Excelsior Energy Limited has completed its drilling programs at Hangingstone and West Surmont in the Athabasca oil sands region of Alberta. The Company completed a 35 core well drilling program on March 14, 2008.
An initial analysis of certain core wells has been completed with encouraging results, moving the Company closer to planning a significant SAGD project. Full core analysis is ongoing with completion expected prior to May 30, 2008.
At Hangingstone, the Company drilled, cored and logged 26 core wells in the McMurray Formation. As at March 18, 2008 core data has been integrated with log data on 17 of the core wells ("the Initial Wells"). Twelve of the Initial Wells exceeded 15 meters net bitumen thickness. Gross bitumen thickness ranges from 24.5 to 54.0 meters; net bitumen thickness ranged from 15.5 meters to 37.4 meters. Eleven of the Initial Wells exceeded 20 meters net bitumen thickness, with six of these exceeding 30 meters net bitumen thickness. Net pay thickness cut-offs used were 27% porosity, 6% weight bitumen and V-shale less than 40%. Of the remaining five Initial Wells, only one well encountered net bitumen thickness less than 10 meters.
At West Surmont, the Company has drilled, cored and logged nine core wells in the McMurray formation. As at March 18, 2008 core data has been integrated with log data on five of the core wells ("the Surmont Initial Wells'). Two of the Surmont Initial Wells exceeded 20 meters net bitumen pay thickness. Gross bitumen thicknesses for these two wells were 41 meters and 47 meters respectively; Net bitumen thickness was 24.5 meters and 28.8 meters respectively. Net pay cut-offs used to define net thickness are described above.
David Winter, President and CEO, commented "We are very pleased with our initial core well results. Operations met the program objectives and well results exceeded our expectations. The success has underscored the importance of our seismic program interpretation in identifying areas of thick McMurray Formation sands. We achieved a success rate in excess of 75% testing the seismic anomalies at Hangingstone." He further added "With these excellent results we can now look forward to initiating the planning of a significant SAGD project in the Hangingstone property."
In the ongoing analysis core data will be integrated with log data to determine reservoir parameters and net pay thicknesses. The data will then be integrated with the seismic data into a geological model and an initial reservoir engineering model to estimate the resource potential of the McMurray Formation. The Company will complete its analysis of the well data and will report detailed results around the beginning of June.
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