Cuda Oil and Gas Inc. Announces Drilling Success, Higher Production Levels and Increasing Response to Injection at its Shannon Secondary Recovery Unit in the Powder River Basin, Wyoming
CALGARY, Alberta, Feb. 13, 2020 (GLOBE NEWSWIRE) — Cuda Oil and Gas Inc. (“Cuda” or the “Company”) (TSXV: CUDA) is pleased to announce a 100% success rate with the wells drilled to date as part of the Company’s ongoing drilling program at its Shannon Secondary Recovery Unit (“SSRU”) in the Powder River Basin, Wyoming, resulting in higher corporate production. The Company is also pleased to confirm that the reservoir response to the previously announced gas injection in oil producers around the first injection well at SSRU is translating into increased production.
Glenn Dawson, President and Chief Executive Officer of Cuda, stated: “The results of the first 13 wells of a 15 well drill program indicate a 100% success rate. Seven (7) wells are now onstream and are driving production higher.”Dawson also added: “Oil production from several wells surrounding the first injector (William Valentine) have increased in response to the injected volumes delivered in 2019. Field estimates for January 2020 continue to confirm this upward trend. The BFU 32-27 V Well increased to 65 bbls/d based on current field estimates, as compared to 44 bbls/d in August 2019, a 48% increase with only a minimal amount of injected volumes. The Company is expecting further increases in production as full commercial injection is implemented in Q1, 2020 and the flood advances in the reservoir. The Company is very pleased with this initial gas flood response, allowing the operator to accelerate development drilling of the project.”HighlightsDrilling commenced in late September 2019, with 13 wells successfully drilled and completed. Seven (7) wells are now on-stream and have increased current field estimates of production at SSRU to 1,250 bbls/d, 343 bbl/d net to the Company.A total of 41 oil wells, including the eight (8) injector patterns, will be operating by the end of Q1, 2020. Injection is currently ongoing at higher rates than the predicted reservoir modelling. The improved injectivity could be an indication of better permeability which could lead to oil production response ahead of forecast and acceleration of the predicted recovery cycle of the project.About Cuda Oil and Gas Inc.Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.For further information please contact:Glenn Dawson
President and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862Forward-Looking InformationThis news release contains forward-looking information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, this news release includes forward-looking information relating to anticipated production increases as a result of development drilling and the Company’s gas flood project, exploration and development activities, and activity levels in the Company’s core areas. Risk factors that could prevent forward-looking statements from being realized include market conditions, third party and regulatory approvals, ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future oil and gas prices. Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.