Silver Star Energy Reports on MB Gas Well Testing at Manyberries Project, Albertaadmin
Silver Star Energy, Inc. reports on the completion and testing results from three Sawtooth formation gas wells at the MB Gas Project, located in the Manyberries area of Alberta, Canada. Silver Star and MB Gas Inc., based on the recently announced participation by the Company under the loan agreement, are currently working to tie in three natural gas wells owned and operated by Provident Energy Trust.
The 11-17 gas well was flow tested at rates of 600 Mcf per day with no water in well tests conducted between October 27 and November 24, 2006. Southridge Petroleum Consulting Ltd. of Calgary has estimated the potential for 2.4 Bcf gas at this location. The 11-17 wellhead is less than 1.5 miles from a pipeline in which MB Gas owns a majority interest.
The second well, the 6-7, is approximately 1.7 miles from the 11-17 well and was tested at flow rates that were held back to 300 Mcf per day to prevent damage to the well. A remedial cement squeeze is planned for the well and when tied-in to pipeline, an additional 1.7 Bcf has been estimated for this location.
The last Provident well is located 6 miles to the southeast of the 6-7 and requires re-completion and testing. Based on the observed pay in the well log, it has been estimated by Southridge Petroleum to have the potential to produce gas at rates between 700 and 2,000 Mcf per day. The well may contain 3.0 Bcf. Analogous wells in the area producing from Sawtooth formation reservoirs commonly produce somewhere between 1,000 and 2,000 Mcf.
The three wells are projected, when tied-in to pipeline, to produce gas at rates of between 1,300 and 3,000 Mcf per day and may have a combined potential of 7.1 Bcf.
This program is part of the 2007 development and operations plan to tie-in and produce natural gas from three Provident Energy wells and conduct well surveys to determine the geological potential of up to 20 Sawtooth Formation locations in the immediate vicinity of the pipeline. MB Gas Inc. plans to tie-in 5 currently shut-in or abandoned gas wells in the 2007 calendar year with the aim of producing in the 800 BOEPD range. Silver Star and its partner, MB Gas Inc. (a private Alberta oil and gas exploration company), are focused on the exploitation of targeted, low risk natural gas development opportunities in southeastern Alberta.
Notice Regarding Forward-Looking Statements.
This news release contains “forward-looking statements,” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the acquisition of oil and gas reserves, the potential operations of MB Gas Inc. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the numerous inherent uncertainties associated with oil and gas exploration. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2006 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission
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