Nextraction Energy Corporation announced its financial and operational results for the three and nine months ended September 30, 2010. All amounts are reported in Canadian dollars unless otherwise noted.

Q3 Highlights

  • Established production at its 14,888 foot deep Noble 6-24 well on the Pinedale Anticline by fracing and completing the lower productive intervals. The lower zones of the well flowed 50.62 million cubic feet of gas (MMCFG) and 1,278 barrels of condensate with the majority of the production from July and August.
  • Mountain Minerals #5 well in the Appalachian Basin had an initial flow rate of 45 BOE/d (270 MCFG/d) at the depth of 2,050 feet and proved the Chattanooga shale is capable of production from a vertical well, an important first step in proving the viability of the property.
  • The Company generated oil and gas gross revenues of approximately US$358,000 in its first quarter of production despite the price of natural gas averaging under US$3.80 per MCFG and intermittent production from the completed wells while completion operations were underway. Liquids rich gas increased revenue by 25-40% over the posted the price.
  • The Company raised $7 million over the past 12 months and invested it through the drill bit generating value and organic growth.

Subsequent to the Quarter:

  • The Company shareholders exercised 3,458,713 warrants generating gross proceeds to the Company of $2,248,163.
  • The Company commenced permitting a 2-D seismic program in the Pinedale anticline area and exercised its option to drill a second well on the same terms as the Noble 6-24 well. The second well will commence in Q1 2011.
  • The Company finalized its geological evaluation of the Appalachian Basin project and has defined its proposed development strategy for the Chattanooga shale; we are re-entering and completing 2 wells before year end using a propellant frac technique and plans to drill a horizontal well in Q1 2011.

About Nextraction Energy Corp.

Nextraction Energy Corp. is a Canadian junior oil and gas company engaged in the exploration and development of oil and gas resources in North America. Nextraction is headquartered in Vancouver, BC, Canada, with an operations office in Golden, Colorado.