Shona Energy Company Inc. Announces Second Successful Development Well
CALGARY, AB, Nov. 3, 2011 /PRNewswire/ – Shona Energy Company, Inc. (“Shona” or
the “Company”) (TSXV: SHO) through its wholly-owned subsidiary, Geoproduction Oil & Gas Company
(“Geoproduction”) of Colombia, today announced the successful
completion and testing of the Nelson-4 development well, a northeast
offset to the Nelson-2 discovery well, located within the Esperanza
concession in the Lower Magdalena Basin of Colombia. This concession
is 100% retained and operated by Geoproduction.
“Nelson 4 has significant production capacity which gives us the
opportunity to expand our existing sales commitments,” said James L.
Payne, CEO of Shona. “The current drilling results have ensured that
we are developing a significant gas accumulation at the Nelson field
while at the same time we can continue to pursue additional exploration
prospects on the concession.”
Nelson-4 has an estimated 152 feet of net pay in the Cienaga de Oro
formation. A total of 133 feet was perforated and tested at a rate of
6.1 million cubic feet per day (MMCFPD). The calculated absolute open
flow was 264 MMCFPD. The Nelson-2 discovery and Nelson-3 development
wells had test rates of 8.5 MMCFPD and 11.6 MMCFPD, respectively.
Nelson-3 is a southwest offset to Nelson-2. All Esperanza production
facilities have been installed and Shona expects final commissioning of
gas processing systems to be complete by the first part of November.
Certain information included in this press release constitutes
forward-looking information under applicable securities legislation.
Such forward-looking information is provided for the purpose of
providing information about management’s current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as making
investment decisions. Forward-looking information typically contains
statements with words such as “anticipate”, “believe”, “expect”,
“plan”, “intend”, “estimate”, “propose”, “project” or similar words
suggesting future outcomes or statements regarding an outlook.
Forward-looking information in this press release may include, but is
not limited to, information with respect to: operational decisions and
the timing thereof, expected rates of production from producing wells
on Shona lands and future drilling and exploration plans on the
properties of Shona. Forward-looking information is based on a number
of factors and assumptions which have been used to develop such
information but which may prove to be incorrect. Although Shona
believes that the expectations reflected in such forward-looking
information is reasonable, undue reliance should not be placed on
forward-looking information because Shona can give no assurance that
such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified in this press release,
assumptions have been made regarding and are implicit in, among other
things: the ability of Shona to complete transactions described in this
press release and the timely receipt of any required regulatory and
shareholder approvals. Readers are cautioned that the foregoing list
is not exhaustive of all factors and assumptions which have been used.
Shona undertakes no obligation to update forward-looking statements if
circumstances or management’s estimates or opinions should change,
unless required by law. The reader is cautioned not to place undue
reliance on this forward-looking information.
The securities of Shona have not been and will not be registered under
the United States Securities Act of 1933, as amended and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirement. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
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 press
SOURCE Shona Energy Company, Inc.