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Painted Pony Petroleum Ltd. is pleased to announce results from recent Montney wells and to provide an operational update.

LOWER MONTNEY RESULTS AT KOBES/GUNDY

Following a 5 day clean-up, the horizontal well Gundy d-B67-J/94-B-9 (20% working interest) flowed in-line for 19 days at an average rate of 11.6 million cubic feet per day (mmcf/d), with a peak rate of 13.1 mmcf/d. The average pressure during the 19 day test was over 2,900 psi. Current production is 11.5 mmcf/d and the well has produced 0.3 Bcf in less than one month.

On the same pad, the horizontal well Gundy c-67-J/94-B-9 (20% working interest) was brought on-stream in December 2010. The well was drilled and completed during the summer of 2010 though it was not tied-in until the Gundy compressor facility was completed. The well is currently producing 6.1 mmcf/d at over 1,400 psi, after one month on production. 

Approximately 4 miles away on the same contiguous block of land, the horizontal well Kobes a-B10-J/94-B-9 (20% working interest) has been on production since August 2010. Initial production was 9.8 mmcf/d, and the average production rate during the first 30 days following cleanup was 8.5 mmcf/d at an average pressure of over 2,900 psi. The well has produced 0.85 Bcf in approximately 4 months.

MIDDLE MONTNEY RESULTS AT KOBES

The horizontal well Kobes a-A10-J/94-B-9 (20% working interest) has been on production since October 2010. The average production rate during the first 30 days following cleanup was 6.6 mmcf/d, at an average pressure of 1,000 psi. The well has produced over 0.5 Bcf in less than three months, and is currently producing at 5.9 mmcf/d. 

UPPER MONTNEY RESULTS AT GUNDY AND BLAIR/TOWN

In addition to the wells in the lower and middle Montney discussed above, Painted Pony now has 3 upper Montney horizontal wells on production. Production from the first two wells, which were brought on-stream at Blair approximately eight months ago, has exceeded original expectations significantly. The third upper Montney well (20% working interest), Gundy d-A67-J/94-B-9 is currently producing at 2.3 mmcf/d after 29 days on production.

THREE-TIERED MONTNEY DELINEATION PROGRAM UNDERWAY

Painted Pony continues to actively delineate all three Montney intervals on the Company's significant land position in northeast British Columbia. The Company holds approximately 118 net sections with Montney rights in this area.

On the Cameron/Kobes block all three intervals in the Montney have been proven commercially productive with horizontal wells. On the Blair/Town block (85 net sections), the upper Montney has been proved commercially productive with horizontal wells, and the lower and middle Montney have been tested successfully using vertical wells. Additional horizontal piloting is planned for all three intervals at Blair/Town in 2011.

Currently, the Daiber b-60-C/94-B-9 upper Montney horizontal well (20% working interest) is being completed with results expected by February. The Blair d-8-F/94-B-16 vertical well (50% working interest) is currently being flow tested and the Blair d-40-F/94-B-16 lower Montney horizontal well (30% working interest) is scheduled to be completed before the end of January. An additional upper Montney horizontal well (50% working interest) is currently drilling at Blair d-5-K/94-B-16. Painted Pony plans to drill a total of 5 (2.9 net) Montney wells during the first quarter of 2011.

The Montney zone across the entire area contains sweet, low-carbon dioxide gas, with high heat content and an estimated liquids-to-gas ratio of over 20 bbls/mmcf. 

OPERATIONAL UPDATE

Painted Pony's production has continued to grow to record levels despite weather-related operational delays and pipeline apportionment, with field-estimated December 2010 production averaging 3,950 boe/d (52% oil and liquids, 48% gas). Based on field estimates, production for the fourth quarter of 2010 was 3,360 boe/d (54% oil and liquids, 46% gas).

In Saskatchewan, the Company has completed construction of oil batteries and solution gas gathering systems at Midale and Huntoon. After two months of sales, the average gas-to-oil ratio was 1,140 cubic feet/barrel of oil, and the recovered liquids-to-gas ratio was 180 bbls/mmcf. These results are believed to be higher than other parts of the Viewfield Bakken pool, and enhance the economics of the area. 

At Flat Lake, Painted Pony's Bakken discovery well (please refer to the press release dated November 9, 2010) continues to produce at a rate of 176 bbls/d (88 bbls/d net) after 2 months on-stream. Flat Lake continues to be an exciting new core area for the Company and further development planning is underway.

At North Weyburn, the Company drilled a Bakken exploration well (100% working interest) in the fourth quarter of 2010 with completion planned for first quarter 2011. 

In the first quarter of 2011, Painted Pony plans to drill 13 (8.0 net) wells targeting light oil in southeast Saskatchewan, with a two-rig program.

 

Source: Marketwire

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