SASKATOON, SASKATCHEWAN – (FSCWire – September 20, 2017) Westcore Energy Ltd. (“Westcore” or the “Company”) (TSXV: WTR) is pleased to provide the following update on its oil and gas activities.
Joint Venture Drilling
Westcore has now finished completion activities on the three joint venture wells on its Flaxcombe property with its partner Eros Resources Corp. (“Eros”), with all three wells now on production. The first well, 9-13, has been on production in excess of 30 days, with initial results showing an average rate of 80 barrels of oil per day (8 net to Westcore). The other two wells, 6- 13 and 1-13, have not yet been on production for 30 days, but initial results are encouraging at both locations. Under the terms of the joint venture agreement, Westcore’s partner, Eros, is entitled to a 90% working interest in the joint venture wells until its investment is recovered and a 50% working interest thereafter. Additionally, Eros maintains a right of first refusal to participate on the same terms on two subsequent drill programs to be drilled on the same lands, to a maximum of $1,600,000 per future drill program.
As was announced on July 12, 2017, Westcore entered into a joint venture with Saturn Oil & Gas Inc. on the re-completion of 1-13B, an existing well on Westcore’s land at Flaxcombe. Recompletion operations at this site are now finished, and the well is on initial production. Under the terms of the joint venture agreement, Westcore is entitled to a 50% working interest in the re-completed well.
Results from the drilling program with Eros and the recompletion with Saturn are very encouraging and further increase Westcore’s confidence in attaining its objective of confirming economic quantities of heavy oil in place in the Lower Manville Group Success Sand Formation at its Flaxcombe property.
As was announced by press release on March 27, 2017, Westcore initiated production at its 100% owned 10-13 well in the Flaxcombe field. Results from the 10-13 well have substantially exceeded management’s expectations, with production averaging in excess of 150 barrels of oil per day.
The total combined field estimate of production is approximately 275 barrels of oil per day net to Westcore.
For the remainder of fiscal 2017, Westcore intends to continue growing its production through the re-initiation of additional wells in the Flaxcombe field, along with the re-completion program with its partners.
In the first three quarters of fiscal 2017, Westcore has added interests in 5 (net 2) sections that are adjacent or adjoining the original land package at Flaxcombe. Along with its partners, Westcore is planning an exploration and development program on these additional lands. Work is expected to commence in the fourth quarter of 2017. Westcore’s total land holding at Flaxcombe is now 5 net sections.
Westcore is pleased to announce that Mr. Andrew Davidson, a current director, has been appointed President and CEO of the Company, replacing Paul Conroy who is stepping down to pursue other endeavours.
Additionally, Westcore is pleased to announce that Mr. Tom MacNeill, a current director, has been named Executive Chairman of the Company.
Westcore expresses its most sincere thanks to Mr. Conroy for his many years of devoted commitment and contributions to Westcore. Mr. Conroy will remain on the board of directors.
We seek Safe Harbor
FOR FURTHER INFORMATION PLEASE CONTACT:
Westcore Energy Ltd.
Vice President and Chief Operating Officer
Phone: (306) 653-2692
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward-looking information in this press release includes, but is not limited to, the 3 well drilling program that is referenced herein, shut-in production potentially being re-initiated and the earning of interests by Eros in Westcore’s Flaxcombe field. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, governmental regulation, including environmental regulation; commodity prices; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
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