Action Energy Inc. (AEC - TSX Venture Exchange) Capital Program and Activity Update
CALGARY, Aug. 29 /CNW/ - Action Energy Inc. ("Action" or the "Company")
has drilled 15 wells in late Q2 and Q3 in the areas of Sylvan Lake,
Lloydminster, McLeans Creek, Karr and Galahad, spending approximately
$10 million.
In the Lloydminster area, the Company drilled 10 wells - one deepening
well for water disposal and a successful 9-well conventional heavy oil program
targeting the Lloydminster and Sparky zones. With the Company's experience in
the area and the successful program in the first quarter, the Company was able
to again complete the program below budget. The additional production has been
tied-in to the existing operated facilities with minimal capital spent on
expansion. All nine producing wells are on production with the remaining one
disposal well expected to be operational by the middle of October.
Results from the exploration program have been encouraging with the
Company's 100% working interest well at Sylvan Lake reaching total depth in
late June, encountering 9 metres of net pay out of 20 metres of gross oil
column in the Leduc primary target. Action has completed the well and will be
proceeding with the tie-in of the well and the installation of artificial lift
equipment by mid-September and production expected by the end of the third
quarter.
Action's Puskwaskau well drilled in the first quarter, the first of the
five-well exploration commitment in the Peace River Arch Farm-in area,
encountered only negligible oil and gas shows in the deeper primary targets,
and was therefore non-commercial. The well is being completed as a natural gas
well in the uphole Belloy Formation.
The Company drilled two more 100% working interest wells in the McLeans
Creek area making them the second and third wells of the five-well commitment
in the Peace River Arch Farm-in. The first McLean's Creek well at
06-26-073-21W5 resulted in a cased Gilwood oil well that is awaiting
completion. With successful completion, production is expected by the end of
October. The second McLeans Creek well at 102/16-36-073-21W5 is currently
drilling ahead as a PreCambrian target. With success, completion of the well
is expected to occur in September with production planned in October. Prior to
the end of the year, the Company will drill the remaining two wells on the
farm-in lands with one well in the West Calais area and another in the McLeans
Creek area.
Action has a 48.24% working interest in the drilling of a high-impact
exploratory well at Karr in our Peace River Arch core area, targeting natural
gas and condensate (52: API light oil) in the Beaverhill Lake Formation. This
well was triggered in part by a prolific well on offsetting lands drilled by
Action's farm-in partner. This non-operated well was spudded in early July and
drilling operations are still continuing. Action hopes to have completion
results before the end of the quarter.
At Galahad, the Company drilled a 69.7% working interest natural gas well
that has been cased for Ellerslie and Glauconite natural gas. Completion is
expected to commence in September. With a successful completion, production is
planned to begin in October.
In addition to the drilling program, five of the six shallow natural gas
wells drilled in the first quarter were tied-in and brought on production in
late July and August, with the remaining one well scheduled for mid-September.
As previously announced, the Company has signed a strategic 23.75 section
farm-in in the Jensen area of Southern Alberta. Under the terms of the
agreement, Action has the right to earn a 100% working interest in all P&NG
rights below the base of the Bow Island by drilling at least two Mississippian
test wells prior to October 15, 2007. The Company has determined locations for
three wells and is commencing with the licensing procedures for the wells.
With the completion of the Rolling Thunder Exploration Ltd. acquisition,
Action plans to continue with the outstanding commitments made by Rolling
Thunder management and will continue to evaluate its plans on the newly
acquired assets.
