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Re: None

Tuesday, 01/13/2015 12:11:40 PM

Tuesday, January 13, 2015 12:11:40 PM

Post# of 2589
Results to date indicate that the use of SAGD technology is successful in producing oil in the bitumen form from the Bluesky formation reservoir. Oil sales averaged 221 barrels of oil per day, half way through the 3rd thirty day period since the start-up of production. Over the next several months the SAGD well pair is expected to have increased steam injection and oil production as the steam chamber develops. The objective of this initial SAGD well pair was to establish that SAGD technology works in the Bluesky formation reservoir, and results to date support this. We are now focused on achieving commercial rates. We expect to achieve these results about March 2015 when reservoir modelling indicates that the steam chamber will have reached the top of the Bluesky formation sandstone reservoir. Peak production is anticipated to occur in the fourth quarter corresponding to the end of our first fiscal year of production.