Tuscany Energy Ltd. Confirms Sales Volumes for Q2 2014 and a Five Well Heavy Oil Drilling Program
July 29, 2014 (Source: Marketwired) — Tuscany Energy Ltd. (“Tuscany“) (TSX VENTURE:TUS) is pleased to report that the Company’s average sales volumes for the second quarter of 2014 were approximately 750 BOED.
Having closed its recent $3.0 million financing, the Company has commenced drilling operations on a heavy oil drilling program consisting of five wells in west-central Saskatchewan. Tuscany is the operator of all of these wells.
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Drilling has commenced on the first of these wells, 91/13-34-40-25W3, targeting a Dina oil prospect at Rutland, Saskatchewan. Tuscany will pay 50% of the drilling costs while retaining a 75% working interest in the well and lands covering this new prospect.
Following the Rutland well, Tuscany plans to drill two (1.2 net) horizontal development wells on its Evesham, Saskatchewan oil property. The wells will be drilled as 50 metre offsets from the most productive wells drilled on the property to date. Each of these wells has produced over 30,000 bbls of oil since being placed on production in September 2013 and are currently producing at an average rate of approximately 100 Bopd per well.
Lastly, Tuscany plans to drill two (2.0 net) horizontal development wells on its oil property at Macklin, Saskatchewan. The wells will offset the Macklin 97/7-28-39-28W3 well which was placed on production in March 2014, has produced over 15,000 bbls of oil to date, and is currently producing at a rate of approximately 95 Bopd.
Tuscany plans to continue its development program in its core areas of Evesham and Macklin during the balance of the year and plans to commence drilling on its portfolio of new prospects prior to year end.
ADVISORY: Certain information regarding the Company in this News Release including management’s assessment of future plans and operations may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, the timing and number of wells drilled, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could affect the Company’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company’s website (www.tuscanyenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
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 RELEASE.
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