Message #7 From:
Stock News Bot Date: September 16, 2005 11:09:50 AM
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Quest Oil Announces Updated Acadia North Viking Gas Reservoir
HOUSTON, Sept. 12, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL) provides disclosure on the improved Acadia North gas reservoir and anticipated production tie-in of wells "10-22" and "15-34".
Quest Oil has received the Chapman Engineering Report on the Acadia North Gas Project dated September 1, 2005. This report includes the data received from drilling wells "10-22" and "15-34" which has allowed for the interpretation of data on the Arneson Viking gas pool size, thickness and pressure.
Arneson Viking Pool Pre-Drilling
Pre-drilling estimate of the pool size as per Chapman report states an estimation of 8 BCF of gas in the pool.
Gas under Company land was estimated at 0.827 BCF Proved Reserves plus an additional 1.038 BCF of Probable and 1.010 BCF of Possible Reserves.
Arneson Viking Pool Post Drilling
Post drilling estimate of the gas pool size as per the revised Chapman report is 19 BCF.
Gas under Company lands is now estimated at 1.859 BCF of Proved Reserves plus an additional 1.169 BCF of Probable and 1.169 BCF of Possible Reserves.
It is now believed that gas pool under Company lands for "10-22" gas well to be 1.9 BCF proven, when inclusive of probable and possible reserves, a total estimate of 4.2 BCF could be realized. With the completion of data analysis the Company's PV 10 value for the Acadia North project is stated in the report as $8.7 million for the Proved Reserves and $17 million for the Proved, Probable and Possible Reserves category. Revenue over the life of the project is forecast at $24 million.
Further, with the Company having the successful high bid on the recent Alberta land sale, the company can now include and expand its proven gas reserves to include gas that is known to be under section 23-25-2w4m. This will further increase the Company's proven gas reserve and PV 10 value when calculations are complete.
Cameron King, Company President and CEO states, "Quest has proven its mandate that the Arneson Viking gas pool is a significant gas play with enormous growth and profitability opportunities. Quest is planning to develop the area quickly and economically by drilling our new lands and joint venturing with the surrounding land owners. Management is in the process of contracting 3D seismic crews to assemble detailed mapping to fully understand the scope of the Viking Pool. The Company is planning to drill four wells over the course of the next few months, to aggressively bring the reserve to market sooner than previously planned.
Arneson Well 10-22-25-2-W4M
The Company's "10-22" gas well is scheduled to put in to production by mid-October 2005. With data now recovered and verified from testing, Quest has begun the process of permitting, licensing, trenching and receiving county approvals. All companies must follow the time consuming process of obtaining regulatory and administrative approval, before bringing gas wells on stream. Gas well "10-22" will be brought on stream at 2 mmcf/d realizing gross income of $600,000 monthly. Management will increase flow rate to 4 mmcf/d if there are no indications of water or substantial pressure decline in the well.
Arneson Well 15-34-25-2-W4M
Testing of the "15-34" well will be commencing the week of September 12 for the next 4-6 days as Absolute Open Flow (AOF), down hole pressures and draw down rates need to be determined prior to determining the economics of this well. The Company has previously tested the well and encountered high wellhead pressure measured during the drilling out process and is encouraged that well "15-34" will be deemed commercially viable and tied-in to the nearby Altagas pipeline.
Arneson Section 23-25-2-W4M
The Company acquired the lease by submitting a successful high bid of $60,100 for the 640 acre section bring the total land rights owned by Quest to 1,920 acres. The new lands are 100% owned by Quest and carry no over riding royalties other than Provincial Crown royalties. Acadia Project Specialist, Richard Johnson P.Eng stated: "The new land is important because the Viking sand found in the 10-22 well shows that the sand pool is larger than originally mapped. An abandoned well on the newly purchased section shows gas in the Viking log. Geological mapping now indicates that more reserves are present on section 23 than the original maps indicated," Richard Johnson further stated, "The high reservoir pressure and the thick sand found in the 10-22 well form the basis for the increased reserves shown in the Independent Engineering report. This new data has more than doubled their original reserve estimate. A 3-D seismic program will permit the optimizing of further wells on this sand body. It is anticipated that we will see similar gas pressure and high deliverability on new wells."
Quest Oil Extends Acadia North Land Position
HOUSTON, Sept. 9, 2005 (PRIMEZONE) -- Quest Oil Corporation ("Quest" or the "Company") (OTCBB:QOIL) is pleased to announce that it was successful with its recent bid in the Alberta Crown Land sale. The acquired lease is on a section of land immediately offsetting its recent successfully drilled gas wells at Acadia North.
Quest bid on the lease at the Alberta Crown Land sale on September 7 and has acquired a five year lease on section 23-25-2w4m. This land is immediately east of the section on which the "10-22" gas well was drilled. Geological mapping and seismic data indicate that the Viking sand reservoir continues onto this section.
This acquisition is important to the company because it allows the company to continue development of this gas pool. The company is currently considering shooting a 3-D seismic program over these two sections to optimize its next well location. The company believes that the high deliverability shown by the "10-22" well can be reproduced on future wells by proper interpretation of the geology of this sand reservoir.
The Company's gas well "15-34" is scheduled for flow testing next week to determine the well capability for commercial flow rates. The Company has decided not to remove the motor and tooling from the well bore due to its extensive cost associated with the service rig and manpower. After extensive review of logs and completed depth, it is believed the motor and tooling have exited through the casing and will not interfere with production.
Quest Oil: Empress 12-15 Gas Well Reaches Depth and Sets Production Casing
ARLINGTON, Texas, Sept. 7, 2005 (PRIMEZONE) -- Quest Oil Corporation (OTCBB:QOIL), is pleased to announce the Company's Empress 12-15-24-2w4m gas well was drilled to depth of 3231 feet to bottom the Bakken Formation. Quest has logged and performed extensive drill stem testing (DST) which have resulted in multiple indications of natural gas in the well bore.
The Company has authorized the operator, Transaction Oil and Gas Services, to set production casing and cement into the bore hole. The Company has requested Operator to schedule a service rig to perforate and flow test the well at the three strongest gas anomalies in the Viking, Ditrital and Bakken gas pools.
Empress Prospect: Eastern Alberta
Quest Oil owns a 100% working interest in the Empress gas prospect, the well at 12-15-24-2w4m, is a stepout from a well 1/2 mile away that discovered commercial gas capable of producing 1.5 MMCPD in the Detrital sand and tested natural gas from two deeper zones. Pressure analysis indicates that large reserves remain in the Viking zone which produces from lands immediately north of the Empress Prospect.
Geological mapping indicates that the reservoir extends under the Prospect lands. DST shows, mapping and seismic indicate oil and gas potential in the Bakken, Banff and Detrital formations and gas potential in the Colony, Viking and Second White Specks zones.
By completing the drilling on the first well on the Empress concession, the Company has earned the right to the original four sections in the Empress concession. By completing the first well, "12-15", the Company earned the option to drill on three additional sections. Each of these three sections needs to be drilled within consecutive, subsequent 60 day periods in order to earn the rights to produce from those individual sections. At this point management intends to drill each of these three sections.
Quest Oil: Acadia North 10-22 Gas Well Flow Rates and Empress Well 12-15 Spuds and Sets Surface Casing
ARLINGTON, Texas, Aug. 25, 2005 (PRIMEZONE) -- Quest Oil Corporation ("Quest" or the "Company")(OTCBB:QOIL) is pleased to announce that analysis of the test on its Acadia 10-22-25-2w4m has been completed. The well has a calculated Absolute Open Flow Potential of 58 Million Cubic Feet per Day (MMCFPD). The Company's engineering firm, CHAPMAN Engineering, advised the Company that it has an estimated "gas-in-the-ground" value of $17.67 million.
After a review of a number of recent projects in the area, Chapman Engineering has prepared an overview of the numbers based on the latest pricing of gas and determined that at a value of $4.00/Mscf of developed reserves would be a reasonable assumption. These values may be subject to change after the final detailed cash flow analysis has been completed.
Marketable reserves for well 10-22 have been estimated volumetrically as presented below. These reserves are supported by material balance of this Viking pool. Effective drainage area and recovery factors are the main variables in this determination, resulting in a range of volumes for different reserve categories, all of which are governed by Chapman's confidence factors.
Category Volume - Value @ $4.00/Mscf -
MMscf $MM
Proved Developed 1957 $7.83
Proved Plus Probable 3187 $12.75
P+P+P 4418 $17.67
Chapman Engineering stated, "Well 10-22 is a highly capable well (18 MMscf/d surface AOF), which we anticipate will be produced at about 2.0 MMscf/d with minimal drawdown to maximize recovery."
Quest also has commenced drilling on the Empress project, well 12-15-24-2w4m. This well is approximately 7 miles south of the Acadia project. This is a deeper well than the Acadia wells and even though the Viking zone is a prospective horizon in this project, the main target is the Detrital and two Mississippian zones that had hydrocarbon in a well 1/2 mile west of the 12-15 drill site. Results of the testing of the offset well are still confidential but are known to be very commercial. Logging and testing of the 12-15 well are expected to in the next few days.
About Quest Oil Corporation
The Company is committed to the exploration and development of economical oil and natural gas reserves globally. Quest management is focused on an acquisition program targeting high quality and low risk prospects. Initially Quest is focused on the development of North American oil and gas resources allowing highly leveraged production opportunities in Alberta and Texas, through its 100% owned subsidiaries Quest Canada Corp. and Wallstin Petroleum LLC.
On Behalf Of The Board
Quest Oil Corporation
"Cameron King"
Cameron King MBA - President and CEO
To find out more about Quest Oil Corporation (OTCBB:QOIL), visit our website at www.questoil.com.
CONTACT: Quest Oil Corporation
Mr. Darren Hayes, Corporate Development
(866) 264-7668
Source: PrimeZone (August 25, 2005 - 6:00 AM EDT)
