New Sage Energy Announces Successful Completion of Peltier #2 Well
September 21 2010 - 8:30AM
Marketwired
New Sage Energy Corp (TSX VENTURE: NSG) ("New Sage") is pleased to
announce the completion of the Valentine Field, Peltier #2 well.
This is the third development project between New Sage and Gulf
South Operators of New Orleans, Louisiana. New Sage has a 10%
working interest in the well and the project.
Peltier #2 was drilled within the well known Valentine Field and
targeted approximately 430,000 barrels of oil from as many as six
zones. The well encountered six potentially productive zones
beginning with the R-sand, with no associated oil or water. It was
noted during the prospect review that individual sands, had
significant oil production (between 100,000 and 400,000 bbls oil)
from several wells in the Valentine field.
The well is expected to be tied into a local pipeline and put
into production. The gas cap within the currently completed zone
will be produced and production from the well is anticipated to
change from gas to oil in a relatively short time following hook-up
of the well.
"We are very encouraged by the initial results to date on the
Peltier #2 well, which continues our track record of success with
GSO" said John Carlesso President and CEO. "Additional results are
expected shortly following the testing of the sands that had oil
showing during the initial drilling phase".
Peltier #2 well was completed at a depth of 8,500', production
casing was perforated between 8486' and 8497' across the R-sand
that had a minimum of five feet of net pay characterized by an
average of 25% effective porosity with gas and condensate detection
and low water saturations (20 to 24%) on side wall core analyses.
Successive zones include the R-sand upper (4'), O and O-2 sands
(10'), N-sand (8') and M-sand (5') that have moderate to high
porosities indicated on logs with condensate and oil saturations
detected on side wall core analyses. These sands are expected to
produce condensate initially, followed by oil once they are
completed and put into production.
Reservoirs within Louisiana are very young and porous with
moderate to high permeability, which translates into reservoirs
that produce gas, condensate and oil very quickly. Multiple zone
completions are required for each well, which can provide the
benefit of higher reserves per well and final net revenues. An
operator in the Gulf Coast and its working interest owners can
achieve pay-out of the well or project with a high rate of return
within a relatively short time compared to other conventional oil
and gas plays within older sedimentary basins because these
reservoirs are not as prolific.
New Sage continues to look at additional opportunities in the US
Gulf States and across North America.
About New Sage
New Sage is a Canadian oil and gas exploration and development
company with a focus on opportunities in the US Gulf States region
and South America. The company is building a portfolio of
production, through exploration and development opportunities with
established joint venture partners.
Forward-Looking Statements: This news release contains
forward-looking statements that involve risks and uncertainties.
Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by New Sage. The forward-looking
statements or information contained in this news release are made
as of the date hereof and New Sage does not undertake any
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 mcf: 1 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.
Neither the TSX Venture nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture) accepts
responsibility for the adequacy or accuracy of this release.
Contacts: New Sage Energy Corp. Eric Fredrickson (416) 309-4320
info@newsage.com
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