Alexander Energy Ltd. Announces New Potential Detrital Sand Oilwell
CALGARY, ALBERTA--(Marketwire - Oct. 30, 2012) - Alexander Energy Ltd. (TSX VENTURE:ALX), ("Alexander" or the "Company") announces that it has cased the 15-12-56-27W4 development well as a potential Detrital sand oilwell. The Company is operator and has a 94 percent working interest in the well. The well is a northerly step-out to two producing oilwells in the Company's Detrital C oilpool, and is Alexander's sixth consecutive successful oilwell in the pool. This result sets up several more development locations to the west and further to the north, all on Company controlled lands.
The 15-12 well encountered 4.5 meters of net pay with no bottom water. It is expected the well will initially produce at its allowable of 20 cubic meters (125 barrels) per day of 26 degree API oil, but actual production, if any, will only be confirmed with testing and tie in. The Company will immediately complete the well and proceed to connect it to our existing gathering system, with an expected on-stream date prior to the end of the year. There is also seven meters of indicated oil pay uphole in the Alexander sand, however this will not be completed at this time.
Alexander's total current production is approximately 850 barrels of oil equivalent per day, 65 percent of which is oil and natural gas liquids.
Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Reference is made to barrels of oil equivalent (BOE). Barrels of oil equivalent may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
FOR FURTHER INFORMATION PLEASE CONTACT:
Alexander Energy Ltd.
Hugh M. Thomson
Vice-President Finance and Chief Financial Officer
(403) 264-1348 (FAX)
Alexander Energy Ltd.
1540, 521-3rd Avenue S.W.
Calgary, Alberta T2P 3T3