(MENAFN- ProactiveInvestors - N.America) Tuscany Energy (CVE:TUS), which explores for, develops, and produces oil and gas, advanced to a record high after saying that a step out vertical well drilled for water disposal purposes at the company's 100 percent working interest Macklin property encountered nine metres of Dina oil pay.
Shares jumped to an all-time high of C$0.68 before paring gains to C$0.66, up 10 percent, at 1:55 p.m. in Toronto.
The 7-33-39-28W3 well was drilled to 1,011 metres as a potential Duperow water disposal well, and was located to also test a potential extension of the adjacent Dina oil field currently being developed by Tuscany, the Calgary, Alberta-based company said in a statement today.
Approximately 9 metres of 33 percent porous sand was encountered in the Dina, with log characteristics identical to presently producing wells in the field.
The well will be completed as a disposal well within the next month, enabling Tuscany to significantly increase its water handling capacity which will increase its oil production and allow the company to connect three currently shut-in wells.
Tuscany said that the significance of the Dina oil pay in the new well is that it could establish up to 14 additional un-booked development locations for horizontal drilling in the Dina and expand the Macklin pool to the north, all on Tuscany controlled 100 percent working interest lands.
Tuscany also said it has completed its previously announced program, drilling five horizontal heavy oil wells. Three of the wells are on production and the final two will be placed on stream next week. The company will update the market with estimated flow rates on the wells when they have been adequately tested.
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