ARN-V
ARCAN PROVIDES OPERATIONAL UPDATE AND ANNOUNCES RECORD WELL RESULTS
CALGARY, ALBERTA, Jul 20, 2011 (Marketwire via COMTEX News Network) --
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan") announces that it has achieved excellent 30-day initial production rates from two new Ethel wells at 1-04-68-8W5 ("1-04") and at 5-35-67-8W5 ("5-35"). In addition, Arcan is providing an operational update on its 2011 capital program.
Ethel Well Results
Arcan's 1-04 and 5-35 single leg horizontal wells in the Swan Hills Beaverhill Lake play were drilled from the pad-site at 5-34-67-08W5 and were completed using 14 separate, 100 cubic meter hydrochloric acid fracture stimulation treatments. Arcan is pleased to announce that over its first 30 days of production, the 1-04 well averaged approximately 732 barrels of oil equivalent ("BOE") per day of 40 degrees API light sweet oil with approximately five percent associated solution gas and cumulative production of 21,946 BOE. The 5-35 well averaged approximately 681 BOE per day of 40 degrees API light sweet oil with approximately five percent associated sweet solution gas and cumulative production of 20,437 BOE in the first 30 days. Both wells are in the Ethel area and do not have the benefit of pressure support from the anticipated fourth quarter 2011 waterflood implementation.
Arcan's 1-04 and 5-35 wells reflect a change in stimulation volume size from the previous 600 cubic meter stimulation to a heightened 1,400 cubic meter hydrochloric acid stimulation. Both wells were drilled from the same pad-site as Arcan's second horizontal well 10-27-67-8W5 ("10-27"), which came on-stream in May 2010. The 10-27 well produced approximately 11,650 BOE over the first 30 days, 36,300 BOE over the first six months and has had cumulative production of approximately 53,000 BOE on primary recovery in the first fourteen months. Arcan estimates that the 1-04 and 5-35 wells each cost $4.4 million to drill, complete, and equip. Both wells are expected to reach payout at approximately 60,000 BOE of production. (assuming $100 per barrel Edmonton Light Sweet oil price). The initial results from Arcan's new wells are very encouraging and Arcan will continue adapting and improving its operational efficiency to enhance the productive and economic capabilities of its capital program. |
