|By Marketwire .||
|September 20, 2012 09:21 PM EDT||
CALGARY, ALBERTA -- (Marketwire) -- 09/21/12 -- Canadian Quantum Energy Corporation ("Canadian Quantum" or the "Company") (TSX VENTURE:CQM) announced today that the 16-11-56-27W4 ("16-11") well, which swab tested oil from both the Alexander and Detrital zones, was production tested commencing July 3rd, 2012. After an initial test that only produced water, the Alexander sand was isolated from the Ellerslie and Detrital zones that had been perforated during completion and was production tested at a rate of approximately 16 m3 of fluid per day with oil cuts of up to 3% over a forty day period. The 16-11 well was then shut-in pending a complete technical review of all of the available data. The technical review included the integration of the data from a nine square mile 3D seismic program that was shot, processed and interpreted subsequent to the drilling the 16-11 well, as well as recently released confidential well information from the offsetting Petro-Reef 9-12-56-27W4 ("9-12") well which was drilled roughly 1.5 km east of the 16-11 well. The 9-12 well has been a solid producer from the Detrital zone over the last year with a reported average 90 day initial production rate of 117 barrels of oil equivalent / day ("boe/d") and an average 365 day initial production rate of 98 boe/d. After integrating the data from the 9-12 well with the Company's 3D seismic data and log and production data from the 16-11 well it was determined that the 16-11 well was unfortunately not drilled in the optimum location for oil production from either the Detrital or the Alexander formations. Although the 16-11 well is currently shut-in, the Operator and Canadian Quantum are now proceeding to license three additional locations that directly offset the 16-11 well. The drilling of these test wells is contingent upon the Company securing the funding through either an equity raise, convertible debt or by bringing in one or more joint venture partners. The first of the three new wells to be drilled will be a nearby offset to the 16-11 well specifically targeting the Detrital Sand.
Douglas Brett, Canadian Quantum's President and CEO states "Although our 16-11 well was not a commercial success we have proven that the zones that are productive in the immediate area, exist on our lands and that they are "oil bearing". The lower Detrital zone, which was not well developed in our 16-11 well, did test oil with a low water cut and will be better exploited in the three offset wells which we plan to drill in the near future. Our new locations will have the added advantage of 3D seismic and new offset well data and will be specifically targeted for the Detrital Sand."
Canadian Quantum Energy Corporation holds 640 gross acres at Turin, Alberta and 17,280 gross acres / 27 sections (8,640 net acres) on the Alexander First Nations Permit in Central Alberta along with various interests in approximately 174,000 gross acres covered by four permits in the St. Lawrence Lowlands, Quebec Utica Shale Play.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, is forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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.