Corcel Regulatory News (CRCL)

Caracal Energy Provides Development and Exploration Update /NOT FOR DISSEMINATION IN THE UNITED STATES/ CALGARY, July 16, 2013 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company")an international exploration and development company focused on oil and gasexploration, development and production activities in the Republic of Chad,Africa ("Chad"), today provided an operational update summarizing its currentdevelopment and exploration activities in Chad. Highlights · The Badila production facilities have been commissioned and aninauguration ceremony was held by President Idriss Deby on June 9, 2013. Theinterconnection (hot-tap) with the TOTCO-COTCO export line has been completed,and the transportation agreement is being finalized. The Company anticipatesapproval to start producing the Badila field this month. · A second drilling rig has arrived on location in southern Chad and isexpected to spud the Badila-4 development well by the end of July 2013. · The Badila-3 well was drilled to a total depth of 2,150 meters andcased as a Cretaceous C and D sands producer. Test results indicated that thewell is capable of producing ~2,400 bopd and will be brought onstream oncefacilities are completed to handle the associated water. · The 320 km2 3D seismic survey covering the Badila field and theadjoining Bitanda Ridge exploration prospect was completed on schedule and onbudget. · The Mangara-4 development well spudded on March 13, 2013, and drilledto a total depth of 2,471 meters. Petrophysical results show 40-60 meters ofestimated oil pay in the lower Cretaceous C & D sands. The well was suspendeddue to hole instability, with plans to re-enter in the near future and completeas a producer. · The Mangara-5 well was drilled and cased as a lower Cretaceous C & Dsands producer. The well was also deepened to 3,339 meters to test the lowerCretaceous E sands, a new exploration horizon below the main Mangara field.Petrophysical results show a potential range of 150-230 meters of estimated netoil pay in the lower Cretaceous E sands. Testing of the E sands has commencedand the first 25 meter interval produced a maximum rate of 815 bopd of 39degree API with no water. Cumulative oil recovery from this test was 200 bblover a total 16-½ hour flow period. · An application for the 25 year development license was filed for theKibea field on April 25, 2013. · With the arrival of the second drilling rig, the Company is now ableto initiate exploration drilling. A Krim exploration well is expected to spudin August 2013 and a Bitanda exploration well in September 2013. Badila Exploration The Company completed its 3D seismic program covering 320 km2 of the Badilafield, as well as the adjoining Bitanda ridge, where multiple explorationprospects had been identified on 2D seismic. The 3D seismic confirmed closure of the Bitanda structure against a basinbounding fault, moving the priority of this exploration prospect near the topof the Company's drilling sequence. This prospect has been quantified in therecent mid-year reserves and resources update. Badila Development Caracal has full 3D coverage of the Badila field, and the results of theinitial processing of the 3D seismic are incorporated in the mid-year reservesupdate. The results suggest extension of the Cretaceous D sands to the east ofthe previously understood field limits, and this extension will be confirmed byfurther drilling commencing with the Badila-4 well. Badila-3 Badila-3 was drilled to test the flank of the field structure at the CretaceousC and D levels. Drilling and petrophysical analysis suggested the Cretaceous Dsands may contain additional moveable oil, so three additional well tests wereadded. Results have been encouraging, and suggest economic reserves may beproduced from the C1a, C3, D6 and D8 zones as follows: ZONE COMMINGLED TESTING INDIVIDUAL TESTING POTENTIAL RATE WITH ESP Fluid Rate Oil Cut Fluid Rate Oil Cut Fluid Rate Oil Rate (BBL/day) % (BBL/day) % (BBL/day) (BBL/day) C1a 1,734 6% 697 11% 311 99 C3 1,438 5% 4,446 218 D4, D5 1,492 0% 7,500 0 D6 1,655 36% 6,834 2,434 D8 854 22% 2,641 585 Notes: Productivity Index was estimated from swab tests, and used to estimateESP (Electric Submersible Pump) rates at an intake pressure of 1,350 psi (~35%drawdown) The oil gravity of the D6 and D8 zones is ~36 degrees API. With only the D6 andD8 zones completed with an electric submersible pump, the well is capable of~2,400 barrels of oil per day commingled from these two zones. However, sincethis oil comes with ~5,100 barrels of water per day, these zones will beproduced when additional processing and water injection facilities areavailable. Mangara Development and Exploration Mangara-4 The Mangara-4 development well spudded on March 13, 2013 and was drilled to atotal depth of 2,471 meters. Petrophysical results show 40-60 meters ofestimated oil pay in the lower Cretaceous C & D sands. The well was suspendeddue to hole instability, and will be re-entered in the near future andcompleted as a producer. Depending on the testing results of Mangara-5,Mangara-4 may be deepened and completed as a dedicated lower Cretaceous E sandsproducer. Mangara-5 The Mangara-5 development well was drilled and cased as a lower Cretaceous C &D sands producer. The well was also deepened to 3,339 meters to test theCretaceous E sands, a new exploration horizon below the Mangara field. Previousoperators drilled three penetrations (to varying depths) of the lowerCretaceous E sands. The E Sands had good hydrocarbon shows across a grossinterval of 750 meters with a potential gross section of 900+ meters based onseismic estimates. In addition, a drillstem test by previous operators across a9 meter interval at the top of the E sands showed moveable hydrocarbons with anundamaged calculated flow capacity of 220 bopd, and API gravity of 38.9°. The recent 3D seismic over Mangara, along with specialized processing andinterpretation techniques, suggests continuity of sands within the lowerCretaceous E could provide significant hydrocarbon storage volumes. Fromdrilling and petrophysical analysis, preliminary Mangara-5 results suggest thiswell has a potential range of 150-230 meters of estimated net oil pay in theCretaceous E sands. The first of a series of planned tests was across a 25meter interval and achieved a maximum oil rate during this period of 815 bopd.The interval produced a total of 200 barrels of 39 degree API oil with no waterover the 16-½ hour test period. Kibea Development Caracal filed an Exclusive Exploitation Authorization ("EXA") application onApril 25, 2013 and was deemed conditionally approved on May 25, 2013 pendingsubmission of an Environmental Impact Assessment ("EIA"). The EIA is underway,and potential pipeline routes are being surveyed. A 3D seismic survey over theKibea field and nearby exploration prospects is scheduled to commence in the4th Quarter of 2013 or 1st Quarter of 2014. In addition, an appraisal well onthe Kibea field is scheduled to spud in the 4th Quarter of 2013 to test deeperhorizons and obtain core and fluid samples for development planning andfacilities design. Badila Production The first phase of the modular Badila production facilities was completed onschedule at the end of May and has been commissioned for production. PresidentIdriss Déby inaugurated the Badila facilities on June 9, 2013 by opening theproduction shipping valve. The system has been loaded with oil and prepared tocommence production during July, once the transportation agreement has beenfinalized and signed. Exploration Drilling In addition to the results in the lower Cretaceous E sands at Mangara-5, thearrival of a second drilling rig will allow the exploration program tocommence. The Company anticipates spudding a Krim exploration well in August2013, after which the drilling rig will move to the Chari East Doseo block forfurther exploration. One of Caracal's most high potential explorationprospects, Bitanda in the DOI block, is expected to spud in September 2013. Gary Guidry, Chief Executive Officer of Caracal Energy said: "In 2013 we sucessfully drilled and tested two development wells in the Badilafield and we are currently testing a second well drilled in the Mangara field.The 3D seismic surveys at Badila and Mangara have provided encouraginginformation, suggesting further extensions of the fields, and validating nearbyexploration potential. We are ready to commence production at Badila, and anticipate the finalauthorization this month. Our combined capacity from the first three Badilawells will provide production capacity to deliver at a combined 14,000 bopd tokeep our Phase one production facilities loaded and production volumes in linewith management expectations. We expect the Mangara field to add furtherproduction by the end of the year." 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.The PSCs 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; development of the Mangara and Badilafield; expected completion of the 3D seismic shoot; and other matters. Subjectto applicable securities laws, the Company does not undertake any obligation torevise this forward-looking information or these forward-looking statements toreflect subsequent events or circumstances. The forward-looking information andstatements contained in this press release are expressly qualified by thiscautionary statement. Well-test results are not necessarily indicative oflong-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 BaylessJoel Shaffer604-694-6035416-649-8006 FTI Consulting - UK Media EnquiriesBen Brewerton / Ed Westropp+ 44 (0) 207 8313 3113caracalenergy.sc@fticonsulting.com