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 unlawful.
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SOURCE Shona Energy Company, Inc.