ALTACANADA BAKKEN AND JURASSIC DRILLING ACTIVITY
November 01 2010 - 4:31PM
PR Newswire (Canada)
CALGARY, Nov. 1 /CNW/ -- TSX-V SYMBOL: ANG CALGARY, Nov. 1 /CNW/ -
Under a farmout arrangement with our industry partner, AltaCanada
operated and participated in two wells on its substantial Montana
block comprising approximately 390,000 contiguous gross acres to
evaluate oil potential in the Shaunavon and Bakken formations. The
two wells were drilled 22 miles apart. A. A Bakken stratigraphic
test well, 12B-26, was drilled to 4720' and a 60-foot core was
taken over the entire Bakken interval. Through a farmout
arrangement of a 9 section block, we participated for 12% of
drilling and completion costs, retaining a 30% interest in the
farmout block. In preliminary core analysis, 4 of 22 plug samples
showed oil saturation of greater than 10% with maximum saturation
of 24%. Log evaluation indicated an average porosity of 6.2% and a
maximum of 16% over the Bakken interval. Reservoir quality in the
Bakken sequence was present and better than expected. The analyzed
oil show in the uppermost Bakken sand clearly supports the
hypothesis that oil migrated through this basin leading to the
possibility that significant Bakken oil is trapped against the
updip truncated edge on AltaCanada's existing land base. Further
drilling is anticipated. The farmee retains a rolling option, with
election in 90 days, to earn additional 9 section blocks by
drilling another well paying 80% of our costs for 50% of our
interest. The well was cased for evaluation of uphole shallow gas.
B. A Lower Shaunavon test well, 7-2, was drilled to 4300´ on a 3-D
seismic feature, and penetrated 12 feet of greater than 9% porosity
in the Shaunavon sand and contained significant oil saturation in
the core. However, the Shaunavon sand was encountered approximately
15 feet lower than anticipated on seismic. As a result, upon
completion this well produced mostly water with oil cuts reaching a
maximum of 30% before falling off. The well is presently suspended.
Based upon the company's limited seismic program to date, there are
14 additional 2-D seismic anomalies that have been identified on
the company's lands. Future drilling activity will be directed to
targets higher structurally to achieve commercial oil production.
The Bakken well and the Lower Shaunavon well represent significant
developments for AltaCanada. Prior to pursuing these oil targets,
AltaCanada was focused upon building a large land base in Montana,
drilling low risk shallow natural gas targets and putting in place
production infrastructure. Following the international financial
crisis and a sustained period of low natural gas prices AltaCanada
became substantially inactive and there was serious erosion of the
value of the company's equity and of our borrowing base with the
National Bank. AltaCanada commenced a strategic sales process with
CIBC World Markets in September of this year to either sell
AltaCanada, find suitable merger candidates, or locate investment
capital to reorganize the Corporation. Proposals are due on
November 2(nd). One hundred and eleven companies have been
contacted through this process. An extension of our fourth Amended
and Extended Forbearance Agreement was executed on October 29, 2010
including consent to a receivership order that could be exercised
by the Bank if the strategic process is not successful in the
Bank's discretion on November 2, 2010. As described in our
quarterly report, we have no assurance that the Bank will continue
to provide financing. The Bank has cooperated with Alta Canada in
permitting the Company to proceed with the current drilling
program. The Corporation is engaged in the acquisition,
exploitation and production of crude oil and natural gas reserves
in Western Canada and Montana. For more information on the
Corporation, visit www.altacanada.com. NEITHER THE 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. To
view this news release in HTML formatting, please use the following
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table border="0"trtd /td tdDon Foulkes, President &
CEO /td tdDon Jackson, Exec VP & COO/td/tr
trtdTelephone:/td td(403) 265 9091 (ext 248)/td td(403) 265 9091
(ext 234)/td/tr trtdFax:/td td(403) 265 9021/td td(403) 265
9021/td/tr trtdEmail:/td tda
href="mailto:Info@altacanada.com"info@altacanada.com/a/td tda
href="mailto:Info@altacanada.com"Info@altacanada.com/a/td/tr/table
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