Canadian Exploration and Development Update

RNS Number : 8814U

Solo Oil Plc

03 January 2012

 



For Immediate Release

3 January 2012

SOLO OIL PLC

("Solo" or the "Company")

Canadian Exploration and Development Update

Solo Oil plc today announces an update on activities in South Western Ontario, Canada operated by its Joint Venture partner Reef Resources Limited ("Reef") including the spudding of a new exploration well at the Airport North reef.  

Reef's announcement, to the Toronto exchange, reads:

January 3, 2012 - Calgary, Alberta - Reef Resources Ltd. ("Reef" or the "Company") reports spudding of its North Airport #1 well on December 29, 2011. The North Airport well is an exploration well located approximately 1 km north of the Company's Airport South reef with a targeted drill depth of 608 meters.  Seismic data indicates the North Airport reef is potentially a gas and liquids prone reef, similar to Airport South.

Subject to positive drilling results, production from North Airport #1 will be tied into the Ausable process facility for the Company's Enhanced Oil Recovery (EOR) program.  Produced gas will be used for re-pressurization of the Ausable reef in order to increase oil production and natural gas liquids production recovered from the gas recycle process.  As stated in previous press releases, the EOR and Gas Recycle program being executed in the Ausable Reef involves pressurizing the reef formation with our own produced gas from the Airport South reef and, potentially, the North Airport well.  To accelerate the EOR program the Company also has the option of purchasing natural gas from the local utility for recycling.

Completion and testing the Upper Guelph and A2 gas zones for Airport South # 1 will be executed in the first quarter of 2012.  Pipeline material and well site separation equipment for tie-in of the suspended Airport #1 South gas well has arrived on site with construction expected to begin by mid-January (weather permitting).  All components required for the previously announced field optimization program for the Ausable #2, #4 and #5 wells has arrived on-site and will be initially installed in Ausable # 5 and then rolled out to Ausable #2 and Ausable #4 over the next few weeks.  Production from the upgraded pumping system will be commissioned as soon as they are connected to the Ausable facility.

Solo already holds a 23.8% working interest in the Reef properties and, as previously announced, will increase that holding to 38.1% in the near future.

Neil Ritson, Solo Executive Director, commented:

"Reef has made substantial progress across all aspects of the field development and we are delighted to be going into 2012 with additional stages of the Ausable gas cycling EOR programme well underway.  The drilling of a further exploration well to assess further equity gas for the Ausable cycling scheme is a very positive additional aspect of the programme.   We expect further news on production and drilling through the first quarter."

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                             Public Relations Mark Antelme  Henry Lerwill	[phone] [phone]

 

END

 

 

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