Richards Spuds First Ardley Test Well

Richards Oil & Gas Limited reported that it has completed and tested the last of its Ardley vertical test wells, and it has drilled its first horizontal Ardley test well. In addition, the company provided an update on the tie-in of conventional gas at Gadsby.

Completion of Ardley vertical exploration program

Richards has perforated, stimulated and tested the last well in its eight-well vertical Ardley exploration drilling program in the Marsh area, near Hinton, Alberta. Results confirm gas flow from the Ardley coal zones with no water. Production rates are equivalent to those from Richards' offsetting well and demonstrate extension to the "dry" gas fairway. It is from this offsetting well pad that the first horizontal Ardley test well will be drilled. The vertical well is the culmination of Richards' initial $5 million Ardley test program conducted across the company's Ardley exploration lands, which comprise some 80 square miles.

Ardley horizontal well

Richards plans to spud its first horizontal test well into the Ardley coal seams by the end of November, dependent on rig release from a third party. "This first horizontal well in the Ardley coals will provide the opportunity to move toward demonstrating the commercial potential of this huge natural gas resource," said David Thomas, President and CEO of Richards Oil & Gas Limited. "The well is designed to have a horizontal leg of some 500 meters and is expected to take approximately 15 days to complete."

Gadsby gas tie-ins

In the Gadsby area of central Alberta, Richards has completed laying pipe to tie-in two of its Glauconite wells and expects to have sales gas flowing by the end of the month. A third pipeline is under construction to tie-in a Viking well. On completion of these three lines, anticipated flow rates are expected to be in excess of 1.5 mcf/d.

A Calgary-based exploration company, Richards Oil & Gas Limited is involved in the development of hydrocarbon resources in Western Canada, with an emphasis on the exploitation of coal bed methane (CBM). The unparalleled CBM experience of its management team enables the company to capitalize on opportunities to create short-term cash flow and long-term value for its shareholders.