EMERALD BAY ANNOUNCES ADDITIONAL FOUR WELL DRILL COMMITMENT IN PARTNERSHIP WITH ALLIANCE PETROLEUM
Feb 16 2016
Emerald Bay Energy Inc. (TSX Venture: EBY) (the “Company” or “Emerald Bay”) is pleased to announce it has received an additional four-well drilling commitment through its partnership with Alliance Petroleum Interests (“Alliance”), bringing the total number of new wells in development drilling in South Texas to eight.
The previously announced four-well drilling program is under way. The MarPat 1 and MarPat 2 were drilled in mid-January and drilling operations at MarPat 3 and MarPat 4 were completed late last week. All four wells showed the presence of hydrocarbons in multiple formations as expected, and Emerald Bay is moving forward with completing and equipping the wells within the next two to three weeks. The Company will then follow-up and drill four more wells and it is anticipated that all eight wells could be producing as early as March 31. Alliance and Emerald Bay have agreed that, should results from these first eight wells be successful as anticipated, then an ongoing development program to drill an additional 40 to 50 wells in 2016 is highly possible.
“As the first joint project, Emerald Bay and Alliance are very pleased with the current economics of this type of development drilling despite current low commodity prices,” said Shelby Beattie, President of Emerald Bay. “With over thirty years of experience in South Texas, Emerald Bay has established a good relationship with service companies and has been able to put together a cost effective drilling and completion program whereby a multi-well drilling program in proven oil fields provides a strong return on investment.”
About Emerald Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas. Alliance Petroleum Interests, a private company with oil assets in four states, has partnered with EBY, the operator, on the development and expansion of South Texas land. The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please visit www.emeraldbayenergy.com.
Neither 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 release.