VANCOUVER, Oct. 24 /PRNewswire-FirstCall/ -- Norwood Resources Ltd. (the "Company") announces that testing of the Maderas Negras and San Bartolo wells in Nicaragua was terminated on October 23, 2008. The Company reports that the testing program recovered noncommercial flows of oil in both wells. Tests were impeded by various problems and inaccurate identification of moveable oil from well logs. The Company plans to reinterpret logs in light of data from the testing to pursue those zones where oil was recovered during swabbing and while drilling. The Company is currently planning a twin to the San Bartolo well that will likely be spudded in late Q4/early Q1 2009.
At the Maderas Negras well, 170' of Brito formation was tested in 6 separate intervals. The 3 upper intervals, 3460'-3480' 3510'-3530' 3570'-3590' yielded non-commercial quantities of oil. Testing comprised of perforating, pressure recording and swabbing operations. Unmeasured quantities of gas also accompanied swabbing operations. In general the Maderas Negras well appears to have lower porosity and less permeability than either the San Bartolo or Las Mesas wells.
At San Bartolo, 178' of Upper Brito formation was tested in 5 intervals. The tested zones included the 5915'-5950' zone, which yielded 60 bbls of 39 API oil over a six hour period during initial re-entry and swabbing. Testing and swabbing operations however yielded approximately 350 bbl of brine with oil cuts varying from trace to 30%. It is believed that poor cement in the annulus failed to seal intended test zones properly and allowed communication with lower perforated zones from last year's testing program.
The Company is waiting to receive final reports and an explanation from Schlumberger, who conducted the program. This information should include a post-test report detailing testing results, as well as pre-test/post-test log re-evaluations. An evaluation of quality control standards during mobilization and conduct of operations is also expected.
A re-evaluation of well logs with information obtained in the testing program is also being initiated to identify and isolate zones of moveable oil, this is being conducted by independent petrophysical experts in Calgary. Upon completion of a full analysis, the Company will consider twinning the San Bartolo well to test these zones, as well as the Masachapa formation, in the upper 3000 feet, which was not tested as part of the recently concluded work. Further results and plans will be reported when available.
ON BEHALF OF THE BOARD OF DIRECTORS OF NORWOOD RESOURCES LTD. "Raymond Cahill" Raymond Cahill President & CEO WE SEEK SAFE HARBOUR This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgment, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE
