Mystique Energy, Inc. Completes Initial Round of Drilling at Harmatten / Lochend
CALGARY, Jan. 18 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSX Venture:
"MYS") announced that it has completed the drilling of the first five wells on
the previously announced development drilling farmout from Provident Energy
Ltd. in the Harmatten / Lochend area located northwest of Calgary.
Mystique's obligation under the terms of the farmout agreement was to
drill a minimum of three wells. Mystique has the option to drill additional
wells following the drilling of the three initial wells. In the first round of
drilling, Mystique drilled and cased a total of five wells. The drilling rig
was released from the fifth well on January 8th. Mystique paid 72% of the
costs of drilling and completing the five wells (equivalent to 3.6 gross
wells) to earn an average 36% working interest in the five wells (equivalent
to 1.8 net wells).
Four of the five wells have been completed. The fifth well is presently
being completed. Plans are being formulated to construct flowlines and equip
the wells to start production during the latter part of the first quarter. The
new production will be tied into existing facilities operated by Provident
Energy Ltd.
Mystique will be monitoring the performance of the wells and is
finalizing plans to continue drilling additional option wells starting in the
second quarter of 2005. There are 4480 acres of undrilled land remaining under
the terms of the farmout agreement.
According to Mystique president, Vic Luhowy, "We are pleased with the
drilling results to date. Preliminary indications are that reserves and
production from these wells will be equal to or better than we had expected.
These initial results provide us the encouragement to continue the farmout
drilling program later this year."
Based in Calgary, Mystique is involved in the exploration and
exploitation of petroleum reserves in western Canada.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This news release
may contain forward-looking information. Actual future results may differ
materially from those contemplated. The risks, uncertainties, and other
factors that could influence actual results are described in documents filed
with regulatory authorities.
For further information: For additional information on Mystique, please
contact Victor Luhowy, President & Chief Executive Officer, Mystique Energy,
Inc., Tel: (403) 261-3634, Fax: (403) 265-3348, vic@mystiqueenergy.ca,
Website - www.mystiqueenergy.ca
