Altima Resources Ltd. has successfully closed on the acquisition and transfer of a key pipeline (the "Pipeline") in the Company's core oil producing area of Red Earth Alberta (the "North Panny Field"). The 9.2 kilometers Pipeline ties the Company's central battery at 3-8-96-5 W5M in the Blue Sky Resources processing facility at 3-11-96-6 W5M.
Altima holds an average Working Interest of 81% in seven (7) wells (the "Wells") in the North Panny Field, three (3) Wells are located in Twp. 95, Rge. 5 W5M, three (3) Wells in Twp.96, Rge. 4W5M and one (1) well is located in Twp. 96, Rge. 5 W5M. These Wells are long life assets with a combined production of approximately 115 bopd. The Company has initiated the process of sequentially placing these Wells back into production, which are connected to the Altima 8-3 central battery and flow through the Pipeline to the 3-11 Blue Sky processing facility and market hub. The new Pipeline will provide the Company sustainable, year-round production capability from the North Panny Field.
Mr. DeVries commented, "We are very encouraged in this first step towards creating multiple long-term, sustainable, economic production."
With the Company greatly reducing its operating costs through the acquisition of the Pipeline, Altima will complete an evaluation for on-stream potential with (5) five additional wells (the "Expansion Wells") also located in North Panny Field to determine the feasibility of working over, tying in and/or the re-completion of the Expansion Wells for additional production. The Expansion Wells are expected to have a combined initial production of approximately 40 bopd. One of the Expansion Wells is slotted as a potential water disposal well to further decrease operation costs.
Bernie Goruk, P.Eng is the Practising Professional Engineer responsible for reviewing and approving the data contained in this press release.
