Nextraction Energy Commences Completion Operations on the Noble 6-24 Well in the Pinedale Anticline Field in Wyoming
June 29, 2010Vancouver, BC -Nextraction Energy Corporation (TSX-V: NE) (the "Company") announced today that its wholly-owned subsidiary, Nextraction Energy (US) Inc. ("Nextraction"), and its operating partner, Vantage Energy ("Vantage" - see press release dated January 26, 2010), have commenced completion operations for the Noble 6-24 well in the northern region of the Pinedale Anticline. The companies will move forward with a multi-stage frac program targeting the lower 13 stages of an eventual 21 stage completion program. Costs for the 13 stage completion are estimated to be US$ 1.9MM. Combined with drilling costs invested to date, the cost of the completed well will be approximately US$ 5.4MM. The pipeline for connecting the well to the main gathering system for production sales has been completed. The frac program should take approximately 10 days to complete and place the well into production for immediate gas sales.
Company President Mark S. Dolar states, "We are extremely excited about this next milestone in our development. The successful completion of the Noble 6-24 will move Nextraction from a speculative investment to a company with producing assets and cash flow. We are looking forward to establishing proved reserves on our assets, and enhancing the net asset value of the company as we continue on our growth plan."
Details
The zones being completed in this multi-stage approach will include the Mesaverde and Lower Lance formation from the depths 12,480 (3,804 meters) to 14,758 feet (4,612 meters). The remaining eight stages in the Middle Lance, Upper Lance, and Tertiary zones, ranging from 9,038 feet (2,754 meters) to 11,698 feet (3565 meters) will be frac'd at a later date.
Dr. Paul B. Trost, Director and VP of Operations, explains, "We decided on completing the Noble 6-24 with this strategy for two reasons. First, the bottom zones are completed with borate gel/sand frac and the upper zones are frac'd using a slickwater frac solution. We will be able to effectively quantify production volumes by isolating the two frac types of these overpressured zones, and analyze production flow back rates from each type of frac. This will enable us to better understand how to complete wells in the future. The frac design is similar to the completion process used by nearby operators on the Pinedale Anticline and is typical of the well designs in offsetting wells. Secondly, the upper zones will be frac'd at a time when the flush production volumes have an opportunity for improved natural gas pricing."
Stim-Tech, Inc. has been retained as a third party completion/frac design engineer, because of their expertise and knowledge on the Pinedale Anticline area. Nextraction/Vantage has also contracted BJ Services Company, a completion specialist in the Pinedale Anticline, to complete the well.
Jonah Gas Gathering Company (see press release dated March 15, 2010) has completed an 800 meter pipeline from the Noble #6-24 well to the existing market infrastructure. The well will be completed into the pipeline for sales of initial production flow rates. Thus gas sales are anticipated to be initiated in time for the increasing demand for natural gas in the upcoming fall and winter months.
An independent reserve report confirming reserves is currently being reviewed and will be released along with the completion results of this well.
In addition to the completion of the Noble #6-24 well, Nextraction has recently completed its first Chattanooga shale gas well in the Appalachian Basin and is currently undergoing production tests on the well.
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.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
FORWARD LOOKING STATEMENTS DISCLAIMER
Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Often, but not always, forward-looking statements or information may be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Statements regarding future production, reserve additions and capital expenditures are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulations Services Provider have reviewed this release and does not accept responsibility for the adequacy or accuracy of this release.
For further information on behalf of Nextraction Energy Corp, please contact:
Karmen Jade Birss
Manager, Corporate Development
Nextraction Energy Corp.
Phone: 604-630-0300
Toll Free: 1-888-630-0370
Info@Nextraction.com
www.Nextraction.com
