Field Test of Axe Lake Discovery On Schedule, Says Oilsands Quest

Axe Lake, Saskatchewan
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Oilsands Quest reported that drilling of thermally completed, injection and observation wells for the reservoir field test program in the Axe Lake Discovery area is progressing and will continue as long as weather conditions allow.

On March 16, 2008, two wells for the test program had been drilled and completed, and a third well was being drilled. Approximately 18 vertical wells are expected to be drilled on three test sites. A specialized heavy-duty, truck-mounted drilling rig was contracted for drilling the test wells. Drilling of these wells is planned to resume after spring breakup.

The reservoir test program is currently underway with drilling, coring, logging and well completion activities. Initial steam injection into the reservoir is expected to commence in the summer of 2008 upon completion of construction of the facilities, which has also begun.

In preparation for these tests, advanced laboratory testing and production simulation studies utilizing the drilling, coring and logging data obtained from this winter's operations, including the reservoir test drilling program, will commence immediately. This program is intended to contribute to the data required to determine the optimal in-situ process or processes that may be used to produce from the Axe Lake Discovery.


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