Mooncor Focus Land Acquisition in Western Canada, Scales Back Operations
Mooncor has provided an update on its activities. The Corporation is continuing with a focused land acquisition strategy in both southwest Ontario and western Canada, increasing production at Lloydminster, preparing to complete and test the Corporation's well at Lonestar and continuing public consultation and disclosure communications at Woodbend. The Corporation has scaled back operations at Whitehill Lakes, Bashaw and Crossfield.
Ontario Shales and Conventional Plays
Utica Shale Equivalent (Blue Mountain/Collingwood)
Mooncor and its joint venture partner have identified potential for Utica shale equivalent (Blue Mountain/Collingwood formation) and Trenton Black River gas potential in an area of southwest Ontario. The land, a 25,000 acre block, is held by the Company's joint venture partner. Data available for the Utica shale equivalent is very compelling with Total Organic Content (TOC) of up to 11%. The Utica shale equivalent is organic rich and marginally mature. The Company anticipates that the first well into this play will be spud in 2009.
Antrim Shale Equivalent (Kettle Point)
Mooncor has acquired and earned approximately 3000 acres in Lambton Township in southwest Ontario, focusing on Lambton County's Antrim shale equivalent (Kettle Point formation) and Silurian Pinnacle Reef conventional plays. Land acquisition is continuing in the area. The Corporation recently drilled a Silurian test well (50% BPO / 30% APO) that encountered non-commercial gas shows at the top of the Silurian formation and has been abandoned. Data obtained during the drilling of this well and research conducted in the area has led to additional locations being chosen.
Western Canada Shale Gas Project
A low key land acquisition strategy is ongoing in this area. An update of this project will be released before year end.
Mooncor's second well at Lloydminster has been put on production. Both wells are being restricted to 25 bopd each (40 bopd net to Mooncor). Sand production issues continue but are showing signs of improvement. Once the sand issues are mitigated, well production will be increased to produce at higher rates of up to 100 bopd each (160 bopd net to Mooncor).
A completion and testing schedule is currently being finalized for the Corporation's Lonestar well drilled in 2007. This well encountered multiple zones with potential, including gas, heavy oil and conventional oil. A Caribou Protection Plan for the Winter 2008/2009 season has been submitted and approved. Completion and testing operations are anticipated to commence in the 1ST Quarter of 2009.
The Company has commenced it's public consultation and industry disclosure communications. To date, local municipal and special interest stakeholders have been provided an overview of the proposed project whereby Mooncor will be seeking regulatory approval to commence a 7 well Blairmore Pool exploration and development drilling program. The first well is anticipated to be drilled upon receipt of the drilling licence approval with up to 6 additional wells contingent upon success.
Whitehill Lakes Shale Gas and Heavy Oil, Bashaw and Crossfield
These three projects have been delayed primarily to enable the Corporation to maintain its working capital position, which would allow the Corporation to move forward with its prioritized projects.