CALGARY, AB / ACCESSWIRE / June 28, 2017 / Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Company" or "Emerald Bay") announced today that the Company has entered into an agreement whereby Emerald Bay will spend $1,270,194.56 U.S. ($1,689,358.76 Cdn.) to increase its ownership in the Wooden Horse and Nash Creek projects in Guadalupe County, Texas from 27.78% to 50%.
The Company will use funds from the previously announced loan facility agreement (see press release dated June 6, 2017) to facilitate the purchase with an effective date of June 1, 2017 and anticipated closing date of July 15, 2017.
The Company considers this purchase to be strategic, as the increased ownership percentage will enhance the Company's ability to move the projects forward to the next phases of development.
At Wooden Horse, the Company has drilled and tested 1 horizontal and 3 vertical test wells to date in the Edwards, Buda, and Austin Chalk formations. Additionally, the Company has drilled and completed a successful salt water disposal well and the tank battery is in place for future development. The Company also completed an extensive 3D Seismic program and drilled the Kuhn 3 well in 2016.
The Kuhn 3 well has recently been completed in the Austin Chalk formation and flow testing began on June 5, 2017. The well is flowing approximately 212bbls/day of total fluid with associated gas. Based on results from an offset well, the Company anticipates that, in the coming weeks and months, the natural gas volume will decrease and the oil cut will increase. At that point, the Company will add a pumpjack or submersible pump to begin commercial production or, alternatively, drill a short radius horizontal wellbore to increase production volume.
The Kuhn 1H horizontal well was drilled several years ago and to date is not commercially viable. At the time that Kuhn 1H was drilled, the decision was to complete the horizontal section in one of two possible intervals, the Edwards A Zone or the Edwards C Zone. Although the A Zone had significantly higher permeability and porosity, as well as higher hydrocarbon content, the decision was made to drill the horizontal in the C Zone primarily because the C zone was thicker than the A Zone and there were concerns at the time about the directional drilling tools ability to stay in the A Zone. The Company has been in recent discussions with several directional drilling companies about the technological advancements over the past few years that have greatly increased their ability to stay in zones like the Edward A Zone. Furthermore, recent successes of other companies, now producing in the Edwards A zone, has encouraged the Company to focus efforts on raising the capital to move forward with plans to recomplete the Kuhn 1H well in the A zone or drill an entirely new horizontal well. A recompletion of Kuhn 1H in the A zone would cost approximately $300,000 ($150,000 net to the Company). A new Edwards horizontal in the A zone would cost approximately $600,000 ($300,000 net to the Company).
Subject to financing, the Company also has plans in place to drill short radius horizontal legs in the Edwards A zone of the Kuhn 2 vertical well in July or August at a cost to the Company of approximately $60,000.
At Nash Creek, the Company acquired the lease with an existing well on the lands that has produced over 60,000 barrels of oil since it was originally drilled in 1937. The Company completed an extensive 3D seismic program over the lands in 2016 and two test wells have now been drilled to acquire sonic log and amplitude confirmation. Completion operations of the BeauMar 1 well are now underway as the oil "fingerprint" compares to the existing producing well on the lands. Subject to financing, the Company plans to drill short radius horizontal legs to the fault detected by the 3D seismic in the BeauMar 1 well in July or August at a cost to the Company of approximately $68,000.
About Emerald Bay
Emerald Bay Energy Inc. (EBY)is an energy company with oil producing properties in southwest Texas as well as non-operated oil, natural gas, and electricity generation interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where the Company currently now owns a 50.00% working interest in those projects. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
To stay informed on Emerald Bay Energy, please join our Investor Group at www.8020connect.com for all upcoming news releases, articles, comments and questions.
For further information, please contact:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000
Email: [email protected]
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 use of proceeds of the aforementioned equity financing. 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; andand other risks detailed in the Company's periodic report filings with the applicable securities regulators. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Emerald Bay Energy Inc.
Copyright © 2017 accesswire. All Rights Reserved., source Press Releases