Third Well Drilled, First Two Wells Fraced in Kentucky

Norwest Energy reports that the third well in the Little Sandy Project has been successfully drilled and is now cased and awaiting fracing and completion. Indications of free gas were observed.

The well was drilled to a total depth of around 688 meters (2,258 feet) and intersected 148 meters (487 feet) of Devonian Shale.

Wireline logs have been run and are currently being evaluated. In addition to the shale potential, hydrocarbon indications are present in the shallower Berea section. The Berea and other zones are secondary targets in all three wells.

The first two wells in Kentucky have been fraced and completed. The wells are currently shut in to determine well pressures after flowing gas at modest, unstabilized rates. A frac and completion program is currently being determined for the third well. This is likely to involve a dual stage program in the Devonian Shale and the Berea. If the results on the Berea are encouraging, then additional Berea completion programs for the first two wells will be considered.

Norwest Energy Limited is project operator with 60%; Alto Energy Inc. holds 30% and Hay Exploration is the drilling operator with 10%.