Operational Update, Canada

RNS Number : 7195Y

Solo Oil Plc

06 March 2012

 



For Immediate Release, 7 am

6 March 2012

SOLO OIL PLC

("Solo")

Operational Update, Canada

Solo today announces a further update on activities in South Western Ontario, Canada operated by its Joint Venture partner Reef Resources Limited ("Reef"). 

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

March 5, 2012 - Calgary, Alberta - Reef Resources Ltd. ("Reef" or the "Company") reports the following developments and updates.   The Company continues to make progress on all field activities associated with the ongoing development of the Ausable Gas Recycling and Enhanced Oil Recovery (EOR) project in Ontario. 

·     The recent extremely wet weather in Ontario has caused delays to the pipelining between the existing 
South Airport gas well and the Ausable process facility.  Operations will recommence once better ground conditions are available. Once the pipeline welding is completed the necessary road bores will be conducted.  Gas and gas liquids from South Airport will be used for re-injection at Ausable once the pipeline is commissioned. 

·     The reversal of the Union Gas meter, which was tentatively scheduled for February 27, 2012 has been 
delayed by Union Gas due to its internal resource planning. Union has given the Company a new date of March 19 for the meter reversal. Piping modifications at the facility will commence once the gas flow is reversed and will allow initiation of the gas re-injection scheme.  The workover program for installation of a production packer in Ausable #1 well will coincide with meter reversal and will allow gas reinjection into the uppermost section of the Ausable reef.

·     A larger inlet separator has been purchased in Alberta and will be shipped to Ontario.  The larger separator is designed to handle the greater oil, water and natural gas volumes associated with the venturi pumping system. A new high pressure surface venturi pump skid has also been designed and the Company is currently sourcing qualified fabricators. Facility upgrades associated with the larger separator and pump skid will accommodate production from all the Ausable and Airport wells.

·     After commissioning trials on the Ausable #5 venturi pump, a downhole valve requires replacement. A service rig is required to retrieve and re-run the down-hole assembly and it is planned to undertake this work in the next 14 days.  Oil production rates from Ausable #5 and Ausable #1 have being hampered by mechanical issue's at the pump inlet level approximately 560 metres below surface.  A gas-fired line heater is being installed to heat the high pressure water to service the venturi pumps on all wells in order to overcome this problem. 

·     The cementing of the surface casing of the North Airport well has been successfully completed, Current depth is 280 meters and the rig is now drilling on to total depth estimated to be 608 meters.

Arnie Hansen, Reef President commented: "While progress at times has suffered from some minor delays, all the components of what we believe will be a very successful and productive program are now coming together at Ausable."

Neil Ritson, Solo Executive Director, commented; 

"Meeting the field production target of 500 bopd by end 2012 depends on successfully implementing a range of technical modifications at the Ausable Field, the import of gas from Union Gas and from the joint ventures own Airport reefs, and the full commissioning of the venturi pumping system successfully trialled in 2011 at Ausable #1.  Good progress is being made on all the critical elements.  In addition, the North Airport exploration well is anticipated to reach the reservoir in April and may give a further boost to the available equity gas for the EOR scheme."

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]
Old Park Lane Capital Plc Joint Broker Michael Parnes Luca Tenuta Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Pelham Bell Pottinger                             Public Relations Mark Antelme  Henry Lerwill	[phone] [phone] [phone]

Glossary:

boed                            - barrels of oil equivalent per day

 

END

 

 

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