Twoco Petroleums Ltd.
TSX VENTURE : TWO

Twoco Petroleums Ltd.

December 29, 2010 17:04 ET

Twoco Petroleums Ltd. Production Update

CALGARY, ALBERTA--(Marketwire - Dec. 29, 2010) -

Twoco Petroleums Ltd. ("Twoco" or the "Company") (TSX VENTURE:TWO) is pleased to announce that it has placed on production its previously announced 2 gross (1.97 net) horizontal oil wells on the Company's Sparky heavy oil play in the Warspite area of Alberta. Based on the initial 9 days of production, the average initial rate for Well #1 is 65 bopd at a 5% water cut and for Well #2 is 53 bopd at a 17% water cut. The cost of drilling, completing and equipping these 2 wells was approximately $800,000 each. Twoco believes that future drilling costs on its Sparky heavy oil lands could be significantly reduced in a multi-well drilling program.

The Company will continue to monitor production from the 2 wells with a view to optimizing production and planning for the drilling of additional wells on the Company's lands comprising the Sparky heavy oil play.

Twoco's Sparky heavy oil play is comprised of 2,500 net acres, representing approximately 60% of the estimated pool area. Based on 200 metre inter-well spacing and 700 metre lateral lengths, the Company has identified up to 53 additional horizontal drilling locations on its lands. Twoco will review all capital expenditures on a regular basis throughout 2011 and adjust spending based on factors such as changes in commodity prices, availability of capital and drilling and production results.

Twoco is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in the Province of Alberta.

Forward-Looking Statements:

Certain information set forth in this news release contains forward-looking statements or information ("forward- looking statements"), including statements regarding the reduction of drilling costs, optimization of production, the drilling of additional wells, potential drilling locations, the area of the heavy oil pool and capital expenditure review and spending adjustments. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Twoco's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Twoco believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Twoco does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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

  • Twoco Petroleums Ltd.
    Wayne A. Malinowski
    President and Chief Executive Officer
    (403) 231-8653
    (403) 237-6048 (FAX)