cex--Terry Brown---ran to 3 bucks on frankfurt listing--got ahead of itself---Terry is oil patch engineer and works for a living, don't take living outa co--this play is in old oilfield, infrastructure in place, hi demand area--ready market-----
Terry told me yrs ago he'd play cautious and take little pieces of jv's and build co, till he saw something that would work, then he'd go for it----he has jv'd out 75% of eastern methane play to stealth--who have done some VERY interesting horizontals and completions, by the way--and cex is going it alone on stony cree---
Very good news, from my point of view. Opinions? (posted by sandfur on s.h.)
December 1, 2006, (Calgary, Alberta) Contact Exploration Inc. (TSX-V: CEX) is pleased to provide an update on its 30-well retesting and work over program for the Stoney Creek field.
To date, Contact has completed initial retesting of 24 gas wells with the eight most productive wells having a combined deliverability in excess of 1mmcfd. Pressure surveys and electric logs have been run on the majority of the wells. With this information we will be able to determine the reserve potential from the existing zones and identify zones for future recompletion potential.
Additional gas wells may be tested over the next year to evaluate their potential. Contact’s objective is to establish a long term strategy to market this gas through a local marketing network.
In addition, Contact has swab tested three old oil wells which produced oil inflow rates from 10-25 bopd. Since these wells are already in place, minimal capital is required to put them on production.
These wells will be production tested over the next 3-6 months. Based on the stabilized production rates, as many as 12 more old oil wells could be retested and placed on production. Pressure surveys taken in the oil producing region of the field have shown that the average reservoir pressure is twice that which was previously reported. This higher reservoir pressure will positively impact our ability to recover additional oil from the field.
Contact is aggressively developing the Stoney Creek field to deliver incremental production from this well known field and to revitalize the field for commercial production.
We anticipate oil production revenue by year-end.
In addition to the work-over program, other exploration activity in the Stoney Creek area which is currently underway includes the completion and production of two horizontal wells drilled within the Stoney Creek Field, a three well re-entry program which includes a cased gas well that was shut in with very encouraging initial test results and the interpretation of a recently completed 100km seismic program designed to identify untested zones south of the South Stoney Creek field. To date, Contact has invested in excess of $8 million in the Stoney Creek field and surrounding area including seismic, drilling, completions,
re-testing and equipping.
Contact will continue to report further results upon the completion of further testing. While it is too early to project long-term production rates from the work-over program, Contact is very
pleased with the initial test results to date.
AI
