Nextraction's Noble 6-24 Well Flows Back 3 Million Cubic Feet Gas/DayJanuary 4, 2011
Increased Production Verifies Potential of North Pinedale Region
Vancouver, BC - Nextraction Energy Corp. (TSX-V: NE) ("Nextraction") is pleased to report that the completion of the Upper Lance and Tertiary zones of the Noble 6-24 well resulted in a flowed back rate of 4.853 million cubic feet of gas (MMCFG) over an 8-hour absolute open flow test, with an average rate of 3.007 MMCFG/day on an initial 24 hour test. Over a five day flow back period to recover frac fluids the well produced a total of 6.153 MMCFG, 34 barrels of condensate, and 274 barrels of water/frac fluids through a ½ inch choke. The well was then shut in for the installation of production tubing to assist in the recovery of production fluids. A sustained flow rate will be determined and released upon completion of frac fluid recovery and the removal of the water from the lower previously frac'd formations.
Mark S. Dolar, President of Nextraction said, "We have learned a great deal by drilling and bringing into commercial production our first well at Pinedale. The ability to share production data with other operators has added to our knowledge of completion techniques unique to the Anticline. The success of the first well means that we can now look at the North Pinedale region as the multi-well program (30-60 well potential) we had anticipated when we acquired an interest in the play."
Fracing the Middle Lance, Upper Lance, and Tertiary sand zones in the upper portion of the well follows the previous completion of the Lower Lance and Mesaverde zones. These two lower zones had an initial flowing rate of 1.1 MMCFGPD and 29 barrels of condensate (please see Nextraction's news release dated August 9, 2010, a copy of which can be found under Nextraction's profile on SEDAR at www.Sedar.com). The significant increase in gas can be attributed to the successful fracing of the upper zones and more importantly establishes the outstanding potential of the North Pinedale region. Nextraction owns an interest in 3,774 acres of leasehold. Nextraction holds a 25% interest with Vantage Energy LLC ("Vantage") on 2,600 acres and a 100% interest on 1,174 acres in the area.
Nextraction holds a 100% interest in the Noble 6-24 well until it receives 150% of payback on investment capital for the well and surrounding infrastructure, estimated at (US) $6.8 million. Upon reaching payback, Nextraction's interest will reduce to 73.75% with Vantage then owning the remaining 26.25% interest in the well (please see Nextraction's news release dated October 8, 2009 for details of the deal terms between Vantage and Nextraction, a copy of which can be found under Nextraction's profile on SEDAR at www.sedar.com).
As a result of the increased exploration potential, Nextraction has now scheduled the acquisition of seismic data on its Pinedale leasehold in the first quarter of 2011 and is acquiring existing 3-D seismic data in the immediate area. The seismic data will assist in the determination of future locations. Nextraction anticipates the development of 30-60 future wells at Pinedale, which may include wells on Nextraction's 100% owned leases.
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves that provide lower risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company is headquartered in Vancouver, BC, Canada and has a U.S. operations office in Golden, Colorado, USA and a new Canadian operations office in Calgary, Alberta Canada as of this month.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
For further information please contact:
Manager, Corporate Relations, Nextraction Energy Corp.
FORWARD LOOKING STATEMENTS
Certain statements made and information contained herein may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. These statements relate to future events or Nextraction's future performance. Although management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that any forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements speak only as of the date of this Press Release and are expressly qualified, in their entirety, by this cautionary statement.
In particular, this Press Releasecontains forward-looking statements pertaining to the potential number of wells in the Pinedale Area, Nextraction's participation in the Pinedale Area and Nextraction's business in Canada and the USA generally. Nextraction's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risk factors, including: uncertainties associated with estimating resources; geological, technical, drilling and processing problems; dependence upon farm-out and joint venture partners; liabilities and risks, including environmental liabilities and risks, inherent in the oil and gas industry; competition for, among other things, capital, acquisition of reserves, equipment, undeveloped lands and skilled personnel; and lack of availability of additional financing.
Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information. Although Nextraction has attempted to identify factors that may cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actual results, performance, achievements or events to not be as anticipated, estimated or intended. Also, many of the factors are beyond our control. As actual results and future events could differ materially from those anticipated in such statements and information, readers should not place undue reliance on forward-looking statements or information. Except as may be required by law, Nextraction undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
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