Calgary, Alberta (February 11, 2014): Guardian Exploration ("Corporation") (TSXV: GX) is pleased to announce that its joint venture well with Deckland Inc., Deckland Hz 6-16, has had a downhole evaluation and been equipped with a pump. An advanced array of downhole logging tools analyzed the horizontal section of the well. The data, in conjunction with 3-D imagery, identified potential fractures and areas of isolation to maximize oil production. Attempts were made to set a multistage packer assembly in the identified areas but operational issues suspended completing the planned procedure until a future time. The well was then equipped with a downhole pump and flowed for a period of one month. After flowing for a month, the well was shut-in to maximize the time left in its 18 month royalty holiday rate of 5%. At present, operating costs for this well are quite high due to processing, disposal, and trucking fees. Guardian anticipates producing the well again once it has reached an agreement with a nearby operator for water separation and disposal so that profits from the sales revenue can be maximized and used to drill other locations in the area. Plans are also underway to re-enter the wellbore in the near future to permanently set the string of packers, as initially attempted, to minimize water production and increase oil recovery.
Over the one-month production period, the well produced a total of 1,697 barrels of oil, or an average of 57 barrels of oil per day ("bopd"). Net 28 bopd to Guardian. Management was satisfied with this rate given that wells in this area typically peak in production after several months of being on pump and any future isolation of the identified fractures should also have a positive effect on the rate of production.
Cut Bank, Montana
As previously disclosed in the July 15, 2013 news release, Guardian's wholly owned subsidiary, K2 America Corp ("K2"), failed to drill its commitment well with the Blackfeet Tribe by the deadline date of July 10, 2013. As per the terms of the settlement agreement, in which the commitment well was part of K2's wells and leases located on Blackfeet land, have been given to the Blackfeet Tribe. K2 still owns and operates several wells in the Cut Bank area that are located on privately owned fee leases as well as leases in other parts of Montana that have been acquired from the State of Montana.
Guardian is a Calgary-based corporation engaged in the acquisition, exploration and development of resource properties in Alberta and the State of Montana. Common shares of the company trade on the TSX Venture Exchange under the trading symbol "GX".
For further information, contact:
Graydon Kowal
President and CEO
(403) 269-5870
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.
This release includes certain statements that may be deemed "forward-looking statements". Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.
Barrel of Oil Equivalent Presentation - Natural gas is converted to a barrel of oil equivalent ("boe") using six thousand cubic feet ("mcf") of natural gas equal to one barrel of oil unless otherwise stated. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one barrel ("bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Natural Gas Liquids ("NGL") are reported in barrels directly.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.