19 Apr 2011 07:00
For Immediate Release (7 am)
19 April 2011
SOLO OIL PLC
("Solo" or the "Company")
Ausable Field, Canada
Solo Oil plc, the AIM listed International Oil and Gas exploration and development Company, today announces its Joint Venture partner Reef Resources Limited ("Reef") plans for the further development of the Ausable field in South Western Ontario.
Reef has indicated that it plans to carry out flow testing in the recently drilled Ausable #5 well and that the well is expected to be on production within six weeks. Reef has also announced its plan to prepare for the drilling of four additional wells in order to advance the development of the long term Enhanced Oil Recovery and Natural Gas Liquids Program.
Reef's announcement, to the Toronto exchange, states:
April 19, 2011 - Calgary, Alberta - Reef Resources Ltd. (REE - TSX.V) ("Reef" or the "Company") reports that the Company has agreed to complete and flow test the Ausable #5 well in SW Ontario, Canada.
A decision has been made to mechanically complete the well and to conduct flow tests on the basis of the existing data. Further analysis of electric logs and cores from the wells will continue.
Following production testing; the well will be connected to the existing central production facility and placed on production as an oil and natural gas liquids (NGL) producer. The Company's objective is to have the well on production within the next four to six weeks.
Due to the presence of extensive oil and natural gas liquids pay zones in the Ausable #5 well, the Company will now begin detailed scheduling for the drilling of the Ausable #6, #7, #8 and #9 wells and the expansion of the Ausable production facility. Currently it is hoped to complete this additional work by the end of 2011.
The Company will issue additional status reports during the testing and completion of Ausable #5 and as plans for the full Enhanced Oil Recovery and Natural Gas Liquids Program (EOR) are finalised. The Ausable reef is currently on production and is generating revenue from the initial EOR program which commenced in 4th quarter 2010 through the Ausable #1 and #4 wells.
Company President, Arnie Hansen, commented: "We see this as a turning point in the development of the Ausable Reef as the results of the well fully support our geological model and demonstrate the viability of the EOR scheme. We look forward to a busy period over the remainder of the year as we plan and execute the necessary well program."
Neil Ritson, Solo Executive Director commented:
"We are pleased that Reef have now committed to the testing of the Ausable #5 well and that they are actively considering how to further develop the potential of the field, work that we anticipate can be carried out largely with internally generated funds."
For further information:
Solo Oil plc David Lenigas Neil Ritson | +44 (0) 20 7440 0642 |
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish | +44 (0) 20 7628 3396 |
Shore Capital Joint Broker Pascal Keane Edward Mansfield | +44 (0) 20 7408 4090 |
Pelham Bell Pottinger +44 (0) 20 7861 3232
Financial Public Relations
Mark Antelme
Henry Lerwill
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.