Tuscany Energy Boosts Production with New Saskatchewan Horizontal Well
Tuscany Energy has reported the successful drilling and completion of a horizontal oil well, in the Dina formation, in the Evesham area of southwestern Saskatchewan. The Tuscany et al. Evesham HZ 2B9-21-4B2-21-39-27 W3 well was drilled to a measured depth of 1467 m (759 m TVD) with a horizontal Dina section of 496 m. The well is currently producing 170 barrels of oil per day. Tuscany is the operator with a 60% working interest.
The new Dina well is within the Evesham field boundaries and significantly increases Tuscany's production of heavy oil in Saskatchewan
which is entirely from the Evesham/Macklin area. With the new well, the Company's current net Saskatchewan production is approximately 205 barrels of oil and 170 MCF/d. In Alberta the Company has net production of approximately 40 barrels of light oil and 170 MCF/d, primarily from the Wildwood area. With the addition of the new Evesham well the Company's total net production has increased to approximately 300 BOE/D.
Tuscany has a 60% working interest in 1040 acres of land on the Dina prospect, and pending the successful evaluation of the well the company will make application for reduced spacing to allow for the drilling of multiple development wells on the property.
Given the current economic climate and the relatively low prices for oil and gas, the Company plan is to limit capital expenditures, control operating costs and overhead to reduce outstanding debt over the first half of 2009.
This plan will position the company to capitalize on the development of its Dina discovery and increase other exploration and development activities when market conditions and energy prices improve.