Petroforte International Ltd. Provides Update on Operational and
Other Matters
CALGARY, ALBERTA--(Marketwired - Feb 14, 2014) - Petroforte
International Ltd. ("Petroforte" or the "Corporation")
(TSX-VENTURE:PFI) is pleased to provide the following updates on
operations and other matters.
Flood, Alberta
In January of 2014, two wells were drilled at the Corporation's
Flood property, where the Corporation holds a 100% working
interest.
The 1-7-85-24W5 well was drilled as a water disposal well. The
1-7 well drilling costs of approximately $475,000 were below budget
expectations. Completion of the well is currently underway and an
application for the well to be approved as a water disposal well
will be submitted to the Alberta Energy Regulator (the "AER").
A vertical potential Montney oilwell was drilled at 5-8-85-24W5.
The 5-8 well drilling costs of $500,000 were below budget
expectations.
If the AER approves the application for the 1-7 well to be used
as a water disposal well, the 5-8 well will be placed on production
and three other currently shut-in Montney oilwells on the Flood
property will be reactivated.
The existing battery is being upgraded to include an injection
pump and recycle pump for the water disposal system. The existing
and related tank farm is also being modified to treat the oil/water
emulsion and dispose of excess water.
The Corporation expects to drill two more vertical Montney
oilwells by the end of Q2, 2014 at the Flood property.
Brazeau River, Alberta
The Cardium Formation in the 2-5-48-14W5 well at the
Corporation's Brazeau River property, where the Corporation holds a
100% working interest, was perforated and fracture stimulated in
January of 2014. The well commenced oil production on February 5,
2014. Initial field production rates averaged 75 BOE per day during
its first four production days. Given the limited production to
date at the 2-5 well, the initial four day average production rate
is not necessarily indicative of long-term performance or ultimate
recovery.
The 2-5 well is the second successful Cardium recompletion well
the Corporation has at Brazeau River.
The Brazeau River 9-5 well, which was placed on production on
October 19, 2013, is currently producing at an average of
approximately 170 BOE per day over the last 30 production days.
Petroforte acquired a 100% working interest in the SE quarter of
Section 13-48-16W5 for Belly River oil potential on December 18,
2013 from the Alberta Government's land sale process for $78,000.
The rights acquired are from surface to base Cardium.
Wapiti, Alberta
Drilling commenced on a farm-in well at 9-21-67-8W6 on January
29, 2014. Rimfire Energy Inc. granted Petroforte a one month
extension to spud the well due to rig availability issues.
The 9-21 well has reached the beginning of the horizontal leg in
the Cardium Formation and casing has been set.
The 1,400 meters horizontal section of the well is being drilled
and on February 12, 2014 the well penetrated a minimum of 400
meters. Pursuant to the farm-in agreement with Rimfire, the effect
of this event is that Petroforte has earned a 70% working interest
in the well and a 70% working interest in the northern half of
Section 21 (where two other potential Cardium wells may be drilled)
and an additional one and a quarter section of undeveloped land in
the Wapiti area.
Effect on Reserves
The Corporation has not received sufficient information to allow
it reach a conclusion regarding the effect of these developments on
its reserves. It will report on reserve additions as part of its
annual reserves disclosure later this year.
December Production
During the month of December 2013, the Corporation realized
average daily sales volumes of approximately 430 BOE per day,
comprised of 60% natural gas and 40% oil and natural gas
liquids.
Private Placement Update
On January 14, 2014 Petroforte closed the second tranche of its
private placement offering previously announced on December 12,
2013 and issued 1,875,000 equity units for gross consideration of
$375,000, each unit consisting of one common share of the
Corporation and one half of a common share purchase warrant. Each
whole warrant entitles the holder to purchase one common share for
$0.40 per share for a period commencing on the date of issuance and
ending on March 31, 2016.
The Corporation wishes to clarify that on December 23, 2013 it
issued 16,000,000 units for gross consideration of $3,200,000
rather than 17,875,000 units for gross consideration of $3,575,000
as indicated in its press release dated December 30, 2013. Together
with the first tranche, the Corporation has issued a total of
17,875,000 units under the offering announced in December for gross
consideration of $3,575,000.
Closing of the offering has received conditional approval by the
TSXV and is still subject to final approval by the TSXV. All
securities issued in connection with the Offering are subject to a
four-month hold period.
Management Update
Harry Knutson resigned as a director and officer of the
Corporation on February 13, 2014. Effective immediately he will
join the Corporation as Manager, Business Development and will take
responsibility for developing and implementing acquisition
transactions that will contribute to the Corporation's ongoing
growth.
About Petroforte
Petroforte is a junior oil and gas company headquartered in
Calgary, Alberta engaged in the exploration, development and
production of hydrocarbons in Alberta.
Forward Looking Statements
Certain information in this press release constitutes
forward-looking statements under applicable securities law. Any
statements that are contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expects",
"estimates", "seeks" and similar expressions.
Forward-looking statements necessarily involve known and
unknown risks, including, without limitation, risks associated with
oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, failure to
realize the anticipated benefits of acquisitions, delays resulting
from or inability to obtain required regulatory approvals, changes
in legislation including but not limited to income tax,
environmental laws and regulatory matters, and ability to access
sufficient capital from internal and external sources. Readers are
cautioned that the foregoing list of factors is not
exhaustive.
Readers are cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
Additional information on these and other factors that could
affect Petroforte's operations or financial results are included in
Petroforte's reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website
(www.sedar.com.) or by contacting Petroforte.
The forward looking statements contained in this news
release are made as of the date of this news release, and
Petroforte does not undertake any obligation to update publicly or
to revise any of the included forward-looking statements, whether
as a result of new information, future events or otherwise, except
as expressly required by securities law.
Conversion
Barrel of oil equivalents (BOE) may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6
Mcf:1 bbl is based on an energy equivalent conversion method
primarily applicable at the burner tip and does not represent a
value equivalent at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Petroforte International Ltd.Kevin AdairDirector(587)
779-4259Petroforte International Ltd.Allan KingPresident, CEO &
Director(587) 779-4259
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