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PRD Energy announces update on Boerger 7A Well, Volkensen and other licences

Tuesday, July 30, 2013

  • PRD has completed site preparation for the drilling of the Boerger 7A well with the use of a service rig.
  • The Company has applied for drilling permits over its Volkensen oil pool in Lower Saxony, Germany and expects to receive these permits during the fourth quarter of 2013 whereafter it will commence field activities in preparation for drilling.

PRD Energy Inc. (TSX VENTURE:PRD) is pleased to provide an operational update.

Boerger 7A Well Developments

PRD has completed site preparation for the drilling of the Boerger 7A well with the use of a service rig. Using a service rig, rather than a drilling rig as is customary in the local oil & gas industry, is consistent with the Company's strategy of implementing continuous cost improvement in the basin.

Mobilization of the drilling rig is well underway and PRD expects to begin drilling on August 2 or 3, 2013. Drilling will start from a depth of 680 meters and continue to a total vertical depth of approximately 1,800 meters with a 300 meter horizontal leg. Drilling is expected to be completed in August. Depending on drilling results, the Company expects to announce short-term production test results in mid-to-late September. The well is anticipated to cost approximately CAD$4.0 million to drill and complete (excluding facilities costs).

Upon establishing production, the Company will have satisfied its obligations to earn a 50% working interest in the Boerger Oil Pool under the terms of its arrangements with GDF Suez E&P Deutschland GmbH.

The Company is currently interpreting the 3D seismic data recently shot and processed over the Boerger Pool. PRD expects to evaluate additional future drilling locations in the Boerger Pool once it has completed its seismic analysis and obtained well logging and production results from the Boerger 7A well.

The Company does not intend to issue any further updates on the Boerger 7A well operations until the decision to production test has been made and the results of those tests have been released.

Volkensen Developments

The Company has applied for drilling permits over its Volkensen oil pool in Lower Saxony, Germany and expects to receive these permits during the fourth quarter of 2013 whereafter it will commence field activities in preparation for drilling. The Company is currently contemplating a four well drilling pad on Volkensen in order to minimize surface impact on the local community, dramatically shorten the licencing approval process on subsequent wells and further improve drilling and completion costs. Additional well locations on Volkensen will be considered depending on drilling results and additional data analysis.

Other Licence Developments

The Company continues to evaluate its other 2.0 million net acres of land holdings in Germany for additional development opportunities which it expects to commence in early 2014. The Company is targeting conventional high permeability oil zones which it believes will be productive and economic without the use of fracture stimulation techniques.