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CALGARY, ALBERTA--(CCNMatthews - Sept. 19, 2006) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Open Range Energy Corp. (TSX:ONR) is pleased to announce details of its exploration success at its core Ansell/Sundance property. In addition to previously announced Cadomin Formation results the Company reports success in four other formations. These results confirm the Ansell/Sundance property is an excellent multi-zone Deep Basin gas complex with extensive development inventory offering strong potential for significant reserve and production growth.
Discovery in the Bluesky Formation
At Ansell, Open Range has discovered a new Cretaceous Bluesky natural gas pool at 7-26-53-20W5M (37.5% working interest). The well, operated by Open Range intersected 11 metres of net gas pay with reservoir pressure of 3,381 psi. Initial productivity from the Bluesky zone was 3.0 mmcf/d and after eight months of production the rate is stabilizing at approximately 1.0 mmcf/d.
The Bluesky pool is interpreted to be geologically analogous to the offsetting Bluesky pools within the Edson Multi-zone Unit #1, which has produced more than 215 bcf of natural gas. GLJ Petroleum Consultants Ltd., the Company's independent reserve evaluator, has assigned 3.6 bcf of original-gas-in-place to the Bluesky zone in the 7-26 well over an 80-acre area.
Development drilling, utilizing recently acquired proprietary 3D seismic, will determine the areal extent of the Bluesky discovery within the Company's extensive land position. Drilling plans to year-end include three gross (1.3 net) wells in sections adjoining the discovery. It is estimated that with continued drilling success this pool could be developed at a minimum drilling density of two wells per section.
Discovery in the Montney Formation
In June, Open Range operated a 50 percent working interest Montney Formation sour natural gas discovery at 2-3-54-19W5M. This well encountered 2 metres of net gas pay at reservoir pressure of 3,628 psi. The well was completed and tested at a rate of 1.0 mmcf/d. Several nearby Montney gas pools have ultimate reserve potential ranging from 2-10 bcf. Sour gas tie-in options in the area are currently under review with production expected to commence in 2007.
Pool Extensions in the Notikewin and Cardium Formations
Reservoir quality sands within the Notikewin Formation have been encountered on six sections of Company-interest lands and are on production from three Company-operated wells that also produce natural gas from the Cadomin Formation. Sand net pay ranges from 3 to 10 metres at an average reservoir pressure of 3,485 psi. The Notikewin sands are believed to be part of an extensive gas-saturated channel fairway which trends through Company lands. Current production rates from the Notikewin range from 0.1 to 0.6 mmcf/d.
Open Range has also drilled two 37.5% working interest wells which encountered Cardium natural gas pay. These results indicate a possible eastward extension of the prolific Ansell Cardium trend onto Company lands. The Company expects that by year-end the EUB will pass new commingling regulations in the area allowing for certain zones to automatically qualify for commingling. Consequently, these Cardium zones will be considered for completion and commingling in 2007.
Devonian Gas Exploration Potential
The Ansell/Sundance area has significant potential for large Devonian natural gas pools in multiple zones, including the Leduc, Nisku, Blueridge and Wabamun. The Company's operating area is offset by Devonian pools hosted in these horizons which range in size from 20 to 300 bcf.
Open Range currently has an interest in over 34 sections of land at Ansell/Sundance with an average working interest of 45%. Twenty-one (21) of these sections include Devonian mineral rights. Several leading exploration companies have initiated drilling operations to evaluate Devonian gas prospects adjacent to Company lands. Open Range's recent acquisition of more than 75 square miles of proprietary 3D seismic places the Company in an excellent position to explore the Devonian potential. To date two prospects have been identified, one of which is being considered for drilling in 2007.
Inventory and Upcoming Drilling Plans
To date Open Range has discovered and evaluated five productive pay zones. Based on these initial results and the Company's interpretation of its 3D seismic, Open Range has amassed a reduced-spacing development drilling inventory of approximately 25 locations.
Open Range has identified four drilling locations with multi-zone potential at the Ansell/Sundance property for the second half of 2006, the first of which has been cased and is awaiting completion. These drilling locations are the first to benefit from the Company's extensive 3D seismic coverage. The Company is presently preparing its 2007 drilling schedule which is expected to include a balance of infill development locations, step outs and exploratory drilling.
OPEN RANGE ENERGY CORP. IS A PUBLICLY TRADED CANADIAN ENERGY COMPANY INVOLVED IN THE EXPLORATION, DEVELOPMENT AND PRODUCTION OF NATURAL GAS AND CRUDE OIL IN WESTERN CANADA.
Reader Advisory
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control, including: the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Open Range will derive there from. All amounts are denominated in Canadian funds unless otherwise specified.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
Open Range Energy Corp.
A. Scott Dawson, P.Eng.
President and Chief Executive Officer
(403) 205-3704
Website: www.openrangeenergy.com
