Lions Gate Tests Second Well

Lions Gate Energy Inc.

Vancouver-based Lions Gate Energy Inc. said Wednesday that completion operations have concluded on the second well of its Virgo Zama Project this week as reported by operator Warburg Resources.

The well is being equipped with production equipment, and production is expected to begin in early July. The well was swabbed and tested over a 6-day period for a total of 48 hours and produced 70.67 cubic meters of oil. This corresponds to a swab rate of 35.4 cubic meters per day, or 222 bopd. Stabilized production rates are expected to be approximately 50% of the swab rate.

This well is the second well on the lease of which the company's interest is 12.5%, with 17.5% subject to a gross over-riding royalty of 15% on gas and a aliding acale (1/23, 5%-15%) royalty on oil.

The Virgo-Zama area has been a prolific producer of oil and gas from Devonian Keg River reefs. The four prospects are all define by 3D seismic and all proposed wells offset former producers in existing pools.

Company: Lions Gate Energy more info
 - Lions Gate Tests Second Well (Jul 05)
Company: Warburg Resources more info
 - Warburg Pincus to Fund New Exploration Company (Nov 03)
 - Lions Gate Tests Second Well (Jul 05)