Base O&G Boosts Production at Pembina Cardium Wells
Base O&G updated the results of its third and fourth earning wells ("Earning Wells") under a previously announced farm-in agreement to develop Cardium production with a private company in the South Pembina area. The third Earning Well was stimulated with a 13-stage frac program and flowed on clean-up for 140 hours. Over a subsequent 48 hour production test, the well flowed at rates of 270 barrels of oil and liquids per day plus 1.8 MMcf/day of natural gas for a combined rate of 570 BOE's per day. To date approximately 60% of the load oil has been recovered. The well is expected to be tied-in by December 1, 2010. Base has earned a 30% working interest in this well and the related section under the farm-in agreement.
The fourth Earning Well is being currently drilled and is expected to be completed with a multi-stage frac program in early December. Under the aforementioned farm-in agreement, by paying 50% of the drilling, completion, equipping and tie-in costs of the fourth Earning Well, the Company will earn a 30% working interest in the fourth Earning Well and the Cardium rights within the section.