CALGARY, June 24, 2015 /CNW/ - LGX Oil + Gas Inc. ("LGX"
or the "Company") (TSXV: OIL) is pleased to provide completion test
results from recent southern Alberta activity. Big Valley (Three
Forks) Formation production from the horizontal well at 6-36-8-24
W4M was isolated and the Banff Formation was completed with a 6 m
perforated interval in the build section of the intermediate casing
and stimulated with a small volume acid job. The completion
has achieved the following extended production test results:
The Banff Formation has been flowing back for 159 hours and has
produced in excess of 2,700 Bbl of light oil for an average daily
rate of approximately 420 Bbl oil per day over the test period.
Peak oil rates in excess of 800 Bbl per day have been
measured during the flow back period. The 6-36 well is still
flowing 130 Bbl of oil per day at a flowing pressure of 1,000 kPa
with a two percent water cut from the un-frac'd Banff
Formation. LGX has a 100 percent interest in the well prior
to recovery of 200 percent of the drilling, completion, equipping
and tie-in costs, at which point its interest will revert to 80
percent. Please refer to important Reader Advisories
at the end of this news release.
The Company will continue the evaluation of the well through the
LGX 1-2 battery. The positive test results from 6-36
Banff completion and the number of
Banff oil shows and tests from
previously drilled wells have validated the geophysical and
geological model for the play. LGX estimates that up to 40
sections of LGX land offsetting the 6-36 well may be prospective
for Banff oil production as well
as the already established Big
Valley play.
LGX is a uniquely positioned, technically driven, junior oil and
natural gas company with a proven management team committed to
aggressive, cost-effective growth of light oil reserves and
production combined with high impact exploration potential in
southern Alberta. LGX's common shares trade on the TSX
Venture Exchange under the symbol OIL.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Reader Advisories
Caution Respecting Initial Production Results - The
production test results for the Banff Formation completion at the
6-36 well disclosed in this press release are initial results for
the first 159 hours of production only and are not determinative of
the rates at which such well will continue production and decline
thereafter. Due to the likelihood of high initial declines
from the tested rates, the test results are not indicative of
long-term performance or ultimate recovery from the well.
Readers are cautioned not to place undue reliance on such rates in
considering the long-term performance of the well or the aggregate
production of the Company.
Forward-Looking Information - This press release contains
forward-looking statements. More particularly, it contains
forward-looking statements concerning the prospectivity of LGX's
properties with respect to the Banff Formation.
The forward-looking statements contained in this press release
are based on certain key expectations and assumptions made by LGX,
including expectations and assumptions concerning the geological
characteristics of LGX's properties.
Although LGX believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because LGX can give no assurance that they will prove
to be correct. Since forward-looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, operational risks in
development, exploration and production and risks associated with
uncertainty in geological and seismic interpretation. These
and other risks are set out in more detail in LGX's Annual
Information Form for the year ended December
31, 2014 dated March 24,
2015.
The forward-looking statements contained in this press release
are made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Meaning of Boe - Boe means barrel of oil equivalent. All
Boe conversions in this report are derived by converting natural
gas to oil equivalent at a ratio of six thousand cubic feet of
natural gas to one barrel of oil equivalent. Boe may be misleading,
particularly if used in isolation. A Boe conversion rate of 1 Boe:
6 Mcf is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio of oil
compared to natural gas based on currently prevailing prices is
significantly different than the energy equivalency ratio of 1 Boe
: 6 Mcf, utilizing a conversion ratio of 1 Boe : 6 Mcf may be
misleading as an indication of value.
SOURCE LGX Oil + Gas Inc.