Corcel Regulatory News (CRCL)

Caracal Energy Operations Update and Capital Markets Event CALGARY, Sept. 18, 2013 /CNW/ - Caracal Energy Inc. ("Caracal Energy" or the"Company") announces an operational update summarizing current exploration anddevelopment activities in Chad. Krim-1 Exploration Well · Structural closure southwest of the Mangara field · Good porosity and good shows identified over 85 metres so far · Maximum natural flow rate of 2,580 barrels oil per day ("bopd")recorded during testing. It is estimated that with an electric submersible pump("ESP") in the well a stable production rate of 3,000 - 4,500 bopd isachievable Mangara Drilling Update · Successful testing of the Cretaceous E sands in the Mangara easternlobe · Maximum natural flow rate of 1,917 bopd recorded during testing. Itis estimated that with an ESP in the well a stable production rate of 1,500 -2,500 bopd is achievable · Pre-drill un-risked Prospective Resource estimate of 25 MMbbls and 58MMbbls on a Pmean and P10 basis, respectively by the Company's third partyreserves evaluator, McDaniel & Associates ("McDaniel") · Further E sands potential exists in the Mangara western lobe Rig Contract Award · The Company is in the process of contracting an additional 4 to 6drilling rigs and 2 to 4 service rigs · Rig arrival is scheduled to commence in Q1 2014 Seismic Program Tenders · Evaluation of tenders underway for a multi-year 2D and 3D seismicprogramme across the Caracal acreage Krim Exploration Drilling Update The Company's first exploration well, Krim-1, has been drilled to 2,630 metresand cased across the C and D sand horizons. Drilling results indicateapproximately 50 metres of good porosity intervals with good oil shows in theCretaceous C and D sands. Cased hole wireline logs across the Cretaceous C andD sands are currently being processed and analysed. An open hole drill stem test ("OHDST") has been completed over approximately 35metres of gross E sands drilled to date achieving a maximum natural flow rateof 2,580 bopd at a flowing wellhead pressure of 120 psi. The well flowed for atotal duration of 31 hours. Field sampling suggests oil gravity of 34 - 37degrees API and a producing gas-oil ratio of approximately 100 standard cubicfeet per stock tank barrel ("scf/stb"). Based on surface pressure data, nopressure or production decline was observed. The productivity index for the zone is 2.6 - 3.2 bopd/psi. It is estimated thatwith an ESP in the well a stable production rate of 3,000 - 4,500 bopd isachievable. Further testing is planned on this section with potential forfurther E sands to be encountered and tested as drilling continues to a totaldepth ("TD") estimated to be 3,332 metres. The Mangara field and Krim prospect were included in the 147 km2 3D seismicprogram acquired by the Company in 2012. For the Krim structure, theindependent reserves and resources evaluation provided by McDaniel & AssociatesLtd. (the "McDaniel Report") as at June 30, 2013 (as previously announced)booked for Krim unrisked Prospective Resources of 29 MMbbls and 64 MMbbls on anPmean and P10 basis, respectively, for the C, D and E sands. Mangara Drilling Update The Company conducted extensive testing of the Cretaceous E sands in theMangara-5 well since the publication of the McDaniel Report (which attributedrelatively low reserves to Mangara E sands and which was prepared prior todrilling Mangara-5) This was the Company's first opportunity to comprehensivelytest the Cretaceous E sand. The first cased hole test was over the interval 2,950 - 3,095 metres (29.5metres of net perforations). The well was swabbed for 30 hours and confirmed100% formation water as suggested by petrophysical interpretations. The second cased hole test was from 2,474 - 2,669 metres (75 metres of netperforations). The initial 53 hours flow test resulted in a maximum naturalflow rate in excess of 1,900 bopd with a 1" choke and a flowing wellheadpressure of 160 psi. Field estimates indicate crude quality of 35 - 39 degreesAPI, and a producing gas-oil ratio of 100 scf/stb. No formation water wasobserved for the duration of this test and based on surface pressure data, nopressure or production decline was observed. The productivity index for the zone is 1.4 - 1.9 bopd/psi. It is estimated thatwith an ESP in the well, a stable production rate of 1,500 - 2,500 bopd isachievable. Further testing is on-going that will reduce the range ofuncertainty on this well's potential. For the E sands in the eastern lobe of the Mangara field, the McDaniel Reportestimated un-risked Prospective Resources of 25 MMbbls and 58 MMbbls on a Pmeanand P10 basis, respectively (based on a resource audit prior to drilling). Inaddition, approximately 1.5 MMbbls of 2P reserves are booked in the McDanielReport for the eastern lobe of the field. The Company anticipates testing the Cretaceous E sands in the western lobe ofthe Mangara Field, with the Mangara-6 well results due later this year. For thewestern lobe of the Mangara field, the McDaniel Report estimated (on a resourceaudit prior to drilling results), un-risked Prospective Resources of 15 MMbblsand 35 MMbbls on a Pmean and P10 basis, respectively. No reserves have beenassigned in the western lobe of the Mangara field. Badila Drilling Update Rig 96 continues to drill the Badila-4 well. Some delays were encountered dueto fishing operations to retrieve a stuck logging tool. The well has reached TDand penetrated the Cretaceous C, D and E sands. Further wireline logging isunderway prior to running production casing and testing the well. Rig 96 will move next to the Badila-5 well site, which is located immediatelyadjacent to Badila-1 and Badila-2. This is expected to occur during October2013. The access road and well site for the Bitanda exploration well, adjacent to theBadila field, are under construction. The Company anticipates spudding theBitanda well after Badila-5. Gary Guidry, Chief Executive Officer of Caracal Energy, said: "We are very excited by the results of the Mangara-5 E sands testing. This hasthe potential to accelerate our development plans and production goals forMangara. We have now confirmed the presence of oil over a gross column of 195metres. We are also excited about the preliminary results and oil flow tests todate from our first exploration well at Krim." Capital Markets Day Caracal Energy is holding a Capital Markets Day for analysts and investors inLondon, today. Gary Guidry, Chief Executive Officer, and Trevor Peters, ChiefFinancial Officer will host the event, with presentations by a number of theoperational management team. A live webcast of the capital markets day will be available starting at 2.30pm(BST) on Wednesday 18th September 2013 for analysts and investors. To register: Webcast: http://mediazone.brighttalk.com/event/h2glenfern/908075ea2c-7897-intro International dial in: +44 (0) 20 3003 2666, Password: Capital Markets Day The presentation slides will be posted and available for viewing on theInvestors section of the Caracal Energy website (www.caracalenergy.com) onThursday 19th September. 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 Companyentered into three production sharing contracts ("PSCs") from the government ofthe Republic of Chad. These PSCs provide exclusive rights to explore anddevelop reserves and resources over a combined area of 26,103 km2 in southernChad. The PSCs cover two world-class oil basins with development opportunity,oil discoveries, 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," "will", "should," "could," "project,"'likely", "anticipate," "aim," "target," "expects," "seeks" and similarexpressions and words of similar meaning. These statements reflect the beliefsand expectations of the Company and involve risk and uncertainty because theyrelate to events and depend on circumstances that will occur in the future.Information relating to reserves and resources is deemed to be forward-lookinginformation, as it involves the implied assessment, based on certain estimatesand assumptions, that the reserves and resources described exist in thequantities predicted or estimated, and can be profitably produced in thefuture. No representation is made that any of these statements or forwardlooking statements will come to pass or that any results will be achieved.Specific forward-looking statements included in this press release includecomments related to the expected timing of drilling and facilities advancement;potential production rates; expected completion of well servicing operations;development of the fields described; expected results of the Krim prospect; andother matters. Subject to applicable securities laws, the Company and itsdirectors, officers, employees or affiliates do not undertake any obligation torevise this forward-looking information, to correct any inaccuracies which maybecome apparent, to publicly announce the result of any updates or revisions tothe statements made, and any opinions expressed in them are subject to changewithout notice. This cautionary statement expressly qualifies theforward-looking information and statements contained in this press release.Well-test results are not necessarily indicative of long-term performance or ofultimate 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 / Georgia Mann+ 44 (0) 207 8313 3113caracalenergy.sc@fticonsulting.com