Mooncor Oil & Gas Corp. ("Mooncor") is pleased to announce the results of its year-long efforts to map a large, shale gas opportunity in northern Alberta.
Mooncor has received National Instrument 51-101 compliant reports from its Independent Qualified Reserves Evaluator, DeGolyer and MacNaughton Canada Limited. The first report provides an estimate of Contingent Resources and the second report provides an estimate of Prospective Resources for Mooncor's Hamburg area Devonian shale gas play. These reports can be accessed electronically from the SEDAR system at www.sedar.com.
Mooncor is now able to confirm the southeastward extension of the massive Horn River Muskwa shale gas discovery from northern British Columbia through to northwestern Alberta, including Mooncor's recently acquired Hamburg property. This confirmation is based on detailed geological mapping, gas detection review, petrographic analysis and, most importantly, the actual occurrence of gas and pressure in Mooncor's Hamburg Muskwa shale system.
Mooncor initiated a land banking program last fall that led to the accumulation of the previously announced 89 sections of land (56,960 net acres) in Alberta. The location of Mooncor's lands in the Hamburg area may be viewed on the company's website (www.mooncor.com).
Horn River vs. Mooncor's Hamburg Lands
The Hamburg area has been previously drilled for deeper targets and as such Mooncor's development program will involve virtually no exploration risk, as the Muskwa shale is now known to occur throughout Mooncor's entire land position. The Muskwa shales at Hamburg occur in the range of 12 - 25 metres in thickness, about half the thickness of the Muskwa Shales at Horn River. However, pressure analysis at Hamburg shows the Muskwa shales to have greater than 1 microdarcy of permeability, representing large multiples to the 150 to 450 nanodarcies reportedly occurring in the Horn River shales. The petrographic comparison between 4 wells in the Muskwa shales in each area shows Mooncor's Hamburg area shales to be comparable to the excellent gas-producing Muskwa shales in the Horn River area. Hamburg and Horn River Muskwa shales should, therefore, have similar rock properties of temperature, pressure, and gas saturation, although Hamburg shales may have better porosity, due to their reportedly 3-5 times higher siltstone content. Based on a geological perspective, the Horn River and Hamburg Muskwa shales occur within the same formation, consist of similar rocks, and are located at similar depths, with the same depositional history within the same basin and, therefore, should be considered part of the same shale gas system. These similarities between Hamburg and Horn River Muskwa shales led to the expectation that both areas should have similar gas contents for the Muskwa Formation.
Hamburg Test Results (6-34-94-12W6)
Mooncor management was extremely encouraged to have gas flow and pressure response from the Muskwa shales at Hamburg after perforation and prior to fracture stimulation during Mooncor's recent recompletion operations this past winter. Gas flow and pressure response increased significantly on fracture stimulation. A comparatively small energized frac program was undertaken on the pilot well and flowed at rates exceeding 1.0 million cubic feet per day. Further assessment on the 500-foot thick Fort Simpson shale formation at Hamburg is ongoing. DeGolyer and MacNaughton Canada Limited has provided a National Instrument 51-101 compliant estimate of Contingent plus Prospective Resources for Mooncor at Hamburg of up to 5.19 TCF Total Original Gas-in-Place. The total Contingent plus Prospective Recoverable Gas-in-Place is estimated to be up to 1.35 TCF.
Mooncor's future development program for Hamburg is presently under review. It is expected to focus heavily on horizontal drainage and delivery to the vastly under-utilized infrastructure available in the area. As an historically well developed area, Hamburg has both winter and summer accessibility, as well as proximity to all needed supplies and services. Development capital requirements are, therefore, expected to be significantly lower than the Horn River Basin and will provide attractive payout and investment returns, assuming current low price forecasts for natural gas.
Business of Mooncor Oil & Gas Corp.
Mooncor Oil & Gas Corp. is a junior oil and gas exploration and development company with unconventional shale gas, light oil and heavy oil projects in Saskatchewan, Alberta and southwestern Ontario. Mooncor is focusing on its shale gas opportunities with a current emphasis on the high impact proven shale gas play at Hamburg, Hamburg is Mooncor's newly discovered southeast extension of the Horn River Basin Muskwa shale system into northwest Alberta.
The contingent resources estimated herein are those volumes of petroleum that are potentially recoverable from the known accumulation but which are not currently considered to be commercially recoverable. Because of the uncertainty of commerciality, the contingent resources estimated herein cannot be classified as reserves. The contingent resources estimates in this report are provided as a means of comparison to other contingent resources and do not provide a means of direct comparison to reserves. The contingent resources estimated in the DeGolyer and MacNaughton Canada Limited report have an economic status of "Undetermined."
The prospective resources estimated herein are those quantities of petroleum that are potentially recoverable from prospects yet to be discovered. Because of the uncertainty of commerciality and the lack of sufficient exploration drilling, the prospective resources estimated herein cannot be classified as contingent resources or reserves. The prospective resources estimates in this report are not provided as a means of comparison to contingent resources or reserves. There is no certainty that any portion of the prospective resources estimated herein will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated.
There is no certainty that it will be commercially viable to produce any portion of the resources.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Mooncor believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Mooncor disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
<< 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: Mooncor Oil and Gas Corp.