TerraWest Energy Corp. Provides Project Update & Favorable Results of
Laboratory Tests
TSX-V: PTR
The Company has received the results of analysis of samples taken during drilling in late 2008. As previously reported, well LHG 08-03 intersected approximately 350m of Jurassic Badaowan (J1B) formation including a gas-bearing interval of approximately 170m before reaching total depth of 1500m. Samples were taken from the drill cuttings produced while drilling the well from depths of 1218-1445m and initially placed in special canisters for analysis of desorbed gas content. These tests were conducted in the city of Urumqi by Xinjiang Coal Geological Bureau Laboratory. Samples were then sent to The Lab Unit of the Exploration and Development Research Institute of Xinjiang Oil Company located in Karamay, Xinjiang where they were further analyzed for Total Organic Carbon (TOC) content and mineral composition, which are key characteristics of gas-bearing formations. TOC represents the total amount of material available to convert to hydrocarbons in the rock and exerts a strong influence on the adsorption capacity of the rock.
Results of the lab tests indicate TOC in J1B samples ranging from 0.9 to 11% with five of the samples ranging from 4.30 to 11.03%. The mean TOC level in samples is 4.47%. These are considered very positive analysis results.
TOC is a fundamental attribute of gas-bearing formations and is a measure of present-day organic richness. Values in producing North American basins vary, typically ranging from 1-10%. TOC in the prodigious, gas-producing
Comparable Gas Basin TOC data: ------------------------------------------------------------------------- Natural Gas Total Organic Quartz Producing Basin Age Content (TOC)% (Si)% ------------------------------------------------------------------------- Barnett . Fort Worth Mississippian 1.0-4.5 greater than 50 ------------------------------------------------------------------------- Ohio - Appalachian Devonian 0.5-2.0 40-50 ------------------------------------------------------------------------- Marcellus - Appalachian Devonian 3.0-10.0 greater than 40 ------------------------------------------------------------------------- Lewis . San Juan Cretaceous 0.5-2.5 greater than 40 ------------------------------------------------------------------------- Fayetteville - Arkoma Mississippian 4.0-9.5 greater than 40 ------------------------------------------------------------------------- Antrim - Michigan Devonian 0.5-20.0 40-50 ------------------------------------------------------------------------- Utica - Appalachian Ordovician 1.0-3.1 greater than 40 ------------------------------------------------------------------------- Badaowan - Junggar Jurassic 1.0-11.0 40-50 ------------------------------------------------------------------------- Canaccord Adams Inc., 2008; Canadian Society for Unconventional Gas, 2009; AJM consultants 2009; Energy Resources Conservation Board/Alberta Geological Survey 2009.
Mineral composition is important in assessing the porosity of gas bearing rocks, as well as the brittleness, which affects the propensity for fracturing and stimulation of the reservoir prior to production. The mineral composition analysis of the J1B samples show quartz content of 36.59% to 53.85% with a mean value of 43.26% and a median value of 40.97%. Calcite and dolomite, which contribute to brittleness, have mean values of 3.80% and 2.05% respectively. Clay content which affects porosity and adsorption capacity of the rock, ranges from 9.58% to 17.87% with a mean of 12.18%. The Liuhuanggou J1B analysis results are encouraging in this regard.
The J1B formation represents a unique hydrocarbon opportunity because it is potentially both a hydrocarbon source rock and a reservoir. The Junggar Basin is similar to producing basins in other regions where gas is generated and stored in formations in three ways: as adsorbed gas on the microscopic organic matter; as free gas in the pore space and coal cleats and as free gas along fractures in the surrounding rock.
TWE is continuing with the 2009 exploration program and further drilling and sampling activities have been initiated.
On
Project management of the drilling and sampling is provided by Norwest Corporation of
As previously reported, TWE has also continued a gas flow test started in late 2008 and has also initiated pre-piloting engineering in the form of completion designs for both the J1B and J2X formations.
TWE holds a 47% interest with
About Petromin Resources Ltd.
Petromin Resources is a progressive international petroleum and natural gas exploration and production company listed Tier 1 on the TSX Venture Exchange. Petromin is a major shareholder in TWE and provides professional services under the terms of a management agreement with TWE.
Petromin was ranked 24th of the Top 100 Fastest Growing Companies in BC by Business in
On behalf of the Board of Directors, A. Ross Gorrell
Forward Looking Statements:
Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Petromin Resources. Actual results may vary materially from the information provided in this release. As a result there is no representation by Petromin Resources that the actual results realized in the future will be the same in whole or in part as those presented herein. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ from those contained in the forward-looking statements, are set forth in, but are not limited to, filings that the Company and its independent evaluator have made, including the Company's most recent reports in
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For further information: Mike Suk, VP Corporate Affairs, (604) 682-8831, Website: www.petromin.ca
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