CALGARY, AB--(Marketwired - February 02, 2016) - Stonehaven Exploration Ltd. ("Stonehaven" or the "Company") (TSX VENTURE: SE) provides an update on wells three and four in the four well Wilson Creek, Alberta Belly River development and exploration farm-in program that commenced in Q4 2015. As a result of drilling and completing all four wells in the program, Stonehaven has earned an interest in all four wells and associated lands.
The third well in the program is an exploration horizontal well located at 02/13-17-42-3 W5M (the "02/13-17 well") targeting a Belly River channel prospective for light oil. The 02/13-17 well was drilled and completed with fifteen 20 tonne fracs and tested for ten days with final day average gross flowing rates of approximately 1.06 mmcf per day of natural gas at 390 psig tubing pressure, 5 barrels per day of oil and 208 barrels per day of load fluid and formation water. The 02/13-17 well had recovered approximately 51% of load fluid when it was shut-in. (SE: 90% BPO; 60% APO)
The fourth well in the program is an exploration horizontal well located at 02/01-17-42-3 W5M (the "02/01-17 well") targeting the Basal Belly River interval for light oil. The 02/01-17 well was drilled and completed with twenty-six 20 tonne fracs and swab tested for 9 days recovering trace amounts of natural gas and approximately 25% of load fluid prior to being shut-in. Further testing on the 02/01-17 well is expected to occur in Q1 2016 subject to ground and weather conditions. (SE: 90% BPO; 60% APO)
The Company advises that initial test results are not necessarily indicative of long-term performance or of ultimate recovery from the wells.
At Bigstone, Alberta, Stonehaven has re-activated one of its three operated horizontal Montney wells. The well is currently producing intermittently subject to processing and transportation restrictions.
The Company also reports that on or about February 10, 2016, it will mail out its Information Circular and related materials with respect to its annual and special meeting of shareholders scheduled for March 9, 2016.
Stonehaven will consider strategic alternatives and the maximization of shareholder value and which alternatives may include acquisitions, dispositions and/or exchange of assets, recapitalization or mergers with other companies. Except as required by law, Stonehaven does not intend to disclose developments with respect to strategic alternatives until the board of directors of the Company has approved a definitive transaction or strategic alternative. The Company cautions that there are no guarantees that a transaction will be undertaken or a strategic alternative pursued.
Stonehaven has a net cash position of approximately $3.1 million, is debt free and is currently producing approximately 275 net boe per day (approximately 27% oil). Stonehaven has working interests at Bigstone, Fir and Wilson Creek, Alberta.
Further information relating to Stonehaven is also available on its website at www.stonehavenexp.com.
ADVISORY ON FORWARD-LOOKING STATEMENTS:
This news release contains certain forward-looking information and statements ("forward-looking statements") within the meaning of applicable securities laws. In particular and without limitation, this news release contains forward-looking statements concerning the timing of further testing of the Company's 02/01-17 well at Wilson Creek and the Company's consideration of strategic alternatives and the maximization of shareholder value.
Forward-looking statements are based on a number of material factors, expectations or assumptions of the Company which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Additional information regarding some of these risks, expectations, assumptions and other factors may be found in the Company's Annual Information Form and Management's Discussion and Analysis prepared for the year ended December 31, 2014. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (6 mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
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