Wednesday August 26, 11:37 am Eastern Time
Company Press Release
SOURCE: Tracer Petroleum Corporation
Tracer Reports Drilling Results and Announces Association for Acquistion
VANCOUVER, B.C. Aug. 26 /PRNewswire/ -- Tracer Petroleum Corporation (Nasdaq: TCXXF - news, TCXWF - news; Vancouver: TPC - news) reports that plug and abandon operations have been completed on the Ngurit-2 well in the North Tanjung PSC in Kalimantan, Indonesia.
The well drilled into the target reservoir sands of the Lower Tanjung Formation approximately 240 feet high to prognosis. While the sands were gas bearing as expected, thereby confirming positive reservoir seal and the updip areal extent of the trap, they were too poorly developed to satisfactorily mod well productivity objectives. Logs indicated up to 60 net feet of pay in 8 packages of thin sand and shale sequences.
In addition to these sands, a basal formation of quartzite previously believed to be non-productive was logged indicating a highly fractured, potentially gas productive interval. This interval was tested with an openhole packer on tubing, and flowed 1,428 bbls of formation water and small amounts of gas in a 22-hour test period, indicating good productivity from this newly defined play type despite the lack of commercial hydrocarbons in this zone at this location.
The Company continues to believe the reserves surrounding the Ngurit-l discovery are sufficient for the proposed Ngurit gas-fired power generation project. The purpose of the Ngurit-2 well was to determine the updip extent of reserves and provide additional deliverability for such a project. A review is being made of further development potential of the Ngurit structure in light of the results of Ngurit-2, the current economic environment in Asia, and additional development possibilities outlined below.
The Company is pleased to announce that it has signed an Association Agreement with a major Indonesian bank group. This innovative agreement is intended to provide a necessary blanket mechanism to expedite the Company's proposed participation in specific joint venture(s) with the bank. The joint venture(s) under consideration allow(s) the Company to enter and operate currently identified individual oil and gas contract areas, subject to necessary approvals. These areas either are in production or are in the development stage for production.
One such joint venture proposal covering one block with multiple structures is before the bank, which has agreed in principle with the terms of the joint venture, pending successful internal petroleum engineering study results and acceptance by relevant authorities. Further details will be made available after the necessary joint venture approvals.
This review contains ''forward looking statements'' as per Section 21E of the US Securities and Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.
SOURCE: Tracer Petroleum Corporation
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