CALGARY, ALBERTA--(Marketwired - Jan. 14, 2014) - Tuscany Energy Ltd. (TSX VENTURE:TUS)
("Tuscany" or the "Corporation") is pleased to announce that it has placed the recently completed horizontal heavy oil development well at Macklin, 96/7-28-39-27W3, on production at an initial rate of approximately 125 barrels of oil per day. It is anticipated that the well will decline to approximately 50 barrels of oil per day over the next six months with production rates remaining relatively stable thereafter.
Tuscany holds a 100% interest in the well which, has been connected to the Macklin central battery. The well is expected to result in Tuscany's average daily production averaging approximately 700 BOEd for the first quarter of 2014.
The well, which was drilled in December 2013, was partly financed from the proceeds of a $500,000 issue of shares issued on a development flow through basis.
Tuscany is a heavy oil development and production company with reserves, land holdings and production in Canada. The Company's principal focus is the exploitation of oil resources in Alberta and Saskatchewan through horizontal drilling. The majority of the Company's revenue is generated from oil sales in Saskatchewan.
ADVISORY: Certain information in this news release, including expected decline rate of well and sustainability of production thereafter and the Company's average first quarter production rates constitute forward-looking statements under applicable securities laws. Although Tuscany believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Tuscany can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs). Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalent of six to one; utilizing a conversion on a six to one basis may be misleading as an indication of value.
Initial production rates included herein may not be indicative of sustained production rates from the well.
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