CALGARY, Alberta, Aug. 7, 2014 /PRNewswire/ -- Chelsea Oil
& Gas Ltd. ("Chelsea" or the
"Company") (OTCQB: COGLF) is pleased to provide the following
update on industry drilling activity adjacent to the Company's ATP
582 in the South Georgina Basin in Queensland and the Northern Territory,
Australia.
In Queensland, Central
Petroleum Limited ("Central") and Total S.A ("Total") recently
announced the spudding of Whiteley-1, the first of a multi well
unconventional gas exploration drilling program operated by
Central, in partnership with international energy company Total.
Whiteley-1 is approximately 3-5 kilometers from the eastern
boundary of ATP 582 and will be a test of the thicker Lower Arthur
Creek sequence within the Toko Syncline, considered by Chelsea to be the most hydrocarbon-prospective
area of the South Georgina Basin. The zone is planned to be
extensively logged to evaluate its hydrocarbon potential, as well
as fully cored to assess reservoir properties and gas desorption.
A second well to follow Whiteley-1 was also announced, being
Gaudi-1, anticipated to spud mid-September and also testing the
thicker Lower Arthur Creek sequence within the Toko
Syncline. Central is expected to announce completion and
stimulation plans in due course following completion of the
drilling and coring program. Given the proximity of these
wells, results from operations should provide an excellent
indication of the potential of Chelsea's approximately one million acres of
prospective Lower Arthur Creek strata, also within the Toko
Syncline area.
In addition to the commencement of operations by Central /
Total, PetroFrontier Corp. ("PetroFrontier") recently announced the
completion by Statoil ASA ("Statoil") of the drilling of their
optional fifth and final vertical test well to be drilled as part
of their 2014 work plan on their permits immediately adjacent to
ATP 582 in the Northern Territory. PetroFrontier further announced
that the OzAlpha-1 and OzBeta-1 wells have been selected for
completion and testing as they are reported to provide the best
opportunities encountered in their five wells. These two wells,
while in the Northern Territory, are the closest (approximately 50
to 60 kilometers) to ATP 582 of the five wells drilled, and are
closest to the Toko Syncline wherein the prospective horizon
greatly thickens and is thought by Chelsea to be the most prospective part of the
South Georgina Basin.
While favorable completion results from the Statoil /
PetroFrontier wells would reflect well on the Company's lands, the
Central / Total wells are considered to be a better assessment of
the potential of Chelsea's ATP
582, as these wells are located in the thickest and deepest part of
the Toko Syncline which is held by Chelsea and Central / Total.
Chelsea enjoys modest work
commitments to maintain ATP 582 and is encouraged by these large
capital commitments by super-majors immediately adjacent to its
permit, which is expected to provide a free evaluation of
Chelsea's lands.
Please refer to the attached map illustrating the approximate
locations of the new wells and Chelsea's ATP 582.
About Chelsea Oil & Gas Ltd.
Chelsea is an Australian
focused exploration, development and production company operating
mainly 100% working interest assets comprised of 5.2 million net
acres of land onshore Queensland,
Australia including 6 existing oil pools and 1 gas pool with
independently evaluated reserves. Further, and potentially more
significantly, the Company has one million net acres, also in
Queensland, with world-class
resource potential in an emerging unconventional play currently
being evaluated by two super-majors who have committed to invest
over $A400 million in the next 3
years on immediately offsetting lands.
Chelsea is underpinned by circa
12 million gross (68,000 net) acres of royalty interest lands,
including the Hornet discovery in the Cooper Basin. These interests
currently generate cash flow which will increase as assets such as
Hornet are developed, with no capital expenditures required to
realize that revenue.
Forward Looking Statements
This press release contains information that constitutes
"forward-looking information" or "forward-looking statements"
(collectively "forward-looking information") within the
meaning of applicable securities legislation. This forward-looking
information includes, among others, statements regarding: the
timing of Statoil and Central's drilling programme; the expected
operations to be conducted by Central and Statoil; the impact of
the operations of Central and Statoil on Chelsea's lands and other expectations,
beliefs, plans, goals, objectives, assumptions, information and
statements about possible future events, conditions, results of
operations or performance. Information regarding business plans
generally assumes that the extraction of crude oil, natural gas and
natural gas liquids remains economic.
Undue reliance should not be placed on forward looking
information. Forward looking information is based on current
expectations, estimates and projections that involve a number of
risks which could cause actual results to vary and in some
instances to differ materially from those anticipated by
Chelsea and described in the
forward looking information contained in this press release or
otherwise. The material risk factors include, but are not limited
to: the risks of the oil and gas industry, such as operational
risks in exploring for, developing and producing crude oil and
natural gas, reduced commodity prices and market demand and
unpredictable facilities outages; risk and uncertainties involving
geology of oil and gas deposits; uncertainty related to securing
sufficient egress and markets to meet shale gas production; the
uncertainty of reserves, resources and ultimate recovery estimates,
and underlying risks related to the novelty of industry and Company
understanding of reservoirs of the nature of the reservoirs the
Company is exploiting and plans to exploit; the new and rapidly
evolving technology used to exploit those reservoirs, the
uncertainty of estimates and projections relating to production,
costs and expenses (which in many cases are of necessity based on
extrapolations of short term performance); potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures; fluctuations in oil and gas
prices, interest rates; health, safety and environmental risks;
changes in general economic and business conditions; the
possibility that government policies or laws may change or
governmental approvals may be delayed or withheld and the
possibility that third parties may interfere with the Company
conducting its business. The foregoing list of risk factors is not
exhaustive. Forward looking information is based on the estimates
and opinions of the Company's management at the time the
information is presented. The Company assumes no obligation to
update forward looking information should circumstances or
management's estimates or opinions change, except as required by
law.
In addition, certain information contained in this press
release is based upon information from press releases, independent
industry and other publications and websites. None of these sources
have provided any form of consultation, advice or counsel regarding
any aspect of, or is in any way whatsoever associated with,
Chelsea. Actual outcomes may
vary materially from those forecast in such press releases, reports
or publications, and the prospect for material variation can be
expected to increase as the length of the forecast period
increases. While the Company believes this data and information to
be reliable, such data and information is subject to variations and
cannot be verified with complete certainty. The Company has
not independently verified any of the data or information from
third party sources referred to in this press release or
ascertained the underlying assumptions relied upon by such
sources.
Statements contained in this press release and corporate
information relating to future results, events and expectations are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements involve known and unknown risks, uncertainties,
scheduling, re-scheduling and other factors which may cause the
actual results, performance, estimates, projections, resource
potential and/or reserves, interpretations, prognoses, schedules or
achievements of the Corporation, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such statements. Such factors
include, among others, those described in the Corporation's annual
reports on Form 20-F on file with the U.S. Securities and Exchange
Commission.
We seek safe harbor.
SOURCE Chelsea Oil & Gas Ltd.