Spartan Makes Headway in Cardium Drilling

Spartan has drilled and completed a total of three Cardium horizontal wells at its Cynthia property. All of the wells were completed utilizing a multi-stage oil based fracturing technique. Spartan reported the results of the first completion on April 19, 2010. Completion operations on the second and third wells were successful and each of the wells recovered 100% of their frac fluid during the completion test.

Production tubing has been run into all three wells and the wells were flowing up tubing at an average combined rate of 1,275 bbl/d of new Cardium oil and 1.0 mmcf/d of solution gas, when they were shut in for equipping. Based upon the performance of the wells prior to when they were shut in, it appears that one or more of the wells are capable of flowing, although it is impossible to predict how long they will flow. When on pump, the three new wells are expected to be capable of a combined initial production rate in the range of 750 bbl/d of oil and 0.6 mmcf/d of solution gas. Near term facilities constraints at Cynthia will initially limit Spartan's ability to flow all three wells unrestricted. Work is ongoing to address these facilities constraints. The wells should be on production by mid June at a restricted rate, with incremental production coming on stream throughout the summer months as these constraints are removed. Even with the short term facilities constraints factored in, the production from the three new wells will put Spartan in a good position to meet or exceed its stated production targets of 650 boe/d (2010 average) and 1,200 (2010 fourth quarter average).

Operationally, Spartan was very pleased with the results of the first phase of its 2010 Cardium drilling program. Average drilling time from spud to rig release for the three wells was 12 days and Spartan expects to be under budget on all three wells.