Winstar Tests Oil from Tunisian Well

Winstar Resources provided an update on the results of the testing operations at its 100% owned and operated Chouech Essaida No.11 well (CS No.11) in southern Tunisia.

  • CS No.11 was spud at the end of March 2010 and reached the planned total depth by the end of April 2010.
  • The well was drilled and completed at a cost of $5.9 million USD, which is significantly below budget.
  • There are a total of six prospective zones in the well, but only the four best zones (according to open-hole log response) have been completed to date. In order to simplify the completion operation, the bottom two zones of the four were tested together and the production commingled.
  • The well was tied into the 100% owned and operated Chouech Essaida central production facility (CPF) and all testing was conducted at the CPF after release of the drilling rig, resulting in lower testing costs and the sales of all test oil production.
  • The following is a summary of the stabilized flow data for each of the test intervals for the CS No.11 well. The Company cautions that the initial test rates may not reflect the long term productive capacity of the well.

The Company's current operational plan is to place the bottom two zones on production at an anticipated production rate of approximately 700 bbl/d of oil. The upper zone will be produced in the future, likely with the mechanical assistance of a downhole pump.

Once again, the Company cautions that the initial production rates may not reflect the long term productive capability of the well and that the optimal rate of production may not be its full productive capacity. The Company further cautions that some facility modifications will be required including, but not limited to, the construction of additional oil tank storage and incremental gas compression at the Chouech Essaida CPF and additional oil storage capacity at the Company's oil sales terminal located at El Borma, prior to the Company being capable of producing all incremental oil and gas production without restriction.