Turnkey E&P Inc.

Turnkey E&P Inc.

December 22, 2008 20:21 ET

Turnkey E&P Inc. Announces Operations Update

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2008) - Turnkey E&P Inc. ("Turnkey") (TSX:TKY) today announced the completion results of the Vieman #1 and the Valjean Richard #1 wells and the placing on production of the previously announced completed Forestar #1 well.

The Vieman #1 well was drilled to a measured depth of 13,500' and encountered a high pressure water flow. The Anomolina sands were exposed and tested with the drill string stuck opposite them. The test was inconclusive as to whether the Anomolina #2 sand (the main target) was tested since the high pressure salt water from a deeper sand (Anomolina #3) may have prevented the lower pressure Anomolina #2 from entering the wellbore. The bottom Anomolina sands were plugged and the "S" sand at approximately 12,950' was then tested. This sand produced salt water with only a trace of gas. The well is being temporarily suspended and a 300' sidetrack at the bottom of the well is being considered to retest the Anomolina #2 in January 2009.

Turnkey has a 25% working interest and an 18.8% net revenue interest in this well.

The Valjean Richard #1 well has been tested and produced up to 1.8 million SCFPD of natural gas with an average GOR of 40,000 SCF/STB from the Homeseeker E sand. The well is deemed commercial and will be placed on production after the installation of a pipeline. The primary target sand has yet to be tested.
Before payout Turnkey has a 16.67% working interest and a 12.46% net revenue. After payout Turnkey will have a 15% working interest and an 11.1% net revenue.

The Forestar #1 well was placed on production on November 11, 2008 and is currently producing on a 10/64th choke. The well is producing 115,000 SCFPD, 152 BOPD and 252 BWPD with a FTP of 1100 PSI.

Before payout Turnkey has a 46.67% working interest and a 34.07% net revenue interest. After payout Turnkey has a 35% working interest and a 25.55% net revenue interest.

Additional information about Turnkey can be found on its website: www.turnkeyep.com or on SEDAR at www.sedar.com.

Contact Information

  • Turnkey E&P Inc.
    R. M. (Bob) Tessari
    President and Chief Executive Officer
    (281) 248-8822
    Website: www.turnkeyep.com