Welcome!

News Feed Item

Contact Exploration's Kakwa Development Continues With Successful Multi-well Pad Drilling

CALGARY, ALBERTA -- (Marketwired) -- 08/20/14 -- Contact Exploration Inc. ("Contact" or the "Company") (TSX VENTURE: CEX) is pleased to announce that the three Contact operated wells, at 2-18-63-5 W6M, 8-20-63-5 W6M and 9-20-63-5 W6M (collectively, the "New Wells"), drilled from the Company's first three-well pad, have each been successfully completed. Contact holds a 25% working interest in the New Wells.

Each of the New Wells was drilled with lateral lengths exceeding 1,900 meters, being approximately 50% longer than the average lateral length of wells previously drilled by Contact at Kakwa, with each being drilled and completed on time and budget. The New Wells have undergone testing for a longer duration than Contact's previous Kakwa wells in order to assist with the recovery of the additional frac water volumes pumped in connection with completing these longer wells.

Contact is very encouraged with the test results from the New Wells. Contact expects the 16-7 compressor station ("16-7 Facility") existing capacity of approximately 15 mmcf/d of natural gas and associated liquids to be fully utilized once the New Wells are placed on production, adding to the production volumes from Contact's existing Kakwa wells. In keeping with the Company's practices, Contact expects to announce the initial 30 day production volumes from the New Wells in due course.

The New Wells are currently being equipped for start-up in September 2014, however, the Company has been advised by the mid-stream gas plant operator of a 16 day scheduled plant turn-around in mid-September 2014. Contact anticipates that all Company production will be shut-in for the duration of this turn-around. Accordingly, the New Wells may not be fully producing until October 2014.

The Company continues to utilize two rigs in its ongoing Montney Kakwa horizontal drilling program. In addition, Contact has recently equipped its Upper Montney operated well (25% WI) with an artificial lift and expects to see initial results from this operation in mid-September 2014.

Contact is currently designing an expansion to its operated 16-7 Facility (25% WI) to increase capacity to up to 30 mmcf/d of natural gas and associated liquids, with a targeted start-up for this expansion of Spring 2015.

About Contact Exploration Inc.

Contact Exploration Inc. is a public oil and gas company which has a long-term history of operating in Atlantic Canada and has recently demonstrated success in Alberta's liquids-rich Montney Formation tight gas play. For more information, please see the Company's website: www.contactexp.com.

ADVISORY ON USE OF "BOEs": "BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "continue", "estimate", "may", "will", "should", "believe", "plans", "cautions" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains statements concerning the timing for the Company to announce the initial production results from the New Wells; the timing for start up of the New Wells; the down time expected at the mid-stream gas plan in mid-September 2014 and its effect on the Company's production; the expected timing for initial results from the Upper Montney operated well; and the expansion and anticipated timing for completion and start up of the expansion of the 16-7 Facility, among others.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Contact which have been used to develop such statements and information but which may prove to be incorrect. Although Contact believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Contact can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. In particular, in addition to other factors and assumptions which may be identified herein, no assurances can be given respecting: whether the Company's exploration and development activities respecting the Deep Basin Montney project will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; that the results of any production test will be indicative of the long-term performance of the New Wells or of ultimate recovery from the New Wells; the ultimate size and scope of any hydrocarbon bearing formations at the Deep Basin Montney project; that additional drilling operations in the Deep Basin Montney project, including at the New Wells and the Upper Montney operated well, will be successful such that further development activities in this area is warranted; that Contact's efforts to raise additional capital will be successful; that Contact will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the accuracy of the estimates of Contact's reserve volumes; the general stability of the economic and political environment in which Contact operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Contact to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Contact operates; and the ability of Contact to successfully market its oil and natural gas products.

Further, events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Contact or by third party operators of Contact's properties, increased debt levels or debt service requirements; inaccurate estimation of Contact's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Contact's public disclosure documents. Additional information regarding some of these risk factors may be found under "Risk Factors" in the Company's Management Discussion and Analysis prepared for the year ended March 31, 2014. The reader is cautioned not to place undue reliance on this forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Contact Exploration Inc.
Steve Harding
President and CEO
(403) 771-1091
(403) 695-3915 (FAX)
[email protected]
www.contactexp.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Inzata is a powerful, revolutionary data analytics platform for integrating, exploring, and analyzing data of any kind, from any source, at massive scale. Powerful AI-assisted Modeling and a patented analytics engine help users quickly load, blend and model raw and unstructured data into powerful enterprise data models, actionable real-time analytics and engaging visualizations. Go beyond spreadsheets and slides and compose a powerful narrative about how your business is performing, and how y...
Atmosera delivers modern cloud services that maximize the advantages of cloud-based infrastructures. Offering private, hybrid, and public cloud solutions, Atmosera works closely with customers to engineer, deploy, and operate cloud architectures with advanced services that deliver strategic business outcomes. Atmosera's expertise simplifies the process of cloud transformation and our 20+ years of experience managing complex IT environments provides our customers with the confidence and trust tha...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO Silicon Valley 2019 will cover all of these tools, with the most comprehensive program and with 222 rockstar speakers throughout our industry presenting 22 Keynotes and General Sessions, 250 Breakout Sessions along 10 Tracks, as well as our signature Power Panels. Our Expo Floor will bring together the leading global 200 companies throughout the world of Cloud Computing, DevOps, IoT, Smart Cities, FinTech, Digital Transformation, and all they entail. As ...
Wasabi is the hot cloud storage company delivering low-cost, fast, and reliable cloud storage. Wasabi is 80% cheaper and 6x faster than Amazon S3, with 100% data immutability protection and no data egress fees. Created by Carbonite co-founders and cloud storage pioneers David Friend and Jeff Flowers, Wasabi is on a mission to commoditize the storage industry. Wasabi is a privately held company based in Boston, MA. Follow and connect with Wasabi on Twitter, Facebook, Instagram and the Wasabi blog...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional data management practices to copy data between different developer and test environment. This problem doesn't scale as teams are adopting faster software release cycles. In this session, Dhiraj Sehgal in Product and Solution at Delphix, will talk about DevOps and cloud-focused strategies to update hundreds of developer and test copies with updates from a master...
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understa...
Most modern computer languages embed a lot of metadata in their application. We show how this goldmine of data from a runtime environment like production or staging can be used to increase profits. Adi conceptualized the Crosscode platform after spending over 25 years working for large enterprise companies like HP, Cisco, IBM, UHG and personally experiencing the challenges that prevent companies from quickly making changes to their technology, due to the complexity of their enterprise. An accomp...
Big Switch's mission is to disrupt the status quo of networking with order of magnitude improvements in network e ciency, intelligence and agility by delivering Next-Generation Data Center Networking. We enable data center transformation and accelerate business velocity by delivering a responsive, automated, and programmable software-dened networking (SDN) fabric-based networking solution. Traditionally, the network has been viewed as the barrier to data center transformation as legacy networkin...
Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throughout enterprises of all sizes. We are offering early bird savings...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereum.
Lori MacVittie is a subject matter expert on emerging technology responsible for outbound evangelism across F5's entire product suite. MacVittie has extensive development and technical architecture experience in both high-tech and enterprise organizations, in addition to network and systems administration expertise. Prior to joining F5, MacVittie was an award-winning technology editor at Network Computing Magazine where she evaluated and tested application-focused technologies including app secu...
Every organization is facing their own Digital Transformation as they attempt to stay ahead of the competition, or worse, just keep up. Each new opportunity, whether embracing machine learning, IoT, or a cloud migration, seems to bring new development, deployment, and management models. The results are more diverse and federated computing models than any time in our history. Unfortunately, there is no single deployment model that solves all of your business goals. You need to maintain the fl...
Only Adobe gives everyone - from emerging artists to global brands - everything they need to design and deliver exceptional digital experiences. Adobe Systems Incorporated develops, markets, and supports computer software products and technologies. The Company's products allow users to express and use information across all print and electronic media. The Company's Digital Media segment provides tools and solutions that enable individuals, small and medium businesses and enterprises to cre...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...