Obed Development Gas Well Set for November Production

Ivory Energy has announced the results of the initial flow test of the main producing zone of the Obed development gas well. The zone was tested for 24 hours and flowed 8.207 mmcfpd of sweet natural gas with peak rates at 10 mmcfpd and averaged approximately 10 bbl/mmcf of natural gas liquids.

Total production including condensate was 1,450 boepd. The flowing pressure remained constant at 15,000 kPa during the flow test and at the end of the flow period the pressure increased to approximately 90% of the initial shut-in reservoir pressure (within 40 minutes) which is indicative of significant reserves. The final buildup pressures will be available once the pressure recording devices are retrieved from the well.

Ivory has a 20% working interest in this development gas well. This development gas well is expected to come on stream during November once the tie in of the well is completed.

Ivory has a 14% working interest in the initial Obed discovery well which is currently producing at 7.8 mmcfpd plus condensate.