VANCOUVER, Oct. 25, 2017 /CNW/ - Eros Resources
Corp. (TSX.V: ERC) ("Eros" or the
"Company") together with its project partner and operator,
Westcore Energy Ltd. ("Westcore" or "WTR")
wish to provide an update concerning the commissioning of the three
oil wells completed and brought on production in the third quarter
at the Flaxcombe heavy oil field
located 30 kilometres west of Kindersley,
Saskatchewan.
The 6-13 well was completed on August
27 and has been on production for over 47 days, showing an
average production rate over the first thirty days (IP-30) of 16.7
barrels per day (15 barrels to Eros). The well was shut-in
for 10 days to be reloaded and primed and has been in continuous
operation for the past two weeks at around the average IP-30
rate.
The 1-13 well, completed on September 4,
2017, has been on production for 24 of the 49 days
since. The well ran for eighteen days until it became
sand-plugged and required reworking to flush the sand out.
That work was delayed by a combination of poor weather and the
availability of equipment to clean the wellbore. Production
results will be made available once the well completes its 30-day
test production period.
The 9-13 well continues to produce at a steady rate in line with
the IP-30 test results announced on September 20, 2017, and has only required service
for three of the 80 days since it was completed.
"Despite some commissioning challenges with wells 1-13 and 6-13
we remain optimistic that the program will meet our production
expectations. By its very nature, CHOPS wells go through a
variable start-up phase but can settle in and remain in production
with low decline rates for extended periods. Our partner and
operator, Westcore, has done an excellent job managing this initial
production phase," stated Ron
Stewart, President and CEO of Eros.
Eros holds a 90% beneficial working interest in the three wells
until it recovers its initial capital investment of approximately
$1.6 million, and will hold a 50%
interest thereafter. Additionally, Eros has the right to
participate in Westcore's next two programs under the same terms.
Eros recently announced that it had entered into a three-way Joint
Operating Agreement with WTR and Saturn Oil +Gas Inc. to
develop three sections of land in the Flaxcombe area. The three parties are
currently preparing a budget and plan to develop this ground.
About Eros
Eros Resources Corp. is a Canadian public company focused on the
exploration and development of resource projects in North America. Eros has as its prime business
objective the identification, acquisition and exploration of
advanced resource projects with a North American focus. A secondary
focus of the Company is to make strategic investments with a global
focus and a diverse commodity base. The Company's expertise in the
resource sector supports the selection of these strategic
investments.
On behalf of the Board of Directors of
Eros Resources Corp.,
Ron Stewart
President & CEO
Cautionary note regarding forward-looking
statements
Certain statements made and information contained
herein may constitute "forward looking information" and "forward
looking statements" within the meaning of applicable Canadian and
United States securities
legislation, including, among other things, this press release
includes references to mineral resources and future potential
forecast economics of extracting those resources. There is no
certainty that any portion of the resources will be confirmed with
greater certainty. If confirmed, there is no certainty that it will
be commercially viable to extract any portion of the resource.
There is no certainty that access to the resource area will be
re-established, and if access to the resource area is blocked for
an extended period of time, or permanently, there is no certainty
that any compensation will be received by the Company.
Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those expressed or implied by such
forward-looking information, including the re-establishment of
physical access to the property, the availability of adequate and
secure sources of funding to construct the extraction facilities
required to extract the mineral resources, prevailing commodity
prices, the receipt of regulatory approvals, environmental risks
and the performance of personnel. While the Company considers its
assumptions to be reasonable as of the date hereof, forward-looking
statements and information are not guarantees of future performance
and readers should not place undue importance on such statements as
actual events and results may differ materially from those
described herein. The Company does not undertake to update any
forward-looking statements or information except as may be required
by applicable securities laws.
Oil and Gas Advisory
Production rates disclosed herein
are preliminary and are not determinative of the rates at which the
wells will continue to produce and decline thereafter and may not
necessarily be indicative of the long-term performance or estimated
ultimate recovery.
Neither TSX Venture Exchange nor the Investment
Industry Regulatory Organization of Canada accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Eros Resources Corp.