LGX Oil + Gas Inc. is pleased to provide completion test results from recent southern Alberta activity. Big Valley (Three Forks) Formation production from the horizontal well at 6-36-8-24 W4M was isolated and the Banff Formation was completed with a 6 m perforated interval in the build section of the intermediate casing and stimulated with a small volume acid job. The completion has achieved the following extended production test results:
The Banff Formation has been flowing back for 159 hours and has produced in excess of 2,700 Bbl of light oil for an average daily rate of approximately 420 Bbl oil per day over the test period. Peak oil rates in excess of 800 Bbl per day have been measured during the flow back period. The 6-36 well is still flowing 130 Bbl of oil per day at a flowing pressure of 1,000 kPa with a two percent water cut from the un-frac'd Banff Formation. LGX has a 100 percent interest in the well prior to recovery of 200 percent of the drilling, completion, equipping and tie-in costs, at which point its interest will revert to 80 percent.