Marksmen Announces Operational Update

Rhea-AI Summary

Marksmen Energy Inc. announced significant progress on its Davis Holbrook #2 well (DH2) in Pickaway County, Ohio. Operating with a 75% working interest, DH2 has shown promising results, swabbing oil at a rate of 16 bbls per hour. Initial production from DH2 may surpass that of Marksmen's best well, DH1, which has produced over 64,000 barrels since 2016. The company is also set to begin drilling the Webb #1 well on October 4, 2021, where it holds a 25% working interest. These developments will contribute positively to the company’s cash flow.

Positive

• DH2 shows promising initial oil swabbing rate of 16 bbls/hour, indicating strong production potential.
• Expected initial production rates for DH2 may exceed those of the successful DH1 well, which produced over 64,000 barrels.
• Upcoming drilling of the Webb #1 well offers additional growth opportunities with a 25% working interest.

Negative

• None.

CALGARY, Alberta, Oct. 01, 2021 (GLOBE NEWSWIRE) -- Marksmen Energy Inc. (“Marksmen” or the “Company”) (TSXV: MAH) announces the following:

Pickaway County, Ohio – Further to Marksmen’s news release dated August 26, 2021, Marksmen is pleased to provide further information with respect to the drilling of the Davis Holbrook #2 well (“DH2”) in the Cambrian Knox formation. Marksmen is the operator of the well and holds a 75% working interest. It is the first of up to five vertical offset wells to Marksmen’s Davis Holbrook #1 well (“DH1”). DH1 is Marksmen’s best well to date, drilled in 2016, with initial production over 80 bbls of oil per day. It has since produced over 64,000 barrels of oil and continues to produce at approximately 25 bbls of oil per day.

Completing DH2 was delayed waiting on a service rig. On September 29, 2021, the lower of three zones was perforated at an interval between 2,408 and 2,416 feet, and then acidized. With high porosity and permeability, this formation does not require hydraulic fracturing. DH2 was then swabbed for the remainder of the daylight hours. It swabbed oil and saturated natural gas at a swab rate of 16 bbls of oil per hour or 384 bbls per day. DH2 was then shut-in overnight. When operations were resumed in the morning the oil level rose from bottom up to within 200 feet of surface, an indicator of a gas charged oil reservoir. DH2 was again swabbed for an additions five hours at the same rates per hour. There was no water produced during the swabbing process.

Marksmen, in conjunction with our operating partner, decided to hold off perforating the upper two zones and to concentrate on bringing this lower zone on production and to technically evaluate its productivity and potential independent of the other two zones. DH2 will be carefully produced, using best oilfield production practises. It should be noted that swabbing rates are not necessarily an indicator of daily pumping rates or indication of long term performance or ultimate recovery. However, Marksmen expects the initial production rates could exceed those of DH1.

Production tubing and rods have now been installed in DH2. Flow lines to the existing DH1 tank battery, as well as a pumpjack and related equipment will be installed in the next few days and DH2 will be brought on production. It is anticipated that the upper zones, that have similar logs and characteristics of the lower zone, will be perforated, and brought on production as soon as possible.

Southeast Ohio Drilling Opportunity – Further to Marksmen’s news release of September 21, 2021, the Company has a 25% working interest in the Webb #1 well operated by David R. Hill Inc. (“Hill”) of Ohio. The well location has been prepared, the drilling rig is currently being set up on location and drilling is anticipated to begin on or about October 4, 2021. It is anticipated that the drilling operation will take up to three weeks. Marksmen has paid a cash-call for its share of drilling costs to Hill.

Archie Nesbitt, President and Chief Executive Officer of Marksmen states, “The preliminary results from DH2 exceed our expectations. We anticipate that DH2 will exceed DH1’s initial production rates and it further validates other offset locations. We look forward to providing further updates on production rates of the lower zone and completion of the upper zones. DH2 will be an important contributor to the Company’s cash-flow. This, and the very exciting joint operating agreement with David R. Hill, Inc. provides Marksmen with an excellent opportunity to further exploit our Pickaway County, Ohio properties and to expand our scope of operations to another area of Ohio, in the prolific Trenton Black River formation.”   

For additional information regarding this news release please contact Archie Nesbitt, Director and CEO of the Company at (403) 265-7270 or e-mail ajnesbitt@marksmenenergy.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to future drilling and operational programs and the timing thereof, and production rates for DH2. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Marksmen’s disclosure documents on the SEDAR website at www.sedar.com. Marksmen does not undertake to update any forward-looking information except in accordance with applicable securities laws.

FAQ

What are the initial production expectations for the DH2 well of Marksmen Energy (MKSEF)?

Marksmen Energy anticipates that the initial production rates for the DH2 well could exceed that of its best-performing well, DH1.

When is drilling expected to begin for the Webb #1 well by Marksmen Energy (MKSEF)?

Drilling for the Webb #1 well is expected to begin on or around October 4, 2021.

What working interest does Marksmen Energy (MKSEF) have in the Davis Holbrook #2 well?

Marksmen Energy holds a 75% working interest in the Davis Holbrook #2 well (DH2).

What is the swabbing rate for the DH2 well announced by Marksmen Energy (MKSEF)?

The DH2 well swabbed oil at a rate of 16 barrels per hour, which translates to approximately 384 barrels per day.