West's Crossfire 9-1 Snags GPP Status, Now On-Stream

Pembina Area
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West Energy Ltd. announced that the Company-operated Nisku well located at West Pembina 09-01-050- 6W5 was recently tied-in and is producing into the Crossfire battery. In addition, the Energy Resources Conservation Board (ERCB) has granted new pool status (Pembina Nisku C2C pool) and Good Production Practice (GPP) for the pool.

The new pool status means the well will receive a $1.0 million crown royalty holiday and GPP allows West to produce a Nisku well at any daily oil rate as long as a minimum reservoir pool pressure is maintained and a produced gas versus oil ratio is not exceeded.

With GPP approved, West has ramped up production from the 9-1 well to 1,850 BOPD of light oil and 1.3 MMCFD of raw gas. The 9-1 well performance to date is similar to the West operated Nisku well located at 13-2-50-6W5 (W.I. 100%) which is one of the highest producing oil wells in western Canada.

West has a 67.5% working interest in the 9-1 well facilities and production. The Company is working to license up to three development wells in the Pembina Nisku C2C pool.

The commencement of production from 9-1 demonstrates West's ability to drill, complete and tie-in the technically challenging wells in the Pembina Nisku program in a safe and efficient manner. West is working to license a number of Nisku development and exploration drilling opportunities on Company owned lands in the Crossfire area.

With the Crossfire 9-1 well on-stream, the current corporate production target is to average over 5,500 BOEPD for the remainder of the year.


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