DGAP-News: Activa Resources AG / Key word(s): Drilling Result Activa Resources AG: strong production start at new OSR-Halliday horizontal well

14.11.2011 / 08:10

Corporate News 14th November 2011

Activa Resources AG: strong production start at new OSR-Halliday horizontal well

- Second horizontal well produces 26,000 BOE in first 40 days - 3 additional wells scheduled in 2012 - Significant reserve upgrade expected

Bad Homburg, November 14th, 2011. Activa Resources AG, an independent oil and gas company with operational knowhow in the development and efficient exploitation of oil and natural gas properties, provides the following details of its 2nd horizontal well at OSR-Halliday (110-2H), located in the southern half of the field.

The 110-2H well, the second of up to 50 horizontal wells to be drilled, has produced 23,000 barrels of oil and 21,000 MCF since going on production 40 days ago. The well is currently producing 600 BOPD and 522 MCFGPD plus liquids (together approx. 700 BOED).

Activa CEO Leigh A. Hooper explains: 'This excellent result confirms the high production potential of the southern half of the OSR-Halliday field. Oil and gas revenues from this well, of which we own 22%, have exceeded USD 2 million to date. Daily production rates are steady and we expect the well to pay out in early 2012'.

Activa estimates that OSR-Halliday holds at least 18.6 million BOE of economically producible primary reserves and plans to drill 3 wells in 2012 to further develop the field. These will by funded out of cash flows and under Activa's credit facility with Texas Capital Bank.

CEO Hooper adds: 'As a result of this well and performance of offset wells drilled by Chesapeake and Petromax, we are looking forward to a major shift in our reserves from probable to proven (1P). This will lead to a significant increase in the PV10 value of our proven reserves. This new well has, as a result, materially enhanced the value of our company.'

The 110-H2 well was drilled during the third quarter to a vertical depth of 8,700 feet with a 7,000 foot lateral extension. Following fracture-treatment the well was put on production at the end of September. Well costs amounted to approx. USD 6.5 million.

The Management Board

Enquiries: Leigh A. Hooper, CEO, Tel. + 49 6172 483 2352

About Activa Resources AG Activa Resources AG is an independent oil and gas company which focuses on the acquisition, development and exploitation of oil and natural gas properties. Activa Resources AG is listed on the Frankfurt stock exchange and is based in Bad Homburg, Germany. The company's management and technical team comprise oil industry experts with many years operational experience at major international oil companies. Further information can be found at www.activaresources.com.

Forward-looking statements This news release includes forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning estimates of expected drilling and development wells and associated costs, statements relating to estimates of, and increases in, production, cash flows and values and other statements which are not historical facts. When used in this document, the words such as 'could,' 'plan,' 'estimate', 'expect', 'intend', 'may', 'potential', 'should' and similar expressions are forward-looking statements. Although Activa believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, that geological conditions in the reservoir may not result in commercial levels of oil and gas production, that changes in product prices can have a material impact and that Activa fails to raise sufficient capital to adequately fund its activities.

End of Corporate News

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