Native American Energy Group Issues Progress Update on Five-Well Workover Program in Montana
December 21 2011 - 9:17AM
Marketwired
Native American Energy Group, Inc. (OTCQB:
NAGP) (PINKSHEETS: NAGP), an independent energy resource
development and management company, is pleased to provide the
following operational update on its recently announced five-well
workover program of the Company's lease holdings located in the
Williston Basin in northeastern Montana:
Wright 5-35 Well In early December, NAGP
completed the initial workover of the Wright 5-35 well, located on
the Company's 160-acre lease in McCone County, Montana. Further,
field crews successfully upgraded the electrical systems which
power the surface equipment, replaced the pad under the pumpjack
and winterized the well site. Following the completion, which
included the application of highly advanced multi-lateral jetting
technology, the Wright well is now in commercial production and
currently generating approximately 24 barrels of 36 degree API
Gravity Oil per day. The production on the Wright 5-35 prior to
originally being shut-in during 1995 was nine barrels of oil per
day (BPOE). Well testing during the completion stage exhibited an
oil cut (difference between oil and water) ranging from 25% to 50%.
Based on the well test which included swab testing, NAGP believes
the production will slowly increase as the well stabilizes.
Beery 2-24 and Beery 22-24 Wells Both
Beery 2-24 and Beery 22-24 are situated on NAGP's 320 acre lease in
north McCone County, and located in an oil and gas field originally
discovered by Shell Oil in the early 1950s. Beery 22-24 was first
drilled and completed in 1953 and is the only original well drilled
by Shell that remains in the field today. This well was the second
largest producer in the East Richey Field, producing 2300 BPOE
during its active production life. Beery 2-24 was originally
drilled and completed by Dick Shackelford and Edward Beery in 1980
and initially produced 24 BOPD. The Beery property produced
approximately 350,000 barrels of the two million barrels of
cumulative oil produced in the entire field.
NAGP is currently engaged in the workover, lateral jetting and
winterization of the Beery 2-24 and has recently installed a new
heater treater at the tank battery location. Since the jetting of
the initial short laterals combined with a proprietary chemical
blend, the down-hole pressures have increased significantly and the
well has been flowing in excess of five barrels of oil and a
significant amount of gas every morning when the well is bled off
for daily operations. The swab tests indicate a consistent 50% oil
cut from total fluids. Due to these characteristics of the well,
NAGP is modifying its completion plan for the well to include
lengthening of current laterals and/or the application of an
engineered acid treatment specific for this well.
Notwithstanding harsh weather conditions that may inhibit NAGP's
ongoing field operations, the workover of the second well, the
Beery 22-24, is expected to commence in January.
Sandvick 1-11 After jetting the laterals
in the Ratcliffe formation, almost immediately, approximately 60
barrels of oil flowed back into the pits on location which
indicated that NAGP definitely stimulated the pay zone. Swab
testing showed a 30% oil cut from total fluids. The well was
brought online for production in November at which time it
exhibited strong oil production -- during the initial 18 hours the
well was in production, it produced approximately 80 barrels of
oil. However, a packer installed to close off a casing leak from a
water zone above the oil zone lost integrity and allowed water to
migrate into the wellbore which overpowered the pay zone.
Consequently, NAGP plans to re-enter the well during the early
spring of 2012 and recomplete the well by applying a cement squeeze
into the casing to close off the water zone.
Cox 7-1 The workover of the Cox well was
completed in late September and the well was brought online after
delivery and installation of a heater treater. During the well
workover process, a casing bit scraper was run down-hole on several
occasions to clean out the casing as part of the rework process.
Although the scraper run was successful, a tight spot was
repeatedly encountered at 5820 feet in the Kibby section of the
Mississippian which is a known water producer. After the well was
completed, with good results in the Mission Canyon section at about
6400 feet, approximately 500 feet below the Kibby section, an
increase in water production, not consistent with the well test
results, was experienced. After monitoring the water production for
three weeks, it was determined that the water was coming from the
Kibby zone. At that time, the well was shut-in.
Consequently, NAGP plans to re-enter the well during the early
spring of 2012 and recomplete it by implementing a casing patch
operation.
Commenting on the Company's field operations, Doyle (Tony)
Johnson, Chief Geologist & Petroleum Engineer at NAGP, stated,
"Although we're re-entering mature wells ranging from 30 to 50
years old, the application of new technologies to these wells is
reaching out further into these pay zones to access more of the oil
in the reservoirs than the original completions in the past. Having
been a part of many EOR projects during my 38 year career, I am
very impressed with the results we are achieving with the various
technologies we are applying on these wells, specifically the
multi-lateral jetting technology provided by SEMJET International
Limited. This hands-on experience has broadened my prospects for
viable EOR candidates for future lease acquisitions of the
Company."
To view videos of the workover operations filmed at the well
sites, visit NAGP's video gallery at www.nativeamericanenergy.com/media/video-gallery
and its YouTube page at www.youtube.com/nativeamericanenergy.
About Native American Energy Group, Inc.
Native American Energy Group, Inc. is a New York-based, energy
resource development and management company with three principal
projects: development and management of its oil & gas interests
and operations in the Williston Basin, Montana; development of
coal-bed methane natural gas ("CBM") in the Cook Inlet Basin in
Alaska; and planned implementation of vertical-axis wind turbine
power generation technology for the production of clean,
cost-efficient green energy throughout the USA, including Alaska
and on all U.S. Native American tribal lands. The Company uses its
web site as a channel of distribution of material company
information. Financial and other material information regarding the
Company is routinely posted on and accessible at www.nativeamericanenergy.com or via email NAGP@efcg.net.
Forward-Looking Statements This release,
as well as media publications and videos accessible on our website
and YOUTUBE channel referred to in this release, include
"forward-looking statements" as defined by the Securities and
Exchange Commission ("SEC"). These forward-looking statements
represent the Company's present expectations or beliefs concerning
future events. The Company cautions that such statements are
necessarily based on certain assumptions which are subject to risks
and uncertainties, including, but not limited to, the timing and
extent of changes in commodity prices for oil and gas, drilling,
development and operating risks, counterparty risk, competition,
environmental risks, litigation uncertainties, the availability of
drilling rigs, workover rigs and other support services,
legislative and/or judicial decisions and other government or
Tribal regulations which could cause actual results to differ
materially from those indicated herein. Further information on our
business, including the risks inherent therein, is included in our
filings with the SEC.
Add to Digg Bookmark with del.icio.us Add to Newsvine
FOR ADDITIONAL INFORMATION, PLEASE CONTACT: Elite Financial
Communications Group, LLC Dodi Handy President and CEO
(Twitter: dodihandy) For Media: Kathy Addison COO (Twitter:
kathyaddison) (407) 585-1080 Email Contact