expects that the well will produce initially on pump at a rate of 150 barrels per day and, like the second well, may produce about 60,000 barrels in the first two years of its productive life.

The next stage of the development of the Wordsworth East field will be a two well program scheduled for November 2009. This program will comprise a fourth horizontal well to the east of the most recently drilled well and a vertical well to the northeast of the field. The vertical well will test an isolated Alida structural feature and both wells will be drilled on a farmout arrangement with the farmee earning a 50 percent working interest in each well.

An additional 8 wells should be drilled to complete the development at Wordsworth East field when the Letter of Intent dated September 14, 2009 with Rogers Oil & Gas Corp. goes into effect in January 2010.

Texalta remains debt free and well funded for development plans, with gross production from all project areas of approximately 410 BOE/day (NET approximately 200 BOE/day) at an average operating cost of $12 per bbl.

TEX.A is a Calgary based company engaged in the exploration, acquisition and development of prospective oil & gas properties in Saskatchewan and Alberta, Canada. The company's wholly owned subsidiary, Texalta Australia Pty. Ltd. holds 82 percent working interest in two exploration permits covering in excess of 5.5 million acres of prospective land in the Georgina Basin, Northern Territory, Australia.

Note: BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Production volumes will fluctuate from month to month. The volume given is as of the date of this release only.

Neither 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.

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