Corcel Regulatory News (CRCL)

Caracal Energy Provides Operational Update CALGARY, Aug. 12, 2013 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company")is pleased to provide an operational update summarizing current development andexploration drilling activities in Chad, as well as facilities construction andprogress toward first oil production. Highlights Drilling activities · Krim Exploration well spudded on August 4 2013, immediately southwest of Mangara development field. · Badila-4 appraisal well spudded on August 8 2013, appraising southeast extension of the primary Badila Field. · Rig will then move to spud the Bitanda exploration prospect. Development facilities and production · Badila production facilities completed and commissioned and Mangara production facilities scheduled for completion and commissioning Q4 2013. · Initial production from Badila wells 1 and 2 expected to be up to 14,000 bopd. · Execution of the documentation for Caracal to be the first third party shipper into the TOTCO/COTCO export line is imminent. Drilling activities The Krim exploration well was spudded on August 4 2013 and is expected to take40 to 45 days to reach target depth. Krim is immediately southwest of theMangara development field, and the exploration well is targeting the CretaceousC and D sands that are currently under development in Mangara, and theCretaceous E sands, which in Mangara-5 have a potential range of 150 to 230meters of net pay based on petrophysical analysis. The Company's reserve andresource evaluator, McDaniel & Associates ("McDaniel") has assigned between 29and 64 million barrels of Pmean to P10 unrisked prospective resource on theKrim prospect, which is less than 10 kilometres from the infrastructure beingconstructed at Mangara. The Badila-4 appraisal well was spud on August 8 2013 and is expected to take20 to 25 days to reach target depth. Badila-4 is northeast of the primaryBadila field where the first three development wells are located. The welllocation was chosen to target a new structural high that was mapped on therecent 3D seismic program shot over Badila in Q2 2013. The Badila field hastotal possible reserves of 40 million barrels, over and above the proved plusprobable reserves of 45 million barrels. Much of the possible reserves areassociated with the area in and around the Badila-4 well location. After the Badila-4 well is finished, the same rig will move to the Bitandaprospect, which McDaniel has assigned between 277 and 648 million barrels ofPmean to P10 unrisked prospective resource. It is expected that this well willspud late in Q3 or early in Q4 2013, and will take 35 to 40 days to drill. Development Facilities Badila Production Facility- The facilities are constructed and commissioningwas completed during Q2 2013. This included the tie-in of the first twoproduction wells Badila-1 and Badila-2. The facility is designed to handle upto 14,000 bopd, which will initially come from production in the Badila-1 andBadila-2 wells. Mangara Production Facility- The materials for the construction of thefacilities for Mangara started arriving during Q2 2013, and the facility iscurrently under construction. The Mangara production facilities are scheduledto be completed and commissioned in Q4 2013. Southern Processing Terminal ("SPT") - The SPT will remove any remaining wateror sediment from Mangara production just prior to allocation measurement andblending with Badila oil production. The terminal construction is underway andexpected to be completed and commissioned in Q4 2013. PetroChad Transportation Inc. ("PCT")- is the company authorized to ship oilwithin Chad as defined under our Production Sharing Contract. The InlandTransportation Authorization ("ITA") has been granted and PCT will be shippingand measuring oil shipments into the Export Transportation System throughcustody transfer metering. Also under construction by PCT are the blending andshipping facilities required to bring Mangara onstream. The blending andshipping facilities will be completed and commissioned in Q4 2013. First Oil The Company continues to make progress toward producing into the export linefrom Chad to Cameroon. The Company will initially ship 468,000 barrels of linefill contribution for the partners Glencore, SHT and Caracal, after which itcan accumulate oil for sale. Initial production coming from the Badila-1 andBadila-2 wells is expected to be up to 14,000 bopd. Gary Guidry, President and Chief Executive Officer, commented: "We are very pleased with the progress we are making with the governments ofChad and Cameroon and TOTCO/COTCO, as we move closer toward finalisingdocumentation and technical work necessary to begin shipping crude. "We are also very pleased to be progressing the exploration and appraisalactivities on the licence area with the spudding of the Krim exploration wellclose to the Mangara field and the appraisal well at Badila. We look forward toupdating the market as we move into Q3 2013 with the spudding of the highimpact Bitanda well and first oil." About Caracal Energy Inc. Based in Canada, Caracal Energy Inc. is an international exploration anddevelopment company focused on oil and gas exploration, development andproduction activities in the Republic of Chad, Africa. In 2011, the Companyacquired three production sharing contracts ("PSCs") from the government of theRepublic of Chad. These PSCs provide exclusive rights to explore and developreserves and resources over a combined area of 26,103 km2 in southern Chad. ThePSCs cover two world-class oil basins with development opportunity, oildiscoveries, and numerous exploration prospects. Cautionary Statement Certain information in this press release constitutes forward-lookingstatements under applicable securities law. Any statements that are containedin this press release that are not statements of historical fact may be deemedto be forward-looking statements. Forward-looking statements are oftenidentified by terms such as "may," "should," "anticipate," "expects," "seeks"and similar expressions. Specific forward-looking statements included in thispress release include comments related to the expected timing of pipelinecompletion and facilities advancement; potential production rates; expectedcompletion of well servicing operations including the SPT; development of theMangara and Badila field; expected drilling of the Krim prospect; and othermatters. Subject to applicable securities laws, the Company does not undertakeany obligation to revise this forward-looking information or theseforward-looking statements to reflect subsequent events or circumstances. Theforward-looking information and statements contained in this press release areexpressly qualified by this cautionary statement. Well-test results are notnecessarily indicative of long-term performance or of ultimate recovery. SOURCE: Caracal Energy Inc. For further information: Caracal Energy Inc.Gary Guidry, President and Chief Executive OfficerTrevor Peters, Chief Financial Officer403-724-7200 Longview Communications - Canadian Media EnquiriesAlan Bayless 604-694-6035Joel Shaffer 416-649-8006 FTI Consulting - UK Media EnquiriesBen Brewerton / Ed Westropp+ 44 (0) 207 8313 3113caracalenergy.sc@fticonsulting.com