Welcome to Tuscany Energy Ltd.
Tuscany Energy Ltd. is an oil-focused junior that plans to grow organically to 1,000 boepd by the end of 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.
Evesham, Macklin Saskatchewan
14 Sparky oil wells (100% W. I.), a Dina oil pool – large reserve potential, drilling up to 12 wells in 2011, commencing early June, 3 wells drilled and producing (60% W. I. with Husky as partner) at 100 m spacing. 2 wells at 50 m spacing. Total of 5 wells now licences will be at 50 m spacing, with the potential of pool rising to over 70 development wells. 1 water disposal well (100% W.I.), deeper Bird Bear potential. Developing Core area.
Western Saskatchewan and Lloydminster
Tuscany has participated for a 30% interest in the acquisition of 15,110 (4,530 net) acres which cover 13 separate horizontal prospects. Tuscany has two prospects on the Bird Bear oil play, an Shaunavon oil play in southwest Saskatchewan, and several Lloydminster oil prospects in Alberta.
Current
Tuscany Energy Ltd. (“Tuscany”) is an oil-focused junior that is well positioned with strong fundamentals, healthy financing and a repeatable heavy oil development play.
The combined Sharon Tuscany entity has total proved plus probable reserves of approximately 1.34 mmboe (80% oil), current estimated production of 250 BOE/d, approximately 17,000 net acres of undeveloped land, and a sound balance sheet with:
- marketable securities of $4.0 million
- working capital of approximately $4.2 million
- unused bank line of $4.6 million
With the resulting strong balance sheet, the combined entity will be able to accelerate Tuscany’s drilling program significantly.
There are now 5 Dina horizontal wells producing with total gross production of approximately 170 bopd. Tuscany has a 60% working interest in the Evesham heavy oil pool. During the rest of 2011, Tuscany plans to drill up to 12 additional wells in the Evesham Dina heavy oil pool which would triple the number of producing wells. Each Evesham horizontal well is estimated to cost $1 million, including down hole completion and surface equipment (no frac required).
The Evesham horizontal heavy oil wells produce a satisfactory ROI and according to an independent engineering evaluation and a contingent resource study there are over 70 additional wells possible at the Evesham field.
BEYOND EVESHAM – GROWING OIL PROSPECT INVENTORY
Since the beginning of 2010, Tuscany has participated for a 30% interest in the acquisition of 15,110 (4,530 net) acres which cover 13 separate horizontal prospects. Tuscany has two prospects on the Bird Bear oil play, an additional Dina oil play in the Macklin area near Evesham, a Shaunavon oil play in southwest Saskatchewan, and several Lloydminster oil prospects in Alberta.