Click here to close now.


News Feed Item

PRD Energy Announces Operational Update

CALGARY, ALBERTA -- (Marketwired) -- 08/28/14 -- PRD Energy Inc. ("PRD" or the "Company") (TSX VENTURE:PRD) announces completion of its financial statements and operating results as at and for the six months ended June 30, 2014 and provides an operational update on activities to date as well as an outlook for the remainder of 2014. The Company's interim condensed consolidated financial statements and management's discussion and analysis for the reporting period will be filed today on SEDAR at and posted on the Company's website at

Development of the Volkensen Production Licence

In early August, the Company applied for a four well development permit on its Volkensen Production Licence. Volkensen is an oil pool which was abandoned in 1993 after producing approximately 900,000 barrels. The Company believes that potential recoveries can be enhanced through a three stage development plan:

--  Stage 1: Drill two horizontal wells adjacent to the existing vertical
    wells based on existing 2D seismic, well control, reservoir data and
    other geological data available to the Company. This stage is expected
    to evaluate reservoir pressures, flow rates, and logs, amongst other
    things, to be used in stage 2 of the development. 
--  Stage 2: Drill two additional horizontal wells from the existing pad
    after the completion of the first two horizontal wells and evaluation of
    the planned 3D seismic program described below. 
--  Stage 3: Development of several additional wells depending on the
    results of the completed development program. 

Subject to the receipt of all required regulatory approvals, site construction and drilling for the first stage is expected to commence in the fourth quarter of 2014 and continue into the first half of 2015.

The Volkensen well site design is expected to significantly reduce the environmental impact associated with large concrete pad structures typically utilized in the North West German Basin. The proposed matting and asphalt design is anticipated to have a secondary benefit of reducing costs of construction and remediation especially. This approach should also reduce the well site footprint, particularly when combined with the surface benefits of horizontal drilling.

Volkensen/Sittensen Seismic Program

The Company has commenced the permitting of a 90 sq. km 3D seismic program for its Volkensen and Sittensen licences. Early indications from both the reservoir and 2D seismic data obtained to date have led the Company to believe that its Sittensen licence is highly prospective for conventional horizontal oil development. Subject to the receipt of all required regulatory approvals, the seismic program is expected to start in the fourth quarter of 2014 and be completed and interpreted in the first quarter of 2015.

The seismic data is expected to enable the Company to further delineate Volkensen and four additional high impact exploration prospects which it has identified to date. Other pools in the North West German Basin with reservoir intervals and trapping geometries similar to the Company's prospects have each recovered more than five million barrels of oil during their development. The seismic program will be funded from existing cash balances at a cost of approximately $5,000,000 CDN.

PRD is the operator and 100% holder of both the Volkensen and Sittensen licences, subject to a 50% back-in right in favour of the prior operator in respect of the Volkensen production licence only. Given the scope and prospects of these licences, the Company is evaluating one or more farm-out transactions with strategic partners with the goal of increasing activity and development on the Company's other licences.

Boerger Field

PRD has received an expanded 3D seismic data set covering the Boerger field and surrounding area. It has completed its reprocessing of this data and submitted a field development plan to the operator, which the operator is currently reviewing. The Company is also in discussions with the operator to become the designated operator for all future field re-development in order to accelerate development timeframes for this pool. The Company has proposed drilling two wells from the Boerger 7A well site in the first quarter of 2015 as the next stage of development for the Boerger pool. In effect, the Company's accelerated Volkensen development drilling has substituted the well development activity originally planned for Boerger in the last quarter of 2014.

The operator and the Company completed facility modifications at Boerger 7A during June, 2014 and are assessing the effectiveness of these modifications. In that regard, the operator has shut-in production in order to carry out certain pressure transient tests and is expected to produce the Boerger 7A well intermittently for the remainder of the third quarter. Since being placed on production, the Boerger 7A well has completed 102 operating days between February 24 and June 30, 2014 and produced a total of 15,729 barrels of oil. PRD is encouraged by the initial results of this well, however feels that the well is not producing to its full capability due to production being limited to a portion of the horizontal length. The Company has proposed a work-over plan to the operator utilizing an acid squeeze to improve productive capability, a method which the Company believes would optimize completion methods for future wells.

The Boerger 7A well represents a significant milestone in the Company's development which it can use to expand its business in Germany over its significant land position. This operation has provided the Company with valuable operating experience which it is currently using to develop cost reduction strategies to apply to its independent operations elsewhere in Germany. Further, the knowledge gained of the regulations and regulatory process, the understanding of the local service company dynamics, and our improved public communication methods which incorporate transparency to all German stakeholders, are all as a result of drilling Boerger 7A. The permitting for the development of Volkensen and the 3D seismic shoot over the Volkensen and Sittensen Licences stand to be substantial beneficiaries of this experience which bodes well for our ability to be able to substantially increase activity in 2015 and beyond.

Other Licences

The Company recently obtained legacy geophysical and production data over one of its production licences from one of the largest oil & gas companies in the North West German Basin marking the first transaction between PRD and this company. This transaction expands the Company's strategic access to legacy data which is an important step in advancing activity on its licences. The Company is evaluating the data received to date.

PRD is continuing to augment its understanding of its existing land base of 2,413,300 acres with improved access to data of Germany's major oil & gas companies. Management has recently completed a technical review of its existing licences and prospects resulting in the high-grading of certain exploration and production licences. These licenses are expected to be the focus of corporate activity in late 2015 and throughout 2016.

PRD remains committed to the German marketplace both environmentally and economically. In the last twelve months, the Company has increased its staffing levels in Germany from three professionals to over ten while continuing to manage its general and administrative expenses to a modest level. We are committed to expanding our business in Germany with highly skilled German people and expect to continue to increase employment in the country. World class netbacks and an attractive underdeveloped geologic environment, combined with the current geopolitical situation in Eastern Europe, provide incentives for both the oil and gas industry and its stakeholders to progress with development of Germany's vast natural resources.

About PRD Energy

PRD Energy Inc. is a Calgary based oil and gas company engaged in the exploration, development and acquisition of, natural gas and crude oil in Germany. PRD's common shares are listed on the TSX Venture Exchange with the symbol "PRD".

Forward looking information

This news release contains forward-looking information relating to enhancing potential recoveries from the Volkensen oil pool, expected results from first stage of the Volkensen development program, expected timing for commencement of the first stage of the Volkensen development program, environmental impacts and reduction of costs associated with operations, prospectivity of the Sittensen licence, expected timing for commencement and completion of the Volkensen/Sittensen seismic program and costs and funding in respect of that program, delineation of exploration prospects, production from the Boerger 7A well, optimizing production capabilities of future wells, cost reduction strategies, focus of corporate activities in 2015 and 2016, expanding the Company's business in Germany and other statements that are forward-looking in nature. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.

Forward-looking information is based on certain factors and assumptions regarding, among other things, the Company's licenses, and in particular: (i) statements relating to the development of the Volkensen license including wellsite construction and drilling plans are based on a variety of assumptions including, the Company's ability to obtain permits by the end of October 2014, the reservoir pressure and net pay, and the economic feasibility; (ii) statements relating to the seismic program, the source of funding for the shooting the seismic and the results from the seismic data are based on a variety of assumptions including the Company's ability to obtain permits by the end of October 2014 and PRD Energy's ability finance or farmout a portion of the license; and (iii) statements relating to the ability of the Company to successfully increase production through the completion of a workover, are based on a variety of assumptions including that the Company will be named operator, the Company will obtain permits in a timely manner for additional wells and that PRD Energy will successfully complete a workover on the wells, the future performance of the Boerger 7A well, the success of future exploration and development activities, the impact of increasing competition; the general stability of the economic and political environments in which the Company operates or owns interests; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability to operate in a safe, efficient and effective manner; the ability of the Company to obtain financing to fund its operations on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with the failure to obtain permits when expected, the failure identify economic operations in the Boerger pool following the proposed work-over, declining production from the Boerger 7A well, timing of field operations at Volkensen and Sittensen and the ability to attract a joint venture or farm-in partner, instability of the economic and political environments in which the Company operates or owns interests, ability to manage water production and disposal, oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, the inability to settle the definitive terms of the farmout arrangements, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals, inability to obtain approvals from the Company's partners in operations, and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.

Certain information contained herein is considered "analogous information" as defined in National Instrument 51-101 ("NI 51-101"), including the production history for areas outside the Company's Sittensen and Volkensen licences. Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and PRD is unable to confirm whether such information has been prepared by a qualified reserves evaluator. Such information is based on independent public data and public information received from other producers and PRD has no way of verifying the accuracy of such information. Such information has been presented to help demonstrate the basis for the Company's business plans and strategies. There is no certainty that such results will be achieved by PRD and such information should not be construed as an estimate of future reserves or resources or future production levels from the Company's licences.

You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.

Neither the 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.

PRD Energy Inc.
Michael Greenwood
Chairman and Chief Executive Officer
(403) 234-0501
(403) 234-0511 (FAX)

PRD Energy Inc.
Mark Hornett
President and Chief Operating Officer
(403) 234-0501
(403) 234-0511 (FAX)

PRD Energy Inc.
Jeff Scott
Vice President, Finance and Chief Financial Officer
(403) 234-0501
(403) 234-0511 (FAX)

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
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, will explore HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, will review the current landscape of...
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi's VP Business Development and Engineering, will explore the IoT cloud-based platform technologies driv...
In their session at DevOps Summit, Asaf Yigal, co-founder and the VP of Product at, and Tomer Levy, co-founder and CEO of, will explore the entire process that they have undergone – through research, benchmarking, implementation, optimization, and customer success – in developing a processing engine that can handle petabytes of data. They will also discuss the requirements of such an engine in terms of scalability, resilience, security, and availability along with how the archi...
DevOps is gaining traction in the federal government – and for good reasons. Heightened user expectations are pushing IT organizations to accelerate application development and support more innovation. At the same time, budgetary constraints require that agencies find ways to decrease the cost of developing, maintaining, and running applications. IT now faces a daunting task: do more and react faster than ever before – all with fewer resources.
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction....
Docker is hot. However, as Docker container use spreads into more mature production pipelines, there can be issues about control of Docker images to ensure they are production-ready. Is a promotion-based model appropriate to control and track the flow of Docker images from development to production? In his session at DevOps Summit, Fred Simon, Co-founder and Chief Architect of JFrog, will demonstrate how to implement a promotion model for Docker images using a binary repository, and then show h...
The last decade was about virtual machines, but the next one is about containers. Containers enable a service to run on any host at any time. Traditional tools are starting to show cracks because they were not designed for this level of application portability. Now is the time to look at new ways to deploy and manage applications at scale. In his session at @DevOpsSummit, Brian “Redbeard” Harrington, a principal architect at CoreOS, will examine how CoreOS helps teams run in production. Attende...
There will be 20 billion IoT devices connected to the Internet soon. What if we could control these devices with our voice, mind, or gestures? What if we could teach these devices how to talk to each other? What if these devices could learn how to interact with us (and each other) to make our lives better? What if Jarvis was real? How can I gain these super powers? In his session at 17th Cloud Expo, Chris Matthieu, co-founder and CTO of Octoblu, will show you!
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
Clutch is now a Docker Authorized Consulting Partner, having completed Docker's certification course on the "Docker Accelerator for CI Engagements." More info about Clutch's success implementing Docker can be found here. Docker is an open platform for developers and system administrators to build, ship and run distributed applications. With Docker, IT organizations shrink application delivery from months to minutes, frictionlessly move workloads between data centers and the cloud and achieve 2...
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text...
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.