POWDER MOUNTAIN ENERGY LTD Calgary, Alberta, March 26, 2015 - Powder Mountain Energy Ltd. ("Powder Mountain" or the "Corporation") (TSX-V: PDM) is pleased to provide the following operations update to its' drilling program in the Hardy and Coteau Lake areas of southeast Saskatchewan.
Operations UpdateDuring November, 2014 through January, 2015 the Corporation drilled, completed and placed on production test two 100% working interest horizontal Bakken wells in southeast Saskatchewan.
Hardy Area
The 5A4-16-4-21W2M ("5A4-16") development well located on the Corporation's Hardy property was drilled, completed (28 stage frac) and placed on production in late January, 2015.
Production from February 8th to March 10th averaged 112 Bopd. The well continued to cleanup and was producing approximately 132 Bopd before being shut-in due to spring break-up.
The 4C8-30-1-20W2M ("4C8-30") was the Corporation's first Bakken horizontal well drilled in Coteau Lake. The well was drilled using 2D seismic data and offsetting an existing vertical well that cored the Bakken zone. The 4C8-30 location included a vertical stratigraphic well drilled to assist in delineating the Bakken and to gather further information on the Torquay formation before drilling the horizontal Bakken section. Powder Mountain completed the well (29 stage frac) and placed it on production test. After 50 days on production the well has been determined to be uneconomic due to high water cut.
Powder Mountain is currently conducting a review of the Coteau Lake drilling results along with geological and seismic interpretation to determine the prospectivity of the Bakken and other multi- zone potential in the area.
The Corporation is well capitalized with approximately $23 million in working capital, no debt and is well positioned to take advantage of opportunities in this current oil price environment.
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About Powder MountainPowder Mountain is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas in the Western Canadian Sedimentary Basin.
Not for distribution to U.S. news wire services or dissemination in the United States.Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words ''may", "expected", "believes" and other words of a similar nature are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Powder Mountain believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements provided under the heading "Outlook". Actual results could differ materially from those anticipated in these forward- looking statements as a result of prevailing economic conditions and other factors, many of which are beyond the control of Powder Mountain. The forward-looking statements contained in this news release represent the Corporation's expectations as of the date hereof, and are subject to change after such date. Powder Mountain disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
For further information contact:
Bruce Murray John Newman
President & CEO Chief Financial Officer
Tel: 403-930-4061 Tel: 403-930-4063
Email: bmurray@powdermtnenergy.comEmail: jnewman@powdermtnenergy.com
Website: www.powdermtnenergy.com
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