TORONTO, ONTARIO-(Jan. 28, 2010) - New Sage Energy Corp (TSX VENTURE:NSG) ("New Sage") is pleased to announce an update on the Leger #1 well that was drilled and completed in the Lafourche Crossing Field, Louisiana in October 2009. Leger #1 has been producing oil and gas since December 12, 2009 and early production results show an average flow rate of 1.08 mmcf/day natural gas and 23 bbls/day of 52 degrees API (which is approximately 107 barrels of oil equivalent per day "Boe/d"), after a 27 day initial production history. The well reached a total depth of 10,648' and was completed between 10,614' and 10,643'.
There were up to nine potential oil and gas productive zones identified in the Leger #1 well; three to five zones were anticipated prior to drilling. The well targeted five sands; 9850', 9900', 10100', 10180' and 10300' that are known producing sands within the Lafourche Crossing Field. The Leger #1 drill location is located on the down-thrown side of a listric growth fault where favorable gas production characteristics have historically been encountered. Proximity to this style of fault, as observed for sands located at depth for this development well, increases the likelihood to encounter additional oil and gas reservoirs.
Sidewall core analysis results indicate that these nine sands provide a total of 45' net pay with good reservoir quality, with an additional 24' of potential net pay and 14' of possible pay. Leger #1 well has 15' of section within the 9850' sands to be perforated with the lower portion of this reservoir considered to have good reserve potential. Sidewall core analysis confirms that the 8100', 9850', 10100' and 10375' sands all have good reservoir potential. New Sage holds a 5% working interest in the J. Leger #1 well.
About New Sage
New Sage is a Canadian oil and gas exploration and development company with a focus on opportunities in South America and the US Gulf States region.
Forward-Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by New Sage. The forward-looking statements or information contained in this news release are made as of the date hereof and New Sage does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The securities of New Sage being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
New Sage Energy Corp.
Eric Fredrickson
(416) 309-4320
info@newsage.com
