EMERALD BAY ENERGY PROVIDES UPDATE ON OPERATIONS AT ISABELLA #2
Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) (the “Company” or “Emerald Bay”) reported today on operations at the Isabella #2 well in Gonzales County, Texas. Hydraulic fracturing of the Navarro formation has been completed, and the well has been swabbed for a total of 28 days to recover the frac fluids and measure in-flow rates. In addition to the swabbing operations, the well has intermittently been shut in to monitor pressure builds. Approximately 75% of the 2,132 barrels of fluids used to frac the well have been recovered during swabbing operations, but no measurable quantities of hydrocarbons from the Navarro formation have been observed to this point. The well has been shut in for the past 9 days to allow time to monitor pressure builds.
Pending results from this pressure test, the Company and partner, Cotulla Energy Resources Ltd. (“Cotulla”), will resume swabbing operations, or move forward with plans to resume testing the Buda formation and the primary target in the well, the Eagle Ford formation. While commercial quantities of hydrocarbons were observed in the initial test of the Bud, there was also a significant in-flow of associated water. The Company believes that the water is coming from the Austin Chalk formation, up- hole from the Buda and Eagle Ford, and that a successful cement squeeze will isolate the Buda and Eagle Ford from the water and increase the potential of the successfully completing Isabella #2 in either formation.
As noted in previous news releases, the Isabella #2 well is a re-entry well with multiple zones of interest including the Buda, Eagle Ford, lower Austin Chalk, and Navarro formations. To clarify, to date the Company has tested commercial quantities of hydrocarbons in the initial test of the Buda formation and, due to certain opportunities in the area, the Company and its partner Cotulla, decided to move up-hole, bypassing the Eagle Ford and lower Austin Chalk for the time being, to test the Navarro formation.
The Isabella prospect includes the Company’s acquisition of several mineral leases, totaling approximately 86 acres, and the Isabella #2 wellbore. The Isabella 2 well produced from the upper Austin Chalk formation in the past, but the previous operator did not drill to the deeper Eagle Ford and Buda formations. The Company has identified the Isabella 2 wellbore as a prime target to explore for a high impact deep well on trend with Eagle Ford, Buda, and lower Austin Chalk production in Gonzales County, Texas. The Company and Cotulla also identified the potential Navarro zone in the well, which is currently being tested.
Under terms of the partnership agreement, Cotulla pays 100% of the Isabella costs to earn a 75% interest. Emerald Bay retains a 25% interest in the well and acreage at no cost to the Company.
ABOUT EMERALD BAY
Emerald Bay Energy Inc. (TSX Venture: EBY, OTC: EMBYF) is an energy company with oil producing properties in Southwest Texas as well as non-operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadalupe, Texas, where the Company currently now owns a 50.00% working interest those projects. Additionally, the Company owns and operates various working interests in the HugoCellR, Cotulla, and MarPat partnerships. The Company also owns 75% of Production Resources Inc., a South Texas oil company.
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For further information, please contact: Emerald Bay President, Shelby D. Beattie, (403) 262-6000, firstname.lastname@example.org, www.ebyinc.com
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