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WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy Services
Hazloc Heaters
WEC - Western Engineered Containment
Copper Tip Energy

Front Range Announces Montney Test Results at East Pepper, Alberta


Date issue: May 08, 2017
Time in: 4:11 PM e


CALGARY, AB --(Marketwired - May 08, 2017) - Front Range Resources Ltd. ("Front Range" or the "Company") (TSX VENTURE: FRK) announces the results of the second well in its horizontal Montney winter drilling program. Both wells are located on the Company operated 44-section Pepper, Alberta land block (100% W.I.) and represent frontier Montney discoveries, some 42 kilometres from the next nearest producing horizontal Montney wells.

The Company's first horizontal Montney well at East Pepper, Alberta has been successfully completed and flow tested in the Basal Montney. The 100% W.I. 06-28-52-22W5 well (the "6-28 Well") has confirmed the presence of natural gas and 42 degrees light oil in this horizon. Reservoir quality appears to be excellent (up to 6 to 9% porosity, 0.1 mD permeability) and open fractures were noted in samples from the well. The Company believes that this combination of reservoir quality and fracturing is responsible for the high observed per frac productivity.

Over the last 24 hours of the 15 day flow test period, the 6-28 Well flowed at an average rate of approximately 4.36 mmcf/d of natural gas (0.03% H2S) and 1.25 barrels per day of 42 degrees light oil at a flowing casing pressure of 6,187 kPa (897 psi). To date, load fluid volumes representing 47.5% of total load fluid have been recovered. It is of note that free oil appeared only after 42.9% of the load fluid was recovered. The reason for the difference in oil production between the 6-28 Well and the Company's 3-21 vertical well drilled in October 2014 is being evaluated.

The 6-28 Well was drilled to a total measured depth of 4,385 metres (3,609 metres TVD) with a 671 metre horizontal leg in the Basal Montney. The 6-28 Well was completed with 10 fracs with an average of 47.8 tonnes of proppant placed per stage.

Peter Cowling, President of Front Range, stated, "In my experience, it is remarkable for a well to exhibit this kind of productivity from only a 10-stage completion, particularly this early in the delineation of a play. These results confirm our view that the Pepper Montney play compares very favourably with other established fields in terms of reservoir quality, pressure, and productivity. Despite operational challenges encountered during drilling that limited our lateral length and completion program, we are seeing flow rates and pressures that are suggestive of a top-tier Montney resource. Productivity per frac came in at 436 mcf per day (4,360 mcf divided by 10 stages), which stacks up very favourably against established deep basin Montney fields with 60 or more wells. Determining per frac productivity and confirming the presence of oil in the Basal Montney were key deliverables for us in this well. Productivity per frac is an important metric in that it indicates how we would expect total well productivity to scale in future wells with longer laterals and higher stage counts".

The table(1) below gives a comparison of our East Pepper test to latest published results from other established Montney fields.



Montney Field Stage Count IP30 mcfe/day per stage Area Well Count ---------------------------------------------------------------------------- Pepper, Basal Montney 10 436(2) 1 ---------------------------------------------------------------------------- Kakwa 38 316(3) 450 ---------------------------------------------------------------------------- Glacier 28 268(4) 108 ---------------------------------------------------------------------------- Bigstone 40 237(5) 86 ---------------------------------------------------------------------------- Simonette 71 118(6) 63 ----------------------------------------------------------------------------



1. Above information obtained from publicly available industry data. These

numbers are not necessarily typical of average wells in the areas but represent the most recent results by the key industry participants in the respective areas. IP30 mcfe/day per stage is not meant to represent an economic comparison but is used as a comparison of different fields per stage deliverability. 2. Final 24 hour average rate after 15 day flow test. 3. Seven Generations Energy Ltd. March 8, 2017 press release indicating average stage count of 38 stages and average IP30 rate of 2,000 boe/day on most recent 6 well pad. 4. Advantage Oil & Gas Ltd. May 2017 Corporate Presentation indicates budget type curve of 7.5 mmcf/day and 28 stage frac for 3 Lower Montney wells. 5. Delphi Energy Corp. May 2017 Corporate Presentation indicates recent well drilled 13-15 IP30 rates of 1,579 boe/day with 40 stage completion 6. Cequence Energy Ltd. March 13, 2017 press release indicates 16-33-61- 27W5 well completed with 71 stage frac and 21% liquids. Public data shows IP30 of 6.6 mmcf/day.


He added, "I believe that the first wells into a new play are seldom your cheapest or your best. Accordingly, I have seen well costs drop and productivity increase as Montney plays mature and I would expect the same here. The difference in oil gravity and yield between the 6-28 Well and the vertical 3-21 well suggests that there may be some compartmentalization in the Basal Montney at this particular location, or it may mean that we just haven't recovered enough load fluid yet. We have identified several modest-cost options that would allow us to further evaluate Montney gas and liquids compositions in the immediate area. I'd like to thank everyone who has supported us to this point and I look forward to updating shareholders on our future plans in due course. Given the scale of the opportunity here, and in light of the productivity potential identified in this Basal Montney well, we are now evaluating multiple paths with respect to our next steps at Pepper."


The Company cautions that flow test results are not necessarily indicative of long-term performance or of ultimate recovery.

This news release contains certain forward-looking information and statements ("forward-looking statements") within the meaning of applicable securities laws. In particular, but without limiting the foregoing, this news release contains statements concerning the productivity per frac of the 6-28 Well, the evaluation of the difference in oil production between the 6-28 Well and the Company's 3-21 vertical well, expectations regarding costs and productivity of future wells as the Montney play matures, further evaluation of the Montney gas and liquids compositions in the immediate area and the evaluation of multiple paths with respect to next steps at the Company's Pepper Montney play.

Forward-looking statements are based on a number of material factors, expectations or assumptions of the Company which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, including but not limited to: whether the Company's exploration and development activities respecting its prospects will be successful or that material volumes of petroleum and natural gas reserves will be encountered, or if encountered can be produced on a commercial basis; the ultimate size and scope of any hydrocarbon bearing formations on its lands; that drilling operations on its lands will be successful such that further development activities in these areas are warranted; that the Company will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the general stability of the economic and political environment in which the Company operates; drilling results; field production rates and decline rates; the general continuance of current industry conditions; the timing and cost of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products; changes in commodity prices; changes in the demand for or supply of the Company's products; unanticipated operating results or production declines; changes in tax or environmental laws, changes in development plans of the Company or by third party operators of the Company's properties, increased debt levels or debt service requirements; inaccurate estimation of the Company's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in the Company's public disclosure documents. Additional information regarding some of these risks, expectations or assumptions and other factors may be found under in the Company's Annual Information Form for the year ended December 31, 2016 and the Company's Management's Discussion and Analysis prepared for the year ended December 31, 2016. The reader is cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (6 mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.


- END RELEASE - 08/05/2017

For further information:

For further information, please contact:

Peter Cowling
Tel: 403-262-1700

Gordon Mayr
Chief Operating Officer
Tel: 587-955-8873


TEL: 403-237-5700
FAX: 403-265-3506


INDUSTRY: Energy and Utilities - Oil and Gas
RELEASE ID: 20170508CC016

Press Release from Marketwired 1-866-736-3779

All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization issuing the release, not to The Canadian Press.

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