DENVER, Oct. 15, 2012 -- Grid Petroleum Corp. (OTCBB: GRPR): The Board of Directors is pleased to announce that Grid Petroleum has received a preliminary report of the initial flow testing of the Barnsdall Formation.
Initial natural gas production rates from the lower and upper lobes of the Bardo zone is estimated at approximately 1 million cubic feet per day. The zone could be produced at approximately 500,000 cubic feet per day with an estimated fall off to 250,000 cubic feet per day with the natural decline rate over time.
From Progas Services Inc, the Joint Venture Operator for the Northwest Premont Area of Interest.
"Garcia 3 – Last evening the tubing was swabbed down to 1100 feet and shut in for the night. The fluid level was to surface when the rig starting swabbing this morning. Swabbing operations started producing "live oil" with natural gas coming into the well bore along and some formation water. This provides an indication the formation has virgin pressure in the well. This morning the oil cut has increased to estimated 12% oil in each barrel of fluid brought to surface. Each additional swab run is producing more natural gas and more "live oil". Entry rate has increased from approximately 1 barrel per hour to 3.5 barrels of fluid per hour with steadily increasing oil percentage. The Garcia #3 is turning around at this time producing good oil and natural gas with each swab run.
Current production of 3.5 barrels per hour equals 84 barrels a day. 12% is 10 barrels of oil per day and increasing," States Dan Polk of Progas Services Inc.
"Live Oil" - Oil containing dissolved gas in solution that may be released from solution at surface conditions. Live oil must be handled and pumped under closely controlled conditions to avoid the risk of explosion or fire, creating a slower than expected completion period for the Garcia #3 well.
The Company expects that flow results will be finalized in the near future. The swabbing process is near completion and the Company is awaiting confirmation of final formation flow numbers from the Joint Venture Operator, Progas Services Inc.
The completion process can take several weeks before reliable production numbers can be disseminated.
The company will provide progress updates as they become available regarding the Garcia #3 and other anticipated drilling activity in the near future.
Grid Petroleum Corp. is a development stage company focused on the acquisition and development of low cost high reward oil and gas prospects with infield drilling for proven potential reserves in the United States and Canada.
Legal Notice Regarding Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in the Company's periodic filings filed from time to time with US Securities and Exchange Commission at www.sec.gov.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "Securities Act"). They may not be offered or sold in the United States (as defined in Regulation S under the Securities Act), except pursuant to an exemption from the registration requirements of the Securities Act.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms such as estimates of a mean of undiscovered natural gas and estimates of a mean of undiscovered oil that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K and other periodic reports filed by us from time to time with the SEC, available from us at www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
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SOURCE Grid Petroleum Corp.