Wednesday July 30, 9:00 am ET
WILLISTON, N.D.--(BUSINESS WIRE)--Western Standard Energy Corp., (OTC BB: WSEG.OB), an oil and gas exploration company, is pleased to announce that it has secured and scheduled a rig to perform completion operations on the Federal 1-19 well within the Starbuck East shallow gas prospect in Valley County, Montana. Western Standard has a 100% working interest in the well, with its operating partner Coastal Petroleum Co., who has a 20% back-in working interest after payout.
The rig, contracted from Titan Oil & Gas Services Inc., is scheduled to move on site August 2nd 2008, with completion operations expected to take 2-3 days. Subject to a successful completion operation, the Federal 1-19 test well will be flow tested for productivity and commerciality.
Western Standard funded and drilled the Federal 1-19 test well in October 2007 to approximately 1,100 feet. The well was cased after drilling logs indicated two gas zones at both 500 (Judith River Sand) and at 1,100 feet (Eagle Sand). Completion work was suspended until after July 15, 2008 due to access restrictions imposed by the US Bureau of Land Management.
According to an engineering report, written by consulting geologist Mr. Richard Robinson for Great Northern Gas Co. on February 2, 2005, and later confirmed in September, 2007, the Starbuck East shallow gas prospect is estimated to be a 34,000-acre closure, and could allow for around 600 wells to be drilled with 80-acre spacing. The same report, available for download from the company web site at western-standard.com has estimated potential recoverable resources to be approximately 220 BCF of gas from two zones.
The Starbuck East shallow gas assembly is located approximately 8 miles directly to the north of the Northern Border Pipeline, which runs from Alberta, Canada to serve the Chicago market.
About Western Standard Energy Corp.
Western Standard Energy Corp. is an independent oil and gas exploration company, traded on the OTC BB under the ticker symbol WSEG. Western Standard has secured a portfolio of oil and gas properties throughout Montana and North Dakota. The Company has a 50% stake in Starbuck East prospect, a 42,000-acre shallow gas assembly in Valley County, Montana. The Company also has as a 100% working interest in 8 Lodgepole Reef prospects in Stark and Slope counties, in North Dakota. Shareholders are invited to contact corporate communications toll free at (888) 956-7843 for further information.
Western Standard Energy Corp.
Dan Bauer, President
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include that Western Standard Energy Corp, ('Company') has scheduled completion and development work on the Starbuck East shallow gas prospect; that we will gain access to the site of the Federal 1-19 test well; that the Federal 1-19 test well will be completed successfully; that the Federal 1-19 test well will be tested for commerciality and productivity within the specified time frame, if ever; that the closure for Starbuck East is 34,000 acres; that there is 80 acre spacing; that 600 wells can and will be drilled; that there are estimated potential recoverable resources of approximately 220 BCF; that the Federal test well 1-19 and/or the Starbuck East prospect will produce gas, if ever; that the Company will ever receive revenues from the Federal test well 1-19 and/or the Starbuck East prospect; that a pipeline route to the tap in point from Starbuck East to the tap in point at the Northern Border Pipeline will be approximately 8 miles; that the Company will be able to secure the necessary regulatory approvals and rights of way from the Bureau of Land Management or other local, state, and federal authorities; that the Company will ever construct a pipeline; that the tap in process will take one year; that the Company will be able to secure the necessary commercial delivery agreements with TransCanada Pipeline, operator of the Northern Border Pipeline; or that it will ever tap in to the Northern Border Pipeline. 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 the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, inability to reach agreement with key suppliers or others on whom we are or will be dependent, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants, competition for equipment, inability to obtain drilling permits or rights of way, potential delays or obstacles in drilling operations and interpreting data, and the likelihood that no commercial quantities of gas are found or recoverable. Readers should also refer to the risk disclosures outlined in the Company's quarterly reports on Form 10-QSB, annual reports on Form 10-KSB and the Company's other disclosure documents filed from time-to-time with the Securities and Exchange Commission available at www.sec.gov..
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission ("SEC") 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?in this document that SEC's guidelines may prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our annual report on Form 10-KSB and quarterly reports on Form 10-QSB available from us or the SEC.
For Further Information, Contact:
RedChip Companies, Inc.
500 Winderley Place, Suite 100, Maitland, FL 32751,
(800) 733-2447,Fax: (407) 644-0758,
info@redchip.com
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