FINALLY!
Archer Petroleum Corp.
TSX VENTURE : ARK
FRANKFURT : A6VA
September 30, 2011 08:00 ET
Archer Petroleum Provides Update on Matagorda Bay Recompletion Prospect
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2011) - Archer Petroleum Corp (TSX VENTURE:ARK)(DBFrankfurt:A6VA), (the "Company"), is pleased to provide the following update on its Matagorda Bay recompletion prospect.
South Bay Resources LLC, ("the Operator") has advised that the Parker 76B rig arrived under tow on location at the 127-1 well site at 22:30 PM hours, Wednesday September 28th, 2011.
Recompletion activities are expected to commence immediately with the perforation of the Bol Mex sand scheduled to occur in approximately five days, immediately followed by a Frac Pack. Testing of the well will follow the completion of the Frac Pack procedure.
As a result of operational changes including the addition of a Frac Pack procedure to the completion, the AFE for this operation has escalated to approximately $2.6m USD. These procedural changes were approved by the Company's board of directors in an effort to maximize production rates following a successful completion.
The Company is funding its share of this increase (~US$258,000) through a combination of cash from its treasury; a sale of a 1% interest in the project (thereby reducing its working interest from 23% to 22%); and the issuance of a 1.3125% gross overriding royalty in the project.
About the Matagorda Bay Prospect
The Matagorda Bay recompletion project comprises approximately 1,600 acres and consists of Texas State Blocks 127, 150 and the North half of Block 151, and includes 3 existing well bores, an existing 7 mile pipeline to shore and an onshore oil/gas handling facility.
A key component of this acquisition is the existence of a fully drilled, cored, logged, cased and shut-in well bore (the 127-1 well) in Block 127. The 127-1 well has multiple pay zones indicated on logs and cores and is expected to be initially completed in the Bol Mex (8560 - 8710' depth) section of the Lower Frio. Internal analysis of the logs and cores of the Bol Mex zone indicate approximately 115 feet of expected oil pay. The reservoir is estimated to cover a minimum of 350 acres with potential up to 750 acres.
About Archer Petroleum:
Archer Petroleum Corp. is an independent oil and gas company focused on exploration and development in North America. Archer's assets include properties in Matagorda Bay including Blocks 127, 150 and 151. The Company's shares are listed on the TSX Venture Exchange under the symbol "ARK" and the DB Frankfurt exchange under "A6VA". Further information on Archer can be found on the company's website at www.archerpetroleum.com.
ON BEHALF OF ARCHER PETROLEUM CORP.
Colin Bowkett, President
Although Archer believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Archer can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), and commodity price, interest rate and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Archer undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
