|By Marketwired .||
|July 2, 2014 01:21 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/02/14 -- Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), today announced its initial production results from its operating oil and gas wells in its Leduc Lands.
On June 30, 2014 the Company completed its work over and commenced gas production for sales following the perforation of its existing 14-32-49-26W4 gas well. This existing well was perforated over a three meter interval at a depth of approximately 1,300 meters into the Ellerslie formation at a total work over cost of approximately $100,000. This well is currently producing gas at a daily average rate of 1,000 thousand cubic feet per day (mcfd) on a restricted choke of 12/64th of an inch. The Company is monitoring the production rates for optimization of production from the currently producing interval and considers the initial improved gas production from this well a significant success. The Company is currently receiving a gross gas purchase price at an average price of $4.26 per mcf.
In addition to the 14-32-49-26W4M well the Company has a 100% working interest in the wells 15-19-49-26W4M, 10-29-49-26W4M, 8-32-49-26W4M, and 13-33-49-26W4M and 60% in 11-33-49-26W4M well. Previous production from these wells prior to Hanwei's acquisition of its Leduc Lands has been minimal. Immediately following the completion of the acquisition and the transfer of the oil and gas rights to Hanwei the Company undertook minor chemical enhancements. Hanwei has invested approximately $2,400,000 on this acquisition and workover activities to date and has received net revenues for its April and May production of some $130,000.
Hanwei's oil and gas production business is focused on enhancing its Leduc Lands asset base and growing its cash flow from operations through development drilling within its core project area. The Company intends to generate production opportunities possessing low to medium risk from multi-zone potential.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is a leading manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies and services for the international oil and gas and infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets. The Company owns producing oil and gas mineral rights located near Edmonton, Alberta.
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FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES
Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company's Annual Information Form dated June 18, 2013 and Management Discussion and Analysis for the year ended March 31, 2013 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company's expectations as of the date of this press release.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS 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 DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.