TORONTO, ONTARIO (May 20, 2011) – Petrolympic Ltd. TSX.V: PCQ (“Petrolympic” or the “Company”) is pleased to announce the first appraisal well on the Chittim Ranch property has been Spud and 300 feet of surface casing has been set. Drilling expects to commence the first week of June 2011. A drill rig had been scheduled to commence drilling in May, but the rig experienced mechanical problems and a new drilling rig will arrive at the end of the month. Chittim Ranch, Petrolympic’s newly acquired leasehold, is located in the prolific Maverick Basin, Texas, USA.
The primary objective of this first appraisal well – the 80-2v - is to appraise all hydrocarbon horizons to 4000 feet. Petrolympic has entered into an exploration agreement with Texas HBP and Shell Western E&P, pursuant to which Petrolympic has the right to earn a 50% working interest (yielding a 37.5% net revenue interest) in the Chittim Ranch property. (For further details, please refer to the Company's press release of May 11, 2011, available under the Company's SEDAR profile at www.sedar.com.) Big Shell Oil and Gas, Inc. ("Big Shell"), an affiliate of Texas HBP, is the operator of the Chittim Ranch property and has engaged Arrow Drilling ("Arrow") as the drilling contractor. Big Shell and Arrow expect to reach target depth on the Chittim Ranch property within 10 to 13 days from commencement of drilling.
“We are very encouraged by the potential of this project and accordingly have earmarked funds to immediately begin confirmation drilling of this well,” said Petrolympic CEO Mendel Ekstein. “Given the production activity in the surrounding area, we believe that this well, and the Chittim Ranch property in general, holds significant potential. We believe that this project could generate near-term revenue for Petrolympic and self-finance further exploration in the area.”
The Chittim Ranch 8,000 + acre block is well positioned within the preferred oil window of the prolific Eagleford Shale resource play and located among currently producing fields. The acreage also hosts other highly productive formations such as the Buda, Georgetown, Edwards and McKnight. The acreage is defined by 3D seismic and extensive offsetting well control. Several major oil and gas companies and large independent producers are currently active in this area. A large independent oil and gas company is sharing the lease line with the proposed acquisition and is currently developing the Georgetown formation.
Further technical information concerning the Chittim Ranch property will be provided as it becomes available.
About Petrolympic Ltd.
Petrolympic Ltd. (PCQ.V) is a Canadian junior oil and gas company actively exploring for premium light crude oil and natural gas in North America. The Company is presently focused on its near-term oil production 8,000+ acre asset in the prolific Maverick Basin of Texas, USA. The company also holds an interest in a total 754,216 hectares (1,863,668 acres) of oil and gas exploration permits in the Appalachian Basin of Quebec that include holdings in the St. Lawrence Lowlands and Gaspe Peninsula. The Company's holdings in the St. Lawrence Lowlands are a 30% interest in 217,370 hectares (536,941 acres) through a joint venture with Resources & Energie Squatex Inc.; a 12% interest in 8,000 hectares (19,768 acres) through a Farmout Agreement with Canbriam Energy Inc., as well as a 100% interest in 56,622 hectares (139,913 acres) located over the Lowlands shallow carbonates platform on the south shore of the St. Lawrence River, less than 30 kilometres southwest of Montreal. These properties represent a major position in the Utica-Lorraine and Trenton-Black River Plays. Petrolympic also maintains holdings in the Gaspé and Bas-St. Lawrence regions, including a 30% interest in 431,339 hectares (1,065,839 acres) through a joint venture with Squatex and a 100% interest in a block of exploration permits totalling 40,885 hectares (101,029 acres) located between Rimouski and Matane prospective for hydrothermal dolomite hosted light oil.
This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs and the availability of exploration results. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Petrolympic documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents and delays in completing exploration activities not all of which are in the control of Petrolympic. The forward-looking information contained herein is Petrolympic's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur. The reader is cautioned not to rely on these forward-looking statements. Petrolympic disclaims any obligation to update these forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility of the adequacy or accuracy of this news release.
For further information please contact:
President and CEO
Or visit www.petrolympic.com.
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Cutler McCarthy Consulting