Welcome to Tuscany Energy Ltd.
Tuscany Energy Ltd. is an oil-focused junior that plans to grow organically to 1,000 boepd by 2012. The company´s key property is an Evesham Dina heavy oil pool that it anticipates developing through horizontal drilling funded primarily from cash flow; exploration assets include lands prospective for heavy oil and Birdbear light oil. It has operations and potential in three core areas in Alberta and Saskatchewan.
Wildwood, Alberta
Producing Pekisko Oil well (30 % W. I.)
Western Saskatchewan
Oil potential offsetting active Bird Bear drilling Potential Shaunavon area where vertical well has been drilled. Other land acquisitions are being made during 2010.
Evesham, Macklin Saskatchewan
14 Sparky oil wells (100% W. I.), a Dina oil pool – large reserve potential,
3 wells drilled and producing (60% W. I. with Husky as partner) at 100 m spacing. The next two wells will be at 50 m spacing with the potential of pool rising to over 30 development wells. 1 water disposal well (100% W.I.), deeper Bird Bear potential. Developing Core area.
In 2009, Tuscany strengthened the Balance Sheet by reducing its net debt by completing a Rights Offering; - $0.5 million and completing the merger with Goldmark Minerals Ltd. - $1.3 million.
The company is focused on conventional heavy and light oil assets in Saskatchewan.
The company fundamentals are solid as it exited 2009 with a net debt of $2.7mm, underpinned by a reserve value of $17.2mm (a 57% increase from 2008). Booked reserves of 741mboe include only 7 future locations at Evesham, but management estimates from vertical well control and 3D seismic coverage that more than 60 horizontal locations could be possible (on 50m spacing).
The Company has embarked on its growth development program as its current production of 150 boepd (85% oil) has been supplemented by the third Evesham horizontal well and will be followed by at least two more horizontal wells in the second half of 2010 (on-stream early 2011). These next two wells will be drilled with a 50 meter spacing.
In addition to the current projects Tuscany will continue to explore and develop new oil exploration plays in both Alberta and Saskatchewan.
Tuscany’s longer term goal is to become a 1000 plus BOEPD operator and will use a selective and opportunistic approach to build the portfolio of properties in Canada.