WSG Group Systems Inc.
TSX VENTURE : WSG

October 11, 2005 13:25 ET

WSG Group Systems Inc. Announces Successful Completion of Indonesian Well

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2005) - WSG GROUP SYSTEMS INC. (TSX VENTURE:WSG) ("WSG") which previously announced it has agreed to complete a business combination (reverse takeover) with Duinord Petroleum Inc. ("Duinord"), today announces that a subsidiary of Duinord, Duinord Glagah Kambuna Inc. has successfully tested significant amounts of gas and condensate in its Kambuna #2 well located offshore North Sumatra, Indonesia. Duniord's subsidiary holds a 25% interest in the Kambuna Technical Assistance Contract operated by a subsidiary of Serica Energy PLC.

The Kambuna #2 well tested flow rates of 17.5 MMSCFD and 1,500 BPD condensate. The operator is now preparing a Plan of Development for the Kambuna Field, which is located approximately 45 kilometers north of Medan, Indonesia's third largest city.

The well was drilled to a total depth of 7,963 ft below mean sea level (ft.ss) and entered the target reservoir, the Belumai sandstone, at a depth of 7,278 feet (subsea). The well encountered 64 feet of net gas pay sand with no indication of a gas-water contact.

The Belumai sandstone was tested over the 64 foot interval 7,278 to 7,342 feet (subsea) on a 48/64 inch choke at a stabilized rate of 17.5 million standard cubic feet of gas per day (MMscfd) together with over 1,500 barrels per day of 55 degrees API condensate. The flowing wellhead pressure during this test was 2,000 pounds per square inch and the quoted production rate was limited by the testing equipment.

Test results will now be evaluated in order to submit a plan of development for the Kambuna field to Pertamina, the Indonesian state oil company before the end of 2005.

"The success of the Kambuna #2 well confirms GFI's strategy to create value through developing already discovered but underappreciated fields and harvesting significant unrealized value. GFI is evaluating many other similar projects in Indonesia and other countries around the world," stated Raymond L. LaGarde, President of Duinord.

The drilling rig Galaxy Driller will shortly leave the Kambuna #2 location to commence drilling the Togar #1 exploration well in the Asahan Offshore Production Sharing Contract ("Asahan PSC"), where Duinord also holds a 25% interest. A subsidiary of Serica Energy PLC also serves as operator on the Asahan PSC. Additionally, the parties to the Asahan PSC will next week commence the acquisition of up to 1,500 line kilometers of 2D seismic data in the Asahan PSC. This program is expected to take 15 days to complete and is being carried out to confirm further possible drilling locations in the Asahan PSC.

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S., AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

Cautionary Statement

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding future plans and objectives of WSG and/or Duinord, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from WSG's and Duinord's expectations are risks detailed herein and from time to time in the continuous disclosure filings made by WSG with securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the business combination and has neither approved nor disapproved the contents of this press release.

Contact Information

  • WSG Group Systems Inc.
    Gregory C. Campbell
    President
    (403) 209-3381
    or
    Duinord Petroleum Inc.
    Raymond L. LaGarde
    President
    (281) 877-7299