Passport Energy Ltd ( PPO )

Written by Editor

Monday, 11 June 2012 09:37

Passport Energy Announces Spud of its First Operated Well in the Hardy Bakken Field, Saskatchewan

Passport Energy Ltd. (PPO - TSX Venture, PPO - CNSX),("Passport" or the "Company") is pleased to announce the commencement of drilling operations on its first operated Bakken horizontal well in the Hardy Bakken field of Southeast Saskatchewan, along with its partner American Eagle Energy Corporation ("American Eagle"). Passport has engaged Precision Drilling Rig 120 to drill this well.

Following drilling operations, a multi-stage fracture completion program will be performed on the well. The well will then be placed on production and, after a period of optimization, Passport is looking forward to releasing the results as the Company's first operated production.

Under the terms of a farm-in agreement with a large, independent, Canadian oil and gas producer, Passport, as operator, and its partner, American Eagle, will pay 100% (50% net to Passport) of the drilling and completion costs of the Bakken horizontal well to earn a 100% working interest (50% net to Passport) in the spacing unit until payout of the well, subject to a convertible gross overriding royalty and a 65% working interest (32.5% net to Passport) in 5 sections of land. After payout, Passport and its partner will retain a 65% working interest in the well. This is the first of two horizontal Bakken commitment wells to be drilled in 2012 as the first stage of earning according to the terms of the agreement.

Passport has already completed the terms of another farm-in agreement in the area with the drilling and completion of two additional Bakken horizontal wells. The first of these two wells came on production at 164 barrels of oil and day and the second is currently undergoing its clean-up phase and optimization period with results expected in Q3 2012.

The Company is a junior natural resource exploration company focused on the acquisition, exploration, and development of economically viable natural resources, with a focus on Bakken oil projects.

The Company trades on the TSX Venture Exchange and the CNSX under the trading symbol "PPO".

The CNSX does not accept responsibility for the adequacy or accuracy of this news release.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

For more information, please refer to the Company's public documents available on SEDAR (www.sedar.com).

For further information contact:

Bruce Murray
Chairman, President, & CEO
Tel: 403-930-4061
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website: www.passportenergy.com