Nextraction Acquires Seismic Data to Advance Pinedale Project Toward Selection of Next Well SitesFebruary 15, 2011
Vancouver, BC -Nextraction Energy Corporation (TSX-V: NE) ("Nextraction" or the "Company") is pleased to announce it has engaged the services of Geokinetics USA Inc. to conduct a 2-D seismic acquisition program on the Company's Pinedale property located on the northern Pinedale Anticline, Wyoming, USA. The Company has also acquired 11 square miles of three dimensional (3-D) seismic data for the project area. The seismic information will greatly assist the Company in selecting future well locations on its property leases.
The seismic data will define structures, interpret sand thicknesses and enhance the Company's ability to locate optimum sub-surface targets. The Company anticipates spending $280,000 for the entire 2-D seismic program and anticipates the data will prioritize the 30+ possible well locations on the current well super pad. Drilling will follow the collection and interpretation of the 2-D and 3-D seismic data, with each well projected to cost $5.5-$6.5 million dollars.
Nextraction has also assumed operations of the project from joint venture partner Vantage Energy, LLC. Nextraction and Vantage share ownership in 2,600 acres of the Pinedale Project leasehold and Nextraction owns 100% interest in an additional 1,174 acres, capable of supporting up to 31 additional wells.
Mark S. Dolar, President of Nextraction states "After completing the Noble 6-24 well and sharing data with area partners, we determined that seismic data would be the logical tool to enhance our project development along the Anticline. Becoming the project operator is also an exciting and necessary step as it enhances our ability to maximize revenue and control further development. Our first well is a great success for us, as we are producing liquids-rich gas, generating revenue, and have proven the extension of economic production along the Anticline within our lease position."
Nextraction recently completed the upper productive zones in its first well, the Noble 6-24, in December and issued an initial flow rate of 3 million cubic feet of gas (cfg) per day (please see Nextraction News Release dated January 4, 2011). The lower zones were completed in July, 2010 and had an initial flowing rate of 1.1 million cfg and 29 barrels of condensate per day (please see Nextraction news release dated August 9, 2010).
Mr. Dolar adds "Production equipment originally placed at the well pad could not produce in excess of 500 thousand cfg per day. As operator, we are situating new equipment on location capable of managing pressures at the well head and pipeline intake to enhance production. By increasing production from the Noble 6-24, and adding new development wells after the seismic program is completed, our objective is to quickly advance development of what may be over 80 billion cubic feet of gas (net) to the Company. (A copy of the technical report prepared by MHA Associates Inc., dated effective April 1, 2010, can be found under Nextraction's profile on SEDAR at www.sedar.com).
About Nextraction Energy Corp.
Nextraction Energy Corp. is a Canadian junior oil and gas producing company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves and plays 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 has offices in Vancouver, BC, Calgary, Alberta and Golden, Colorado. In addition to the Provost field, Nextraction has current gas production and is currently developing a multi- well tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, a Chattanooga shale gas resource play in eastern Kentucky/Tennessee, and is conducting seismic operations with the intent of commencing exploration efforts for Bakken oil in the Williston Basin.
On behalf of the Board of Nextraction Energy Corp.
"Mark S. Dolar"
President and CEO
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