Drilling Results, Ausable #5, Canada

RNS Number : 7855E

Solo Oil Plc

13 April 2011

 



For Immediate Release

13 April 2011

SOLO OIL PLC

("Solo" or the "Company")

Drilling Results, Ausable #5, Canada

Solo Oil plc, the AIM listed International Oil and Gas exploration and development Company, today announces the results of petrophysical analysis of the Ausable#5 well in South Western Ontario by its Joint Venture partner Reef Resources Limited ("Reef"). 

Results show the presence of 72 metres of net hydrocarbon bearing pay in the main producing intervals.  The presence of porosity containing oil, natural gas liquids and natural gas is demonstrated by the electric logs and by inspection of the cores cut in the reservoir zones.  Further core analysis is planned and the well will be completed as a production well.  The results of the production test results and the full analysis of the cores will be announced once available.

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

April 12, 2011 - Calgary, Alberta - Reef Resources Ltd. (REE - TSX.V) ("Reef" or the "Company") reports that petrophysical analysis has been finalized on its Ausable #5 well. Log analysis indicates 72 metres net pay of oil, natural gas liquids (NGL's) and natural gas in the Guelph and A2 formations in Ontario, Canada.

Log analysis in the Guelph indicates net oil and gas liquids pay zone is 57 metres with porosity averaging 9.7%. Evidence of hydrocarbons was evident on core and logs throughout the Guelph formation.

Additionally, the shallower A2 formation was identified as a potential gas producer with net pay of 15 meters and 7% porosity.

The Company will now undertake a work program in order to complete the hole and flow test the well, with the intent of bringing the Ausable #5 well on production.

A comprehensive core analysis will be conducted in the near future to determine cap rock integrity for future gas storage, permeability of the producing zones and provide useful information for the upcoming completion program.

Arnie Hansen, President, stated "The Ausable #5 well has exceeded our expectations. The log and core results confirm the notion the Ausable reef is an underutilized and undervalued asset. Findings on the Ausable #5 well confirm the Company logic to accelerate the Enhanced Oil Recovery (EOR) and Natural Gas Liquids program".

Reef will be announcing test results after completion and next development steps in the EOR, NGL program.

The Ausable reef is currently on production and is generating revenue from the initial Enhanced Oil Recovery Natural Gas Liquids Recycling program which commenced in 4th quarter 2010.

Solo Executive Director, Neil Ritson, commented; "These results, with over 70 metres of net hydrocarbon pay, are extremely encouraging and the Ausable #5 well has a high probability of being productive.  This result contributes significantly to the field development plan and to the knowledge necessary to successfully optimise the EOR scheme.  The well, financed by Solo's participating loan, adds further encouragement that the EOR scheme will be commercially successful."

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 Edward Mansfield	[phone]

Pelham Bell Pottinger

Mark Antelme	[phone]
Henry Lerwill

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.

Glossary:

EOR -                             Enhanced Oil Recovery

Guelph -                          a Silurian age reefal dolomitic limestone formation regionally developed in SW Ontario

NGL -                             Natural Gas Liquids, notably ethane, propane, normal-butane, iso-butane and pentanes

Petrophysics -                  the study of the physical and chemical properties of rocks and the fluids they contain

 

END

 

 

DRLGGUMGCUPGGAP