Argosy Energy has commenced trading on the Toronto Stock Exchange under the symbol "GSY" on October 17, 2008 and has provided the following operational update.
Argosy was established through a Plan of Arrangement between Pengrowth and Accrete approved by shareholders of Accrete at the shareholders meeting held on September 29, 2008. Its primary area of operations is in the Claresholm area of Alberta approximately 150km south of Calgary with other interests in the Saxon area of NW Alberta. Current production is 1100 BOED with an additional 430 BOED waiting to be tied in.
Argosy's drilling program in the Claresholm area has resulted in 3 (3.0 net) oil wells and 3 (2.6 net) gas wells. The gas wells will be tied into the Company owned (75% net) and operated processing facilities while the oil wells will operate as single well batteries until such time as a central battery is built with further pool delineation.
These six wells will add an additional 500 BOEPD net (70 BOPD and 2.6 MMCFD) bringing Argosy's total production to 1500 BOED (after decline) when tied in during the first week of November, 2008. The drilling and success of these wells have opened up additional opportunity for Argosy in the Claresholm area with 2 additional wells planned towards year-end and into the first Quarter of 2009.
The Company also completed an acquisition for $800K to increase its working interest position at Claresholm from 60% to 100% and added 20 BOEPD and 1770 net acres.
In addition, Argosy is finalizing its plans to drill 2 wells in December, 2008 and up to 5 wells in the first Quarter of 2009 on its Saxon area prospect, targeting the Lower Mannville and Montney horizons as identified on its 3D seismic survey.
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