B2Gold Corp. press release
Mystique Increases Production
TSX - Toronto Stock Exchange · Gold · Canada
CALGARY, Oct. 23 /CNW/ - Mystique Energy, Inc. ("Mystique") (MYS:TSX Venture) today announced that its present production rates are estimated to be approximately 350 barrels of oil equivalent per day ("boepd"), an increase of 50% over the second quarter average production rate of 232 boepd. The present production split is 56% gas and 44% light oil and natural gas liquids (NGL's). The new production is a result of Mystique's successful 2006 drilling program and Mystique will be adding additional production during the fourth quarter. Three additional wells have been completed and tested and will be placed on production during the fourth quarter. Two of these wells are expected to be tied-in before mid-November and the third well is expected to be tied-in towards the end of 2006. Production rates will be updated after these wells come on stream. With only one well remaining to be drilled pursuant to its farm-in commitments, Mystique has curtailed further drilling operations for 2006 and is allocating all of its remaining 2006 capital budget towards placing the wells that were drilled during 2006 on production. During the year, Mystique drilled nine gross (8.625 net) wells resulting in three (2.625 net) wells that are now on production, three (3.0 net) wells that have been completed, tested and waiting on tie-ins, two (2.0 net) wells that are waiting on completion/recompletions and one (1.0 net) well that was abandoned, for an overall success rate of 89%. Mystique was able to reduce the number of gross wells drilled from its original plans by maintaining a higher working interest in the wells , increasing its net participation. All of the wells were drilled on farm-in lands in the Harmatten/Lochend/Bottrel/Wildcat Hills area located immediately northwest of Calgary, Alberta. "We are very excited to be reaping the benefits of our successful 2006 drilling program," said Vic Luhowy, President and Chief Executive Officer of Mystique. "We are presently formulating a development drilling program for 2007 that will be based on exploiting the successful exploration wells that were drilled during 2006."
About Mystique Based in Calgary, Mystique is involved in the exploration and exploitation of petroleum reserves in western Canada.
Disclaimers Use of the term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Except for statements of historical fact, all statements in this press release, without limitation, regarding new projects and future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties, and other factors that could influence actual results are described in documents filed with regulatory authorities. %SEDAR: 00001147E