Exceptional Potential

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.”

EXCEPTIONAL POTENTIAL

“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.

Corporate Headquarters
Axiom Oil and Gas Corp.
1846 E. Innovation Park Dr.
Oro Valley, AZ 85755
Tel: +1 (303) 872-7814
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
www.axiomoil.com

Axiom Logo

Disclaimer

All rights reserved. Information contained on this website is provided solely for convenience and the documents contained herein are time sensitive. Therefore, events and changes may be made rendering any estimates, data and assertions obsolete. The information is provided without warranty of any kind and Axiom Oil & Gas Corp. its employees and representatives expressly disclaim all liability from any costs, damages or consequences of any type that may result form the reliance on information obtained from this internet website or any other websites hereto linked.

Web Site Information

This web site is the official site of Axiom Oil and Gas Corp ("Axiom"). The information provided to users of this website is for informational purposes only. Users should not rely on information contained in this website for any purpose other than for gaining general knowledge of Axiom. This information is not intended to be a comprehensive review of all matters and developments concerning Axiom and Axiom assumes no responsibility for its completeness, accuracy and currency.

The information provided through this website is intended solely for the general knowledge of visitors to the website and does not constitute an offer or a solicitation of an offer for the purchase or sale of any shares or other securities of Axiom. There are substantial risks associated with investing in development stage exploration companies. Potential investors should seek advice from a qualified financial dealer prior to investing in Axiom. No securities commission or similar authority has in any way passed on any of the information contained in this website.

Forward-Looking Statements

This web site contains "forward-looking statements", as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. The user can identify these forward-looking statements by forward-looking words such as "may," "will," "expect," "potential," "anticipate," "forecast," "believe," "estimate," "project," "plan," "continue" or similar words. The user should read statements that contain these words carefully because they discuss future expectations, contain projections of future results of operations or of financial condition, or state other forward-looking information. Forward-looking statements include, but are not limited to, statements regarding potential reserves, exploration results, development or production programs, and future plans and objectives of Axiom. The risk factors listed in our disclosure documents and the cautionary language on this web site provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations and projections described by Axiom in its forward-looking statements. Actual results relating to, among other things, reserves, results of exploration, capital costs and production costs could differ materially from those currently anticipated in such statements. Factors affecting forward-looking statements include: the speculative nature of exploration and development activities; the productivity of Axiom's properties; changes in the operating costs; changes in economic conditions and conditions in the resource, foreign exchange and other financial markets; changes of the interest rates on borrowings; hedging activities; changes in the prices for oil and gas; changes in the investments and exploration expenditure levels; litigation; legislation; environmental, judicial, regulatory, political and competitive developments in areas in which Axiom operates; technological, mechanical and operational difficulties encountered in connection with Axiom's exploration and development activities; and labour relation matters and costs. The user should refer to the risk disclosures set out in the periodic reports and other disclosure documents filed by Axiom from time to time with the Securities and Exchange Commission and other regulatory authorities.

Disclaimer of Liability

By using this website, the user agrees that Axiom will not be liable for any injuries, losses, expenses or damages (including direct or indirect, special or consequential, and loss of profits, opportunities or information) arising from any inaccuracy or omission in information contained in this website or the failure to keep such information current; the use of or reliance on such information; the use of any third party web sites linked to this web site; any Internet software used in connection with this web site or computer viruses or other destructive programs encountered as a result of using this web site; and any other matter connected with this web site, even if Axiom is made aware of the possibility of such claims, damages or losses.

Where You Can Find Further Information

We encourage visitors to our website to also read the information available at the website of the Securities and Exchange Commission (SEC) at: http://www.sec.gov. Readers can review our public filings at the SEC's EDGAR page which can be accessed via our ‘Investors page’ of this website. In addition, the Financial Industry Regulatory Authority (FINRA) has published information on how to invest carefully at its web site.

THE INFORMATION ON THIS WEB SITE IS PROVIDED FOR YOUR REVIEW IN ACCORDANCE WITH NOTICES, TERMS AND CONDITIONS SET FORTH HEREIN. THE INFORMATION ON THIS WEB SITE DOES NOT NECESSARILY REFLECT THE OPINIONS OF NORSTRA OR ANY OF ITS AFFILIATES OR AGENTS. THE INFORMATION IS NOT GUARANTEED OR REPRESENTED TO BE COMPLETE, CORRECT OR UP-TO-DATE. YOU MAY NOT ACT OR RELY ON ANY INFORMATION ON THIS WEB SITE AND YOU PARTICULARLY SHOULD NOT MAKE ANY INVESTMENT DECISIONS BASED ON ANY INFORMATION ON THIS WEB SITE. YOU MUST INDEPENDENTLY VERIFY THE ACCURACY OF ALL SUCH INFORMATION BEFORE ACTING OR RELYING THEREON OR MAKING ANY INVESTMENT DECISIONS IN CONNECTION THEREWITH. THE INFORMATION CONTAINED IN THIS WEB SITE MAY BE CHANGED FROM TIME TO TIME WITHOUT NOTICE.