Entek advised that the Butter Lake 32-10 well (32-10 well) spudded on the July 30, 2010. The 32-10 well is the first new well targeting the Niobrara and Frontier Formations for the 2010 drilling season.

BUTTER LAKE FEDERAL 32-10 PROSPECT The well is targeting the Niobrara Formation and Frontier Formation within the Focus Ranch Unit. The well location is shown in the figure adjacent. The proposed Total Depth (TD) is 8,700' within the Frontier Formation, which has tested gas and liquid hydrocarbons from the Focus Ranch 12-1 well.

The well targets a closed structure bounded by a fault to the north with structural reversal at shallow levels including the Deep Creek Sand. The Mancos Shale also exhibits structural closure that would create potential hydrocarbon traps in the Shannon Sand and Marapos Sand (that are units within the Mancos Shale). Deeper reservoirs that will also be tested within structural closure include the Frontier Formation which is one of the two primary targets.

Within the Niobrara Formation primary target there are three brittle benches (units) that act as continuous hydrocarbon reservoirs when fractured. Fracturing of these benches is expected to occur associated with faults, igneous sill intrusions and the structural deformation at this location.

The average production rates for Niobrara wells throughout the Sand Wash Basin where Entek's acreage is located are 101 BOPD and 165 MCFD. Estimated Ultimate Recovery (EUR) for those averages are 260,000 BO and 1.1 BCF per well. Initial production rates have been as high as 500 BOPD from vertical wells adjacent to Entek's acreage. The Focus Ranch 12-1 southeast of this location had combined initial rates of 2.75 MMCFD and 240 BOPD. Independent reserves estimate associated with the 12-1 well range from 2.6 MMBO to 3.2 MMBO of condensate and oil and 7.6 BCF to 20 BCF of gas.

If the Butter Lake 32-10 well is successful then a similar reserves addition may occur. In the event of a success the well will be tied into the existing production facilities at Slater Dome via a gathering line.

Tags: Entek Energy Limited