January 31, 2018
Vancouver, British Columbia – Pinedale Energy Limited (“Pinedale” or the “Company”) (TSXV: MCF), is pleased to provide an update on current development and exploration activities occurring at the Company’s non-operated working interest properties situated in the Pinedale gas field area, southwest Wyoming.
2018 development activities involving three Pinedale interest directionally drilled infill vertical well locations have taken place or are in progress. An infill well (0.2125 net), that was drilled and cased in late 2017, was completed by the operator and turned in line to sales on January 22, a second well (0.2125 net) has been drilled, logged, cased and is waiting on completions, and a third well (0.2125 net) is currently drilling ahead.
Pinedale has approved 10 additional AFE’s electing to participate in the development of 10 new vertical infill wells in which the Company has a 21.25% working interest. The estimated gross cost of each AFE is US$2.81 million per well, or approximately US$597 thousand net to Pinedale’s interest.
Pinedale owns a 7.94% working interest in the prolific Warbonnet 9-23-A-1H horizontal well that was developed within a 1,595-acre horizontal drill spacing unit (“Horizontal DSU”). Warbonnet 9-23-A-1H has produced over 3 Bcfe in under three months since first sales on November 1, 2017. Applications to drill 5 additional new horizontal wells within the Horizontal DSU have been filed with the State by the operator and are waiting on approval.
In 2017 Pinedale participated with its operating partner in the successful development of 5 producing directionally drilled vertical infill wells (1.0625 net) and the Warbonnet 9-23-A-1H exploratory horizontal well (0.0794 net). Pinedale’s inventory of producing wells at year-end 2017 totaled 17 wells (3.404 net).
About Pinedale Energy Limited
Pinedale Energy Limited is an independent oil and gas exploration and production company focused exclusively on its natural gas properties situated in the prolific Pinedale field area, within the Green River Basin of southwestern Wyoming. Pinedale, through its subsidiaries, owns non-operated interests in 17 oil and gas leases with an undivided working interest ranging from 11.56% to 21.25% in approximately 11,995 acres. At year-end 2016, the Company had gross proved reserves of approximately 95.5 billion cubic feet of gas and 842 thousand barrels of oil (101.5 billion cubic feet equivalent); 93% undeveloped. (1)
The Class A common shares of Pinedale Energy Limited are listed for trading on the TSX Venture Exchange under the symbol “MCF.” Additional information on Pinedale Energy Limited is available on the SEDAR website at www.sedar.com or on the Company’s website at www.PinedaleEnergy.com
For further information, please contact:
Chief Operating Officer
Pinedale Energy Limited
Suite 650 - 669 Howe Street,
Vancouver, BC, Canada, V6C 0B4
(1) Report of Netherland Sewell & Associates with an effective date of December 31, 2016 prepared in accordance with the definitions and guidelines set forth in the Canadian Oil and Gas Evaluation Handbook and in accordance with NI 51-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as ”subject to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements regarding the five horizontal wells are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pinedale to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, The Company has not received AFE’s for the five horizontal wells. There is no guarantee that the permits will be approved by the State, that the Company will receive AFE’s or that the Company will elect to participate in the five horizontal wells if it received AFEs for these wells. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Pinedale will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.