UPDATE: Guardian Exploration Provides Update on Drilling of Horizontal Pekisko Well; Stocks Dip 20%
Guardian Exploration Inc. (GX.V) has finished drilling the farm-in well with Deckland Inc. in the Jenner area of Alberta, previously announced on November 30, 2012. Under the terms of the farmin agreement, the Company has earned a 50% working interest in the well. This agreement is pending TSX-Venture Exchange approval as it is "non-arms length".
The well reached a Total Measured Depth ("TMD") of 2,300m, of which 1,200m is a horizontal, open-hole completion through the targeted Pekisko formation. Initial analysis indicates that 70% of the horizontal section encountered hydrocarbons with high gas shows and visible oil. The well was initially planned to be drilled to a TMD of 1,800m but, due to the target formation continuing further south than initially expected, the well was drilled another 500m. No significant operational issues were encountered and all costs over the budgeted $900,000 were associated with the added length of the horizontal leg.
GX has dipped 20% to 2 cents in the afternoon trade but still above year low $0.005.
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