CALGARY, Alberta, May 14, 2004 (PRIMEZONE) -- Assure Energy, Inc. (Assure) (OTCBB:ASURF) (Frankfurt WKN 357954 Symbol ASL) is pleased to announce that Assure, through its subsidiaries, Assure Oil & Gas Corp. (Assure O & G) and Westerra 2000 Inc. (Westerra) and 48.5 % controlled Quarry Oil & Gas Ltd. (Quarry) (TSX-v: QUC) has completed its Fall-Winter 2003/04 Multi Well Drilling Program in Canada's Western Sedimentary Basin resulting in Assure raising its production of oil or its natural gas equivalents per day (boe/d) (at 6:1 ratio) to approximately 1415 boe/d on a consolidated basis. This amounts to over a 300% increase in daily production from the end of last years winter drilling season to the end of the 2004 winter drilling season for Assure on a consolidated basis.
Assure drilled 5 new gas wells in Northeastern British Columbia (NEBC) and 1 deep test well in the Doe area of Northwestern Alberta. The 5 wells in NEBC encountered 11 potential pay zones and are being completed as gas wells while the Doe test well will be abandoned.
Harvey Lalach, President stated, "This is really a credit to our management team and its ability to execute our corporate plan to grow through acquisitions and through the drill bit. I am very pleased that although we only brought the Team together in October 2003 they were still able to identify these opportunities, effect a successful drilling program and tie in over 400 boe's a day of natural gas production for Assure in 5 short months. Obviously the acquisition of Quarry was a big part of our bump in production. While the Assure drilling program was being implemented, the Team had to manage and administer the development of Quarry as well which unfortunately included shutting in some prior production to improve overall economics. The key to our success is our team of professionals and their ability to maximize our exploration and development dollars by sourcing multi-zone opportunities within our core areas. Based on the findings of 11 potential pay zones in the first 5 wells drilled in NEBC, Assure has dramatically increased production and discovered reserves now behind pipe to give us a head start on next years winter drilling program. We have acquired more land in the area and look forward to repeating this success and more. We are appreciative of all of shareholders belief and faith in our abilities and to those who in December, helped finance a very successful exploration program. "
Presently, Assure has completed and tied-in 2 of the 5 wells in NEBC with 1 well producing approximately 2.55 million cubic feet (mmcf/d) of gas per day (420 boe/d) from 2 of 3 producible zones while the second well, which tested at over .5 mmcf/d from 1 of 2 completed zones, requires some further downhole work prior to putting on production. Tim Chorney, Assure's Operations Manager stated, "the open-hole logs on the 3 remaining wells clearly indicate gas pay in a total of 6 zones and now require completion and tie-in to pipelines to produce. These wells have similar qualities to the well that Assure now has on production and we are confident that we have significant production potential and reserves behind pipe. Spring break-up in the area interrupted plans to fully complete and tie-in these wells which are in a muskeg prone area and once spring thaw started and road bans were implemented, we were restricted from moving our heavy equipment in and out. We are currently considering economical ways to complete and tie-in the remaining wells this summer by utilizing various surface access alternatives; otherwise we will wait until freeze up later in the year to resume operations."
Highlights of Assure and Quarry Winter Drilling Program Combined
* 12 wells drilled by Assure and Quarry resulting in 5 gas wells, 5 oil wells, and 2 abandoned gas wells for an 83% drilling success rate;
* 2 previously drilled wells (1gas well and 1 oil well) tied into production by Quarry;
* 5 NEBC gas wells, drilled by Assure with multi-zone production potential with a combined total of 11 zones prospective from the Bluesky, Gething and Baldonnel formations;
* Assure has 2 of the 5 NEBC gas wells tied in with only 1well currently producing 2.55 million cubic feet of gas/day from 2 zones;
* Assure has a second well, which tested at over .5 mmcf/d from 1 of 2 completed zones, and requires some further downhole work prior to putting on production;
* The remaining 3 NEBC gas wells drilled by Assure indicate gas pay on wire line logs and are designated for completion and tie-in for further production potential behind pipe, and
* 5 oil wells drilled and a previously drilled well all now completed and tied-in by Quarry in the Ribstone area of Alberta currently producing approximately 110 bbls/day
Summary of Assure and Quarry Winter Drilling Program Combined
* Assure's current production exits the winter 2004 season at approximately 640 boe/d (85% gas : 15% oil);
* Quarry current production exits the winter 2004 season approximately 775 boe/d (15% gas : 85% oil), and
* Assure and Quarry consolidated currently produce approximately 1415 boe/d (47% gas : 53% oil).
Going Forward
Assure has a 4 well program planned for the second quarter ending June 30, 2004. Assure is participating for a 25% interest in a deep test gas well in the Edson area of Alberta which will earn 3 sections of land (1920 gross acres - 480 net acres) and an area of mutual interest with its farm in partner. Assure has also identified 3 drilling locations for potential oil wells in the Lloydminster area. Further upon abandoning the Doe well, mentioned earlier, Assure will earn a 25% working interest in nine sections (5760 gross acres - 1440 net acres) of neighboring land. Assure is presently evaluating uphole formations on these sections believed to be prospective for gas in part based on logs and samples recorded during the deeper test.
ABOUT ASSURE ENERGY, INC.
Assure Energy, Inc. is an Alberta, Canada corporation that is principally engaged in the exploration, development and acquisition of petroleum and natural gas located in Western Canada. Assure operates through its wholly owned subsidiary Assure Oil and Gas Limited and its wholly owned subsidiary Westerra 2000 Inc. Assure owns approximately 48.5% of the issued and outstanding shares of Quarry Oil & Gas Ltd., an Alberta corporation, through Assure Holdings Inc. Assure trades on the OTCBB under the symbol ASURF and also trades on the Frankfurt Stock Exchange (WKN 357954) under the Symbol ASL.
ABOUT QUARRY OIL & GAS LTD.
Quarry Oil & Gas Ltd., an Alberta, Canada corporation, is a junior oil and gas company engaged in the exploration and development of petroleum and natural gas properties located in Western Canada. Quarry's common shares trade on the TSX Venture Exchange under the symbol QUC.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
To find out more about Assure Energy, Inc. (OTCBB: ASURF) visit our website at www.assure-energy.com