Operations Update Ausable Field

RNS Number : 3948N

Solo Oil Plc

01 September 2011

 



Immediate Release, 7 am

1 September 2011

Solo Oil plc

('Solo')

Operations Update Ausable Field

Solo Oil plc today announces further progress on the Ausable Field in South Western Ontario by its Joint Venture partner Reef Resources Limited ("Reef").   Reef has released a statement giving an update on the progress of operations in the Ausable Field including improved pumping operations and the successful removal of the obstructions for Ausable # 2.

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

August 29, 2011 - Calgary, Alberta - Reef Resources Ltd. (REE - TSX.V) ("Reef" or the "Company") announces that the Company plans to install a hydraulic venturi downhole pump in well Ausable # 5.  This proven oilfield technology, replacing conventional bottomhole pumps with venturi units, is currently being installed and tested on the Ausable #1 well.  The hydraulic unit is designed to operate efficiently with the light oil and condensate currently being produced from the Ausable reef and will provide optimum production flow rates. It is anticipated that the hydraulic pumping units will also be installed in Ausable # 2 and Ausable # 4 over the course of the next two months.

Following the installation of the venturi pump in Ausable # 5 the Company will be in a position to accurately report production flow rate in addition to production potential with the previously announced Enhanced Oil Recovery (EOR) and cyclic natural gas liquids (NGL's) program.  Under the EOR program, reservoir analysis and design work to date indicates re-pressurization of the reservoir will have a significant positive impact on overall field production and recovery factors. Results and updates of the Company's optimization program and implementation of the cyclic gas EOR program will be released once fully operational.

Reef is also pleased to announce that two of the three frac tools from the Ausable #2 horizontal well have been successfully recovered.  Approximately 75% of the productive zone is now open.   Additional fishing operations are not viewed as cost effective and the Company will be moving forward with wellbore clean up and flow testing. A further announcement will be made once the well is on stream.

Arnie Hansen stated, "We continue to view Ausable # 5 very positively and the Company's engineering and operations team is working diligently to increase production by implementation of the venturi pumping system followed by the re-pressurization of the reef and commissioning of the EOR and NGL program.  There are numerous analogous fields where these types of optimization efforts have successfully yielded significant increases in production once in operation.''

Neil Ritson, Solo Executive Director, commented:

"Establishing the optimum technologies for sustainable production at Ausable is a major part of the programme and we are pleased that Reef has made some significant advances.  The final completion of wells #2 and # 5 and the commencement of EOR operations are both important milestones in our investment and we look forward to a further update shortly."

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 Felicity Geidt	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen	[phone]
Pelham Bell Pottinger Financial Public Relations Mark Antelme Henry Lerwill	[phone]

 

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