Dixon Makes Discovery on Joarcam Prospect

Dixon Oil and Gas has made a discovery on its Joarcam Project "4-27" well in Alberta, Canada, which was successfully drilled to a total depth of 3,347 feet (1020 meters).

Following the running of a suite of well logs, a casing election was immediately made. Two intervals drilled contain hydrocarbons and are now to be immediately flow tested. One zone contains natural gas and the other oil. This multi-zone intersection will be the focus of the completion phase of the well. Dixon anticipates the flow testing to take approximately 10-14 days.

The first well location chosen by Dixon is an offset from a Viking well that has yielded 156,000 barrels of light crude to date. Dixon will acquire a 49% working interest in the Joarcam Prospect from 1048316 Alberta Ltd., a private company, by the drilling and completion of the first two wells. The Joarcam property is located in central Alberta and is characterized by a conventional, light oil bearing zone in Viking sands at a depth of 3,000 feet. The property is adjacent to a mature oil producing field where there is excellent well control on a large sand bar that shows 20 feet of pay thickness. Recoverable reserves per well are estimated at 100,000 barrels.