Winslow Resources Inc.
TSX VENTURE : WLR

Winslow Resources Inc.

November 04, 2005 09:00 ET

Winslow Signs Sawtooth Agreement; Proceeds with CBM Completions

CALGARY, ALBERTA--(CCNMatthews - Nov. 4, 2005) - Winslow Resources (TSX VENTURE:WLR)

Medicine Hat Project

Winslow has signed a farmout agreement with a private oil and gas company to test the Sawtooth formation in the Medicine Hat area of southeast Alberta. The Company is reviewing all relevant well and geophysical data related to an abandoned Sawtooth well, originally drilled during the 1990s, in order to determine the viability of twinning the original well. A closed chamber DST was acquired over the reservoir interval and tested over 3mmcf/d from the Sawtooth formation sands. Logs indicate over two meters of gas pay in the upper Sawtooth.

Winslow believes the original well encountered cementation and perforation problems around the potential producing zone and was subsequently abandoned. The Company is optimistic that an offsetting well designed to open hole complete the top of the Sawtooth formation may deliver significantly better results. Winslow would pay 100% of the well costs to earn a 100% working interest before payout and retain a 60% interest after payout in all zones below the Bow Island formation. The Company would earn the section drilled and one additional section and have a rolling option to drill up to six other sections. Production rates of 300-500 mcf/d or more have been achieved from similar Sawtooth reservoirs in the area.

Chigwell Project

Completion work on the previously announced CBM well drilled at Chigwell is scheduled to begin by the end of November pending approval of requests submitted to the government for co-mingling and testing of the various coal packages. Well logs indicate approximately 16 meters of net coal occur within the Horseshoe Canyon formation. The various coal packages will require fracture stimulation and testing to determine the distribution and volumes of gas present.

The Company anticipates having the well on production by year end. Production rates of similar wells in the area suggest potential initial rates of 80-100 mcf/d may be expected. Winslow will have a 100% working interest BPO and a 65% interest APO. The Company is proceeding with a holding application submittal which, pending approval, will allow Winslow to drill an additional three wells on the earned section. The Company also has the option to drill additional CBM wells with partners on an offsetting section.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Winslow Resources
    John Nelson
    President
    (403) 355-1175
    or
    Winslow Resources
    2500, 101 - 6 Avenue SW
    Calgary, AB T2P 3P4
    (403) 264-6161
    (403) 266-3069 (FAX)