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Drilling at Gibb Maitland-1 Well Stops on Electrical Problems

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New Standard Energy revealed Tuesday planning was finalized and operations started over the weekend to side track the Gibb Maitland-1 well from a depth of approximately 2,953 feet (900 meters) after efforts to free the stuck drill pipe and bottom hole assembly were unsuccessful last week.

Cement plugs have been set in the wellbore in preparation for side tracking the Gibb Maitland-1 well, and routine pressure testing has been successfully completed on the blowout preventers. Current operations are focused on assessing the nature of recurring electrical issues with the MB Century Rig-14's power controller unit and working with drilling contractor MB Century to address these issues to facilitate ongoing operations.

The rig is currently not operating while its power controller unit is being repaired.

The primary objective of the first phase of the drilling campaign, including the Gibb Maitland #1 well, is to gather a comprehensive modern data set over the Goldwyer Formation via a detailed evaluation program consisting of mud logging, logging-while-drilling, coring and wireline logging. This data will be used to assess the resource potential of "unconventional" hydrocarbons in shale reservoirs within the Kidson sub-Basin, where New Standard and ConocoPhillips have a dominant acreage position.

Gibb Maitland-1 is strategically located in a central position on the northern slope of the Kidson sub-basin and will test a different and more favourable geological setting to the first well, Nicolay-1, in the program. The Gibb Maitland-1 region is interpreted as the source area of the migrated oil and gas shows seen in wells to the north of EP 450, and the well is targeting hydrocarbons in-situ within the mature source-rock shales of the Goldwyer Formation.

Based on very preliminary estimates, the drilling of the Gibb Maitland-1 side track well may extend to late-March 2013 should drilling resume shortly.

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