INDEPENDENT STUDY SHOWS THE “EXCEPTIONAL POTENTIAL” OF THE KEVIN SUNBURST DOME
COMPANY PRESS RELEASE
AXIOM OIL AND GAS CORP.
Trading Symbol (AXIO.OB)
FOR IMMEDIATE RELEASE
DATE: October 16, 2014
An independent study was carried out in January 2014 on the oil and gas leases held by Axiom Oil and Gas in Toole County, MT drawing upon existing well information integrated with 3D seismic and verified using the HIS online database.
Below is a representation of the key findings:
AN OVERVIEW OF THE NISKU FORMATION
“The Nisku Formation, the key target of Axiom’s drilling program, averages approximately seventy feet throughout the study area. Open shelf low energy carbonates in the lower third are overlain by twenty feet of grainstones and packstones where the productive oil reservoir is developed. This Middle layer grades upward into supratidal laminated dolomites and anhydrite. Being finally capped by a ten foot layer of bedded anhydrites and dolomites; the Nisku represents a regressive depositional sequence. The Nisku, at approximately 3,000 feet, is productive in the East Kevin and Nine Mile Oilfields. Both Fields are highly economic with recoveries of over one million barrels of oil for the East Kevin Field from twenty wells. Cumulative oil production is variable within the Field as nine of these wells have produced over fifty thousand BO per well, and several vertical wells have or will exceed 90,000 BO. Initial potentials range from 8 to 108 BOPD. Preliminary economic analysis indicates a ROI in excess of 5:1 in a successful case. “
“The productive Nisku reservoir in the East Kevin and Nine Mile Oilfields trends northwest to southeast. The reservoir is developed approximately five miles long in strike at East Kevin and two miles at Nine Mile. Each Field shows development to date of about one mile in a dip direction. The Nisku reservoir is a dolomitized grainstone/packstone porosity zone averaging five to fifteen feet in thickness. Productive porosity ranges from 3% to 24% typically with one tenth to 3 millidarcies of permeability. Reservoir drive appears to be gas expansion with no formation water.”
“Volumetric analysis of the Nisku oil reservoir was performed on individual wells in East Kevin and Nine Mile Fields. The oil recoveries predicted by volumetric calculations were compared to a given well’s actual recovery to date and projected ultimate recovery. Observed oil recoveries were significantly higher than predicted by the calculations. Normally, primary oil recoveries from carbonates range from ten to fifteen percent of the original oil in place (OOIP). Observed recoveries in several wells exceed twenty percent. The difference can be explained by the “non-perforated” portion of the reservoir in a given well significantly contributing to production. And, in some instances, the drainage area of a given well may be larger than forty or even eighty acres. This is important in locating the location(s) of development well(s) for depletion concerns.”
THE POTENTIAL OF HORIZONTAL DRILLING AND MULTI STAGE FRACKING
“Analysis reviewed in the preceding paragraph suggests that substantial oil volumes exist in the “non-perforated” parts of the Nisku zone that have relatively less porosity and permeability than the Middle Nisku reservoir in a given well. The most effective method of producing from these portions of the reservoir is to apply horizontal drilling and multistage fracturing (“frac”) techniques that have been developed by industry in the last eight years. The target reservoir is ideal for this application. The Nisku reservoir and the sequences overlying and underlying the reservoir facies are water free and the upper and lower zones mechanically confine the Nisku reservoir; allowing aggressive “frac” techniques to be applied. Horizontal drilling will allow a larger cross section of the reservoir to be exposed to the borehole for production. Multistage “fracs” along the horizontal borehole will induce multiple fractures into the reservoir. These fractures will be the conduits where oil and gas can move from the “tight” zones having low permeability and porosity. These same zones would not be produced in a vertical well, at least not nearly as efficiently. Typically, horizontal drilling using multistage “fracs” will result in initial flow rates and reserves 2.5 to 7 times that of a vertical well drilled and produced on the same drilling unit.”
“In summary, with expected recoveries in excess of 50,000 barrels of oil per vertical well, at 3,000’, and only 108 Nisku wells drilled within the 1,000 square mile Kevin Sunburst Dome closure; the Program has exceptional potential. In addition, the application of horizontal and multistage fracturing techniques should increase the play’s economics significantly.”
ABOUT AXIOM OIL AND GAS CORP.:
Axiom Oil and Gas Corp. is an oil and gas exploration and development company, formed initially, to develop oil and gas leases in Toole County, MT. The Company provides investors with direct exposure to producing oil and natural gas interests with significantly lower production costs. With a strong management and operations team and low risk development drilling, the Company is building a solid base operation with stable cash flow to ensure corporate longevity and minimal dilution as it grows its shareholders’ value and by adding excellent oil and gas properties.
FORWARD LOOKING STATEMENT:
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect the Company's current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information included in this Press Release including such forward-looking statements.
Axiom Oil and Gas Corp.
1846 E. Innovation Park Dr.
Oro Valley, AZ 85755
Tel: +1 (303) 872-7814