Signet Completes Second & Third Horizontal Wells at Sawn Lake

Signet Energy

Signet Energy has completed drilling the second and third wells in the Bluesky Formation at Sawn Lake. At this time, Signet Energy will not be drilling the fourth well at it's proposed location since it would not provide any additional geological information in it's delineation of the Sawn Lake Reservoir beyond that of the two recently completed wells in the same vicinity. The company is currently evaluating the two horizontal wells recently drilled and completed.

The Sawn Lake Oil Sands Development has been estimated by two respected third-party petroleum engineering firms to contain a total of 820 million to 1.2 billion barrels of oil resource in place, of which Signet Energy can earn a 40 percent working interest on all contiguous sections covering 44,480 acres in the Sawn Lake area of Alberta, Canada. Signet has commitment to drill a total of 10 wells, each well drilled earns Signet an interest in the field; one well has been drilled and completed to date and demonstrated cold flow reservoir characteristics. To date Signet has earned a 40 percent working interest in 18 sections. Deep Well is being carried by Signet for the first 10 wells and thereafter, Deep Well is required to pay their 40 percent share, along with each of the two other 10 percent working interest partners that pay their share of completion, production test and operating costs. Signet Energy, Inc. is the operator of the Sawn Lake Oil Sands Development.