The Company is preparing to put on production its first well after testing economic quantities of oil from the Bakken sandstone. The well was drilled to a total depth of 879 metres and testing indicates production rates should be similar to that of the nearby Sinclair and Koala fields where initial rates are between 50 and 100 barrels of light sweet oil per day. The success of this well validates the Company’s Bakken play concept and establishes a new Bakken fairway while setting up another eight to ten development locations on offsetting lands controlled by the Company for drilling later this summer.
The second well, located in a different area of the Bakken Formation, has been drilled and cased and is awaiting completion and testing. The Company is also working on approvals necessary to drill another two wells in Saskatchewan/Manitoba region prior to spring break-up, weather permitting, while a seismic survey is being planned to further delineate the development drilling program around the discovery well.
“This is a very exciting time for Ceres and I’m pleased that one of our first two wells has already proven to be economic” said Paul Moller, President and CEO. “Based on this success, we are now planning an extensive drilling program for the balance of 2009.”
The Company has land holdings consisting of:
Saskatchewan/Manitoba 45,429 (Gross) acres 27,411 (Net) acres
Alberta 26,055 (Gross) acres 15,337 (Net) acres
Saskatchewan/Manitoba Farm-in 45,440 acres
About Ceres and Reliable
Ceres is an Alberta based public company listed on the TSX Venture Exchange and conducts its operations through Reliable Energy Ltd, a wholly owned subsidiary. The Company is currently focused on two core areas in the Western Canadian Sedimentary Basin. The first core area consists of an unconventional resource play in the Bakken/Three Forks formation situated on the Saskatchewan – Manitoba border. The second is a Devonian reef play in central Alberta.
ON BEHALF OF THE BOARD OF
Ceres Capital Corp.
Paul Moller, President & CEO