Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

ZIMI LIMITED Capital/Financing Update 2009

Sep 14, 2009

66122_rns_2009-09-14_9795ec07-14a4-449a-be39-cda6323e1887.pdf

Capital/Financing Update

Open in viewer

Opens in your device viewer

==> picture [157 x 95] intentionally omitted <==

WHL Energy Ltd C/- Websters Solicitors ABN: 25 113 326 524

Level 11, 37 Bligh Street Sydney NSW 2000 Australia P: +61 2 9233 2688 F: +61 2 9233 3828 www.whlenergy.com

ASX/MEDIA RELEASE

Dated: WHN 15 September 09

Kansas Shallow Oil & Gas Discovery – Proven & Dependable Production.

-Significant shallow oil resources delineated with short term oil production potential -Reserves report confirms 110 bcf natural gas recoverable

-In excess of 5000 acres of good quality oil reservoirs that have produced over 1.5mmbbl historically

-Continuous re-completion and land acquisition activity for the balance of 2009

An operational update regarding the Company’s South East Kansas oil and gas projects follows:

Local Shallow Oil Resources –

Concurrent to completing its geological and reservoir due diligence on the “Home Run” Kansas CBM project, WHL Energy has further delineated significant oil reservoirs that have been over-looked and prematurely shut-in by previous operators.

The project areas are located on the Missouri side of the prolific Cherokee basin, known for shallow oil saturated sandstones. For optimum recovery the projects require waterflooding in order to drive the hydrocarbons from the reservoir into the production well bore. The water is introduced by a number of injector wells drilled within the project area on a “five spot pattern” with four production wells for each injector well. The eastern side of the Cherokee Basin is estimated to contain between 1.8 and 8 billion barrels of oil in place based on published reports from the United States Geological Survey (“USGS”) and Missouri Department of Natural Resources survey estimates.

Following analysis of the historical data, WHL Energy now have an increased understanding of the characteristics of the project acreage which has demonstrated that there are several oil reservoirs present with much of the previous infrastructure intact. It is expected that WHL will initiate commercial pilots in the area.

About the Union Town and Girard Project-

The Uniontown and Girard project covers mineral leases over approximately 45,000 gross acres in Bourbon and Cherokee County, Kansas within the mature Cherokee Basin. The current target for development is the shallow gas (75-300 m) potential of the area, although the leases are also held for potential development of coal-bed methane and conventional oil and gas reserves. A preliminary reserve

==> picture [157 x 95] intentionally omitted <==

WHL Energy Ltd C/- Websters Solicitors ABN: 25 113 326 524 Level 11, 37 Bligh Street Sydney NSW 2000 Australia P: +61 2 9233 2688 F: +61 2 9233 3828 www.whlenergy.com

estimate for the project has been prepared by Questa Engineering Corporation of Golden, Colorado and is available on the Jayhawk Energy website www.jayhawkenergy.com.

There are in excess of 70 wells available for recompletion. With the current low gas price, only 5 wells are currently producing with stabilized production of in excess of 108 mcf/day. WHL Energy Ltd. has successfully piloted 5 wells with proprietary technologies including the Short Radius Stimulation (SRS) and propellant gun technologies with several wells in order to demonstrate via low cost completion techniques (sub $10 K USD per well), the wells can be rapidly brought on line economically.

WHL CEO Dr David Kahn states “we are extremely pleased by this outcome, this discovery provides a significant reserve base to WHL Energy that was not expected during our initial due diligence phase in Kansas. This has provided the company the ability to take advantage of both rising oil and gas prices, whilst still staying within our stated goals of acquiring low cost, near term production opportunities in the US oil and gas market”

About WHL Energy Ltd:

WHL Energy Limited is an energy company engaged in the acquisition and development of properties for production of crude oil and natural gas in the continental USA. The Company focuses on properties that will be able to build value for shareholders and produce solid revenues and profitability. The company has recently focused on Cherokee Basin, Kansas, and Appalachian Basin, Kentucky/Tennessee.

Yours Faithfully,

Ian Mitchell Company Secretary WHL Energy Limited