Nexera Energy Inc. press release
Emerald Bay Energy Provides Management Year to Date Update of Texas Operations
TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
CALGARY, AB and SAN ANTONIO, TX / ACCESSWIRE / December 4, 2018 / Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) (the "Company" or "Emerald Bay") is pleased to provide an operational update on activity in Texas.
The Company's focus remains its oil based exploration program in South Texas.
Highlights of the first and second quarters of 2018
At the Wooden Horse Kuhn Wells:
The Company successfully re-entered and completed the Kuhn 3 well in the upper Austin Chalk formation and initial test rates for the well were 80 barrels of oil per day including the associated gas.
The Company leased the mineral rights to 91.72 acres adjacent to the Kuhn lease.
The Company also acquired a mineral lease to 134 acres adjacent to the Kuhn lease.
The Company successfully drilled the Kuhn A5 well as an Austin Chalk target. The Company completed the well in the Austin Chalk formation and during swabbing the well tested at 142 bbl/day of oil.
At the Marpat Partnerships:
The Company completed operations to equip and tie in the final three wells of the MarPat partnerships.
As noted in the press release of Jan. 19, 2018, the wells were perforated and completed in the Anacocho, Olmos, or Escondido formations. Oil production from the sixteen MarPat wells is approximately 40 barrels per day, approximately 10 bbls per day net to Emerald Bay at no cost to the company. The MarPat partnerships are farmouts whereby the farmees/partners pay 100 per cent of the drilling and equipping costs for a 75-per-cent working interest in the wells. As the operator and farmor, Emerald Bay earned a 25-per-cent carried working interest in the wells.
Financings and Debt reduction:
The Company completed a $500,000 private placement at $0.025/share. Total shares issued were 20,000,000.
The Company sold its entire interest in the Horseshoe Power Limited Partnership at investment cost of $407,676. Proceeds were used to reduce the Company's outstanding debt.
The Company arranged to settle $924,658.90 of debt to a lender of the Company through the issuance of shares at $0.05/share. Total shares issued were 18,493,178.
Highlights of Q3 and events subsequent to the quarter end
At the Wooden Horse Kuhn Wells:
_The Kuhn A5 well_began production in early August and produced 532 barrels of oil over the first four days of production. The well is powered by a propane engine as there is no electricity to this location at this time. We have experienced multiple mechanical problems with the propane engine which has limited our ability to pump Kuhn A5 on a consistent basis. The Company is moving ahead with electrical upgrades at Wooden Horse as outlined below.
_The Kuhn 4 well_was re-entered in the Austin Chalk formation and stimulated with acid. The well initially flowed unassisted producing over 300 bbls of fluid in the first 48 hours after the acid stimulation. With estimated flow rates of over 1,200 bbls per day of total fluid the Company replaced the pumpjack with a Moyno progressive cavity pump capable of producing up to 2000 bbls/day total volume. At the time of this writing the well has been on production for 40 hours and the current flow rate is approximately 1400 bbls/day of total fluid with an oil cut of 2% representing approximately 28 bbls/day of oil. It is anticipated that we will increase flow rates to 2000 bbls/day in the coming week at which point it is likely that the oil cut will increase marginally as well.
_The Kuhn 3 well_was successfully acid stimulated in the Austin Chalk formation in August and flowed unassisted at rates over 500 bbls/day of total fluid initially. The Company is now moving forward with installing the same Moyno pumping system that has recently been installed on Kuhn 4 and it is anticipated that flow rates will be similar to Kuhn 4. As the oil cut was higher in Kuhn 3 vs Kuhn 4 prior to the acid stimulations it is anticipated that we will see the higher oil cut in Kuhn 3 when the well is put on production in the coming weeks.
Two factors have impeded the Company in bringing the Kuhn wells on production sooner.
The HugoCellR Ltd. Partnership:
In August, the Company entered into a partnership agreement for new well drilling program in South Texas with HugoCellR Ltd. The key term of the partnership is that HugoCellR pays 100% of the costs to drill the wells to earn a 75% interest and, as the operating partner, Emerald Bay earn a 25% interest in the wells at no cost to the Company.
Partnerships like the HugoCellR Ltd. partnership represent a unique opportunity for the Company to grow at no risk or cost to the stakeholders. Over the past several months, this partnership has been the primary focus of the Company as highlighted below:
Floyd 1 and Floyd 2 wells
The Bauer Lease Wildcat well
Isabella 2
The Company will continue to pursue a carefully designed capital expenditure program at the Company's Wooden Horse and Nash Creek properties, as well as opportunities similar to the HugoCellR and MarPat partnerships. Additionally, the Company will pursue acquisitions and dispositions which would allow us to add production, reserves, and cash flow in a cost effective manner while maintaining a level of flexibility in our balance sheet. Our proven management and dedicated team of professionals are engaged and committed to developing our high-quality asset base.
Commented Shelby D. Beattie, President and CEO, "We are very excited about all of our developing plays in South Texas and are looking forward to a very busy drilling schedule on our various projects in the weeks to come. The entire exploration and development team at EBY are very motivated and enthusiastic about 2019".
About Emerald Bay
Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) is an energy company with oil producing properties in southwest Texas as well as non-operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where the Company currently now owns a 50.00% working interest in Resources Inc., a South Texas oil company. those projects. The Company also owns 75% of Production
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For further information, please contact:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 Email: info@ebyinc.com www.ebyinc.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Emerald Bay Energy Inc.