Cougar O&G Spuds HZ Well in Trout Multi-Well Drilling Program

Cougar O&G announced the spudding of the first well in its multi-well drill program late in the day on February 21, 2011.

The horizontal well is targeting light oil from the Keg River Formation, the common producing zone in the Trout area of northern Alberta. The target was chosen from the 3D seismic purchased and reprocessed using newer technology in September 2010. The 3-D seismic program on adjoining Cougar lands is currently being processed and interpreted to further delineate multiple horizontal drilling locations on those lands. We are also using an innovative intermediate casing design toeliminate future Wabamun zone casing corrosion which will eliminate some of ongoing maintenance costs and reduce our overall operating costs.

The horizontal drilling project is expected to take approximately 4 weeks to complete.


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