pcNewsWire – 1885683 Alberta Ltd, a private oil company engaged in the operation, exploration, development, acquisition and production of light gravity crude oil in Manitoba, has raised $3.82 million two recent financings
1885683 Alberta commenced its first ever drilling program on June 13, 2017.
News Release
1885683 ALBERTA LTD PROVIDES UPDATE ON THE PIERSON MANITOBA DRILLING PROGRAM AND PRIVATE PLACEMENTS
TORONTO, ONTARIO — (June 27, 2017) – 1885683 Alberta Ltd (“188” or the “Company”) is pleased to announce that the Company’s first ever drilling program commenced on June 13, 2017. The three new horizontal wells are targeting the well-known Spearfish formation in southwest Manitoba. In addition, the Company closed two private placements for total gross proceeds of $3,820,000 to finance the 2017 Spring drilling program and to acquire additional undevelop lands.
Work Update
The 188 Pierson HZNTL A14-13-02-29 W1M and HZNTL B14-13-02-29 W1M wells have been drilled and the Company is now preparing to drill the third planned well HZNTL A01-06-02-28 W1M. 188 anticipates completing all three wells with multistage fracture stimulations by July 11th, 2017. The Company will consider drilling a fourth well after results from the first three wells. The first three wells are expected to be equipped and on production by July 25th, 2017, with production results available by the end of August 2017. The following link provides some photographs of the drilling: https://www.dropbox.com/sh/gvqfenjviohsoe3/AABuzSezLtBJcO1Par7N1BpHa?dl=0
Geology
The primary target for the wells in the Pierson area is the Spearfish Formation that exists at about 1,000-m depth. The best reservoir rock or “sweet spot” was determined through a detailed analysis of the best existing Spearfish wells in the surrounding area. A target window of +/- 0.5-m was given to the drilling crew and was drilled successfully in the first two wells. The third well target is expected to be drilled successfully in the next few days.
The A14-13-02-29 well landed on target, and remained in the target window, encountering fair to good reservoir through the entire length of the horizontal section. Intergranular porosity typically averaged between 5 – 10% and was occasionally observed as high as 15%. Oil shows were viewed throughout and an oil sheen was noted in the drilling samples. The B14-13-02-29 well also landed on target, and remained in the target window, encountering fair to very good reservoir through the entire length of the horizontal section. Intergranular porosity typically averaged between 6 – 12% and was often observed as high as 14%. Oil shows were viewed throughout and an oil sheen was noted in the drilling samples.
Financing
In December 2016 and March 2017, the Company raised $1,320,000 through the issuance of 6,600,000 flow through units and $2,500,000 through the issuance of 12,500,000 units, both at a price of $0.20 per unit. Each unit consists of one Class A common share of the Corporation and an oil and gas net profit interest (“NPI”). Each NPI consists of a semi-annual cash distribution equal to the subscriber’s pro rata share of seven (7%) percent net profits received from expenditure wells drilled, net of all production costs. As of today, the Company has 46,243,334 Class A common shares issued and outstanding.
About 1885683 Alberta Ltd
188 is an Alberta-incorporated emerging light oil private company engaged in the operation, exploration, development, acquisition and production of light gravity crude oil in Manitoba, Canada. For further details, please refer to our Canadian regulatory filings on SEDAR at www.sedar.com.
For further information please contact:
Ruben Shiffman, PhD, MBA, Executive Chairman
Jamie Carlson, P.Eng., B.Sc, President
Liese Mclaren, P.Geol., B.Sc, Senior Geologist
Corporate office
Suite 612, 390 Bay St. West, Toronto, Ontario, Canada M5H 2Y2
Telephone +1 647 273 9913
