Buffalo Resources says that production operations have resumed at its Pincher Creek gas property following an eleven month shut-in during modifications to optimize Shell Canada's Waterton Gas Plant. During start-up of the Waterton plant, Buffalo is restricted to a maximum production rate of 10.5 MMcf/d of raw gas which is equivalent to approximately 5.8 MMcf/d of sales gas and 172 b/d of condensate, or 1,135 boe/d.

Start-up began on Thursday July 16, 2009 and the field is currently producing at the restricted rate of 10.5 MMcf/d from only three of the six productive wells, including Buffalo's new 11-28-004-29W4 horizontal well.

The 11-28 dual leg horizontal well was drilled and completed in June 2008 and was subsequently stimulated using a staged acid fracture treatment, the first stimulation of this type in the Pincher Creek field. At that time, well testing was limited by the shut-in of the Waterton plant and regulatory restrictions on the flaring of natural gas. During the current start-up, the well produced at initial rates of up to 7.75 MMcf/d of raw gas plus condensate.

Bill Trickett, the Company's President and CEO, stated, "The results of the 11-28 horizontal well support our future exploitation plans at Pincher Creek. Buffalo holds a working interest of almost 100% in 42 sections of land, has recently acquired complete 3D seismic coverage over the property, and wells in the field are generally assigned a 50 year reserve life."

Tags: Buffalo Resources Corp.