Contact Exploration Confirms Repeatability of Kakwa Liquids-Rich Montney Development with Second Successful Well

Nov 5, 2012

CALGARY, Nov. 5, 2012 /CNW/ – Contact Exploration Inc. (“Contact” or the “Company”) (TSX-V: CEX) is pleased to announce that the second Contact-operated horizontal Montney well (the “14-30 Well”) has been successfully completed with a 14 stage water-based nitrogen foam frac. The well was flowed for 96 hours against anticipated gathering system pressure of approximately 1,100psi. During the final 24 hours of flow-back the well averaged gross production rates of 974 bbl/d condensate and 4,970 mcf/d gas, being 1,803 boe/d combined (244 bbl/d and 1,243 mcf/d, or 450 boe/d combined, net to Contact). An additional 4 hour flow test was subsequently conducted to provide insight into the free-flowing initial deliverability of the well, against a final wellhead pressure of 360 psi, which test resulted in gross rates of 1,324 bbl/d condensate and 6,423 mcf/d gas, being 2,394 boe/d combined. The 14-30 Well was drilled ahead of schedule and under budget and completion operations have remained on budget.

The successful drilling and completion of the 14-30 Well confirms that Contact’s Kakwa lands are in the heart of the liquids-rich Montney trend, validating the repeatability of this prolific play. Steve Harding, President and CEO of Contact, commented, “Condensate rates from the 14-30 Well are right in line with our expectations given that both the horizontal length of 14-30 Well and its 24 hour production test volumes are approximately 85% of the horizontal length and test rates from our first well at 13-17. However, the 14-30 Well has surpassed our expectations for overall condensate production, having flowed more condensate in its 96 hour production test than did the 13-17 well and demonstrating free-flowing well head condensate yields of 200 bbls/mmcf. The condensate yields from the 14-30 Well will surely enhance the economic returns from this already strongly commercial project.”

http://www.contactexp.com/Press_Release.html