Texalta Petroleum Ltd.
TSX VENTURE : TEX.A

Texalta Petroleum Ltd.

June 02, 2009 14:53 ET

Texalta Saskatchewan Drilling Update and Seismic Program in Australia

CALGARY, ALBERTA--(Marketwire - June 2, 2009) - Texalta Petroleum Ltd. ("Texalta") (TSX VENTURE:TEX.A) announces that drilling operations on the 5-12-7-3 W2 vertical wildcat well were completed on Sunday May 31, 2009.

The well encountered the Alida oil pay zone as expected, however, the reservoir rock was found to be impervious limestone rather than porous dolomite, so that even though the zone is oil saturated, it is not commercial and the well is to be abandoned. This wildcat well was drilled on a separate seismic feature at the southern most edge of the Wordsworth project area. Texalta's capital cost was reduced through a farmout and will be approximately $80,000.

An Agreement has now been reached with landowners on the northern edge of the Wordsworth area for work to begin on conversion of a previously drilled well into a saltwater disposal well for use by the producing wells at Wordsworth. The well will need to meet Saskatchewan Energy & Resources testing requirements as to injectivity prior to final approval of the well.

The next well at Wordsworth is a horizontal development well located southeast and parallel to the initial discovery well and should be completed by the end of July 2009.

At Wildwood, Saskatchewan, Texalta and partners will begin operations in the next weeks to perforate and test the Torquay zone in the deep vertical test well which was drilled in October 2008 and suspended in November of 2008.

In Australia, operations are progressing well on the 240 kilometre 2D seismic program on Exploration Permits EP103 and EP104 in the Georgina Basin, Northern Territory. As of June 1, 2009 the seismic contractor reports there are approximately 6 kilometres of recording to complete. Wet weather conditions have been an issue however, the previous estimated completion date of June 21, 2009 would appear to be reasonable.

Texalta intends to pursue several additional drilling projects on its Saskatchewan project areas through the end of 2009 calendar year and will make further announcements as the details become available. The Company currently has $1.2MM cash on hand, generates cash flow from approximately 175 boe per day of production (average cost of production is $12 / bbl) and has no debt.

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.

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

Contact Information