DGAP-News: Activa Resources AG steps up drilling operations
(firmenpresse) - DGAP-News: Activa Resources AG / Key word(s): Miscellaneous
Activa Resources AG steps up drilling operations
12.01.2011 / 08:17
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NEWS RELEASE 12th JANUARY 2011
Activa Resources AG steps up drilling operations
- Activa is aiming for substantial production increases in 2011 and 2012
- Preparations completed for multi-project drilling programme in 2011
- Oil drilling operations start at Adams Ranch field in Texas
- Tests begin at Gray Waterflood prospect in Louisiana
Bad Homburg, 12th January 2011. Activa Resources AG provides the following
update regarding drilling operations at its four key US onshore assets -
OSR-Halliday, Adams Ranch, Gray Waterflood and Loma Field. A broad drilling
programme in 2011 has begun in recent weeks. Together with the planned move
up-hole to the main pay zone at the Sunny Ernst No. 2 well in the Loma
Field during the first half of 2011 the drilling activities are expected to
materially increase Activa's production, revenues and profitability in 2011
and 2012.
At Adams Ranch, where Activa already successfully produces natural gas, oil
drilling activity has now begun. On 15th December 2010 Activa spudded the
Adams Ranch WF1 well which is being drilled to a depth of 400 feet to
target the Escondido oil zone. Activa plans to implement a waterflood
programme to produce the heavy oil from these shallow depths. Waterflooding
has been estimated by Cobb&Associates, independent petroleum engineers,
to achieve in excess of 20% recovery rates of 'Original Oil In Place'
(OOIP) of over 13 million barrels. With a working interest of 92 % this
equates to a potential of over 2 million barrels net to Activa. The initial
WF1 well will be followed by 9 additional new wells during the first half
of 2011. This pilot program will comprise 2 blocks each with 1 injection
well and 4 production wells. The results of the waterflood pilot programme
are expected be known in the third quarter of 2011. Full implementation of
the waterflood programme in the field would see Activa drill over 100 wells
in the coming years.
At OSR-Halliday (22% working interest) the new H-12 well in the northern
section of the field (see News Release November 10th, 2010) continues to
produce strongly and supports the pre-drill expectations that over 400,000
BO can be produced from the well. Activa and its project partners are
preparing to drill a new horizontal well in the southern section of the
field during the first half of 2011. The Woodbine reservoir in the southern
half is much thicker and has a significantly larger quantity of oil in
place. Superior results are therefore expected. Overall, Activa and its
partners are aiming to 'prove-up' some 18.6 million barrels in economically
producible oil reserves.
Field activity has commenced at the Gray Waterflood prospect in Louisiana
(working interest 55%), where Activa is also targeting crude oil. The
re-entry of an existing wellbore as the production well has now begun and a
new injection well will be drilled in February. With positive results
Activa expects to fully develop the field by the summer of 2011. The full
waterflooding programme will comprise 5 additional wells. Activa and its
partners in the project estimate the potential of the prospect at 2 million
barrels.
With the exception of Loma Field, the new drilling activities are targeting
oil reserves. Drillingsuccesses in 2011 are therefore expected to tilt
Activa's oil/gas production mix more towards oil. Management expects oil
prices to continue to be more stable and relatively stronger than US
natural gas prices in 2011.
Following to the recent switch by many of the company's bondholders into
the new Activa Resources AG 8% corporate bond in December 2010, management
expects to complete its current refinancing in the near future.
The Management Board
Queries: Leigh A. Hooper, CEO, Tel. +49 6172 483 2352
About Activa Resources AG
Activa Resources AG is an independent oil and gas company which focuses on
the acquisition, development and exploitation of oil and natural gas
properties. Activa Resources AG is listed on the Frankfurt stock exchange
and is based in Bad Homburg, Germany. The company's management and
technical team comprise oil industry experts with many years operational
experience at major international oil companies. Further information can be
found at www.activaresources.com.
Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected drilling and development wells and associated costs, statements
relating to estimates of, and increases in, production, cash flows and
values and other statements which are not historical facts. When used in
this document, the words such as 'could,' 'plan,' 'estimate', 'expect',
'intend', 'may', 'potential', 'should' and similar expressions are
forward-looking statements. Although Activa believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ
from these forward-looking statements include the potential that the
Company's projects will experience technological and mechanical problems,
that geological conditions in the reservoir may not result in commercial
levels of oil and gas production, that changes in product prices can have a
material impact and that Activa fails to raise sufficient capital to
adequately fund its activities.
End of Corporate News
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108687 12.01.2011
Datum: 12.01.2011 - 08:17 Uhr
Sprache: Deutsch
News-ID 32987
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