Message #8 From:
NewsBot Date: October 11, 2006 01:30:00 PM
TXLA News Texola Energy Provides Update on Chinchaga Prospect in Northern Alberta
VANCOUVER, B.C.--(BUSINESS WIRE)--Texola Energy Corp. (‘Texola’
or the ‘Company’)
(OTCBB:TXLA) has been advised by its partners that the re-entry of
the initial Chinchaga well (8-24-95-8W6) will commence as planned on or
about December, 2006 and will take approximately 18 days to reach final
depth.
The Chinchaga prospect is a farm-in with Suncor Energy Inc. where Texola
and partners can earn a 100% working interest in approximately 18,000
acres of leases owned by Suncor. The leases are south of the Hamburg
field and are flanked by the Cranberry and Ladyfern fields. Texola and
partners will earn a 100% interest in the first 7,000 acres by drilling
the first well and will have the option to earn the remaining acreage by
drilling a second well in 2007. Suncor will retain a 12.5% gross
overriding royalty on the lands. The Chinchaga exploration wells are in
a winter only location. The first well was initially spudded March 2006
but drilling was suspended due to the approach of spring break-up.
Chinchaga, Alberta is known for some of North America’s
most prolific gas fields, the most prominent being the 450 BCF Cranberry
field, the 430 BCF Hamburg field and more recently the 450 BCF Ladyfern
field. These fields all produce from the upper Devonian Slave Point
formation where the leached and fractured limestone provides a highly
permeable and porous reservoir capable of producing more than 50 million
cubic feet of gas per day during their first year of production. The
entire Slave Point formation in north-central Alberta and British
Columbia is estimated to contain 7 TCF gas in place.
The high carbonate content of the off-bank strata at Ladyfern previously
made seismic imaging of the Slave point formation in similar areas
virtually impossible prior to the 1990s. Since then, advances in 3D
seismic, reprocessing of data and a new understanding of the area’s
characteristics have opened a window of opportunity in the less densely
drilled areas to the south of three previously mentioned gas fields.
Chinchaga is one of these very high quality prospects which was
generated by Suncor Energy Inc. after a careful evaluation of geologic
studies including sample work of virtually all offsetting wells, seismic
modeling, reprocessing and reinterpretation, combined with a 3D seismic
survey covering the leases.
We look forward to providing updates on this very exciting prospect once
we are in receipt of the same.
About Texola Energy Corp.
Texola is an emerging, growth oil and gas exploration company focused on
providing exceptional shareholder value and appreciation by finding,
exploring and developing large scale, early stage oil and gas projects
in North America.
To achieve this goal, the Company has recently undertaken various
exploration initiatives, one of which is an early stage exploration
prospect in Nevada, USA, and the second is located in Northern Alberta,
Canada. Both of these projects offer the Company the potential to
exploit and develop large, world-class reservoirs.
This news release contains “forward-looking
statements”, as that term is defined in
Section 27A of the United States Securities Act of 1933, as amended, and
Section 21E of the United States Securities Exchange Act of 1934, as
amended. Statements in this press release, which are not purely
historical, are forward-looking statements and include any statements
regarding beliefs, plans, expectations or intentions regarding the
future. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. These
forward-looking statements are made as of the date of this news release
and Texola assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ
from those projected in the forward-looking statements. Although Texola
believes that the beliefs, plans, expectations and intentions contained
in this press release are reasonable, there can be no assurance those
beliefs, plans, expectations, or intentions will prove to be accurate.
Investors should consider all of the information set forth herein and
should also refer to the risk factors disclosed in Texola’s
periodic reports filed from time-to-time with the Securities and
Exchange Commission and available at www.sec.gov.
