Attached files
file | filename |
---|---|
8-K - FORM 8-K - Lexaria Bioscience Corp. | form8k.htm |
December 15, 2010 | Trading Symbol: LXRP: OTCBB |
LXX: CNSX |
Two Successful Oil Wells and Record-High Oil
Production
(Kelowna, BC: December 15, 2010) - Lexaria Corp. (the "Company or Lexaria") is very pleased to announce successful oil production from two new wells drilled this season at Belmont Lake Oil Field, Mississippi.
The 12-4 oil well began producing oil on October 21 and produced an average of 200.4 barrels per day for the first ten days of production, significantly more than expected. This is the highest oil production rate ever recorded for a Belmont Lake Oil Field well and meaningfully increases the production potential of the remaining wells to be drilled in the field. (Lexaria currently holds a 40% gross working interest in the 12-4 well.)
The well is currently being produced at a rate of approximately 50% of its initial capacity. The 12-4 well is in production while permanent production lines are being installed.
The 12-5 well experienced down-hole complications that initially delayed production. Those complications were overcome and on December 3 the 12-5 well produced approximately 50 barrels of oil. This well is currently awaiting its artificial lift system and production lines to be connected. Because the 12-5 well encountered what is believed to delineate the most North-Western corner of the field it is not expected to produce at the higher rates of the more centrally located 12-4 well.(Lexaria currently holds a 40% gross working interest in the 12-5 well.)
Lexaria further announces that oil production has recently set both daily and monthly record-high levels. As was reported on August 24, 2010, Belmont Lake oil field production for the 18 months ending June 30, 2010, had averaged 2,303 barrels per month. Recent monthly field production is shown here in barrels of oil per month:
Jul | 2,423 |
Aug | 1,722 |
Sep | Nil |
Oct | 4,515 |
Nov | 3,848 |
Both October and November production was from the 12-1; 12-3; and 12-4 oil wells only, and on a non-constant basis. New well drilling operations in August and September interrupted production on a temporary basis. The 12-5 well is expected to begin regularly contributing to overall production this month.
Lexaria expects monthly oil production to increase for two reasons:
i. | First - all four of the existing wells should be simultaneously producing for the first time; and |
ii. | Second - a significant field infrastructure upgrade is underway. |
Permanent dedicated production lines and gas injection lines are being installed as part of a comprehensive infrastructure upgrade that began construction in November and is nearing completion.
NOTE: All production quantity data shown here are approximate and supplied by field operators. Precise amounts produced have varied slightly from the quantities shown here, and monthly sales amounts will vary due to schedules of oil pickups and sales.
Four additional well locations to be drilled at Belmont Lake have been identified as a result of the knowledge gained through recent drilling. Lexaria is examining different methods to build maximum value from these potential wells and notes that, like the 12-4 well, some appear to be located in the more central areas of the field.
Lexaria reminds our stakeholders that we have recently extended our strategic well option agreement over an area of 130,000 acres in the Belmont Lake area. Lexaria holds a strategic 60% interest in the next 38 exploration wells and all potential oil and gas fields discovered by those wells, giving the Company significant opportunities to focus on the same geological horizons as the very successful Belmont Lake.
Lexaria currently holds a 40% gross working interest in the 12-4 and 12-5 directional wells and a 32% interest in the 12-1 and 12-3 wells.
About Lexaria:
To learn more about Lexaria Corp. visit www.lexariaenergy.com.
ON BEHALF OF THE BOARD
"Chris Bunka"
Mr. Chris Bunka,
President
FOR FURTHER INFORMATION PLEASE CONTACT:
Lexaria
Corp.
Chris Bunka CEO/Chairman
(250) 765 6424
FORWARD-LOOKING STATEMENTS
This release
includes forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Statements which are not historical facts are
forward-looking statements. The Company makes forward-looking public statements
concerning its expected future financial position, results of operations, future
production, cash flows, financing plans, business strategy, products and
services, competitive positions, growth opportunities, plans and objectives of
management for future operations, including statements that include words such
as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may,"
"could," "should," "will," and other similar expressions are forward-looking
statements. Such forward-looking statements include: (i) the Companys belief
that the12-5 well is expected to begin regularly contributing to overall
production this month; and (ii) the Companys expectation that monthly oil
production should increase for the following two reasons: (a) all four of the
existing wells should be simultaneously producing for the first time, and (b) a
significant field infrastructure upgrade is underway. Such forward-looking
statements are estimates reflecting the Company's best judgment based upon
current information and involve a number of risks and uncertainties, and there
can be no assurance that other factors will not affect the accuracy of such
forward-looking statements. It is impossible to identify all such factors but
they include and are not limited to the existence of underground deposits of
commercial quantities of oil and gas; cessation or delays in exploration because
of mechanical, weather, operating, financial or other problems; capital
expenditures that are higher than anticipated; or exploration opportunities
being fewer than currently anticipated. There can be no assurance that road or
site conditions will be favourable for field work; no assurance that well
treatments will have any effect on oil or gas production; no assurance that oil
field interconnections will have any measurable impact on oil or gas production
or on field operations, and no assurance that the expected new well(s) will be
drilled or have any impact on the Company. There can be no assurance that
expected oil and gas production will actually materialize; and thus no assurance
that expected revenue will actually occur. There is no assurance the Company
will have sufficient funds to drill additional wells, or to complete
acquisitions or other business transactions. There is no assurance that any
future exploration will take place and no assurance that there are any likely
locations for Belmont Lake look-alike fields. Such forward looking statements
also include estimated cash flows, revenue and current and/or future rates of
production of oil and natural gas, which can and will fluctuate for a variety of
reasons; oil and gas reserve quantities produced by third parties; and
intentions to participate in future exploration drilling. Adverse weather
conditions can delay operations, impact production, and cause reductions in
revenue. The Company may not have sufficient expertise to thoroughly exploit its
oil and gas properties. The Company may not have sufficient funding to
thoroughly explore, drill or develop its properties. Access to capital, or lack
thereof, is a major risk. Current oil and gas production rates may not be
sustainable and targeted production rates may not occur. Factors which could
cause actual results to differ materially from those estimated by the Company
include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and
filings.
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.