Angle Energy Inc. (Toronto Exchange: NGL) is providing an update on third quarter operational activities as well as a project update on the Harmattan Cardium play.

Harmattan Cardium

The Cardium play in Harmattan has provided stellar light oil growth for Angle since the initial well was drilled and completed with a slick water fracture in October 2011. Angle is currently using a type curve for the play, generated from industry results for slick water fractured Cardium wells, of 233 BOE/d (89% light oil & NGL and 11% gas) for the first three months of production, with expected ultimate recoveries of 220 MBOE per well actual IP three-month rates average 235 BOE/d (196 bbl/d, 7% gas) for the first 12 full horizontal wells drilled in the play, which validates the current type curve view. The total drilling inventory in the Cardium fairway between Garrington and Lochend is approximately 176 wells at a four well per section drilling density.

From the program start in late 2011, Angle has drilled 18 wells and completed a total of 17 wells to date, with 14 wells on production by the end of the third quarter. The remaining four wells will be brought on production in the month of October. The project is currently producing 1,100 bbl/d light oil with 600 bbl/d (stabilized IP30 productivity estimate, flush volumes would be higher) to tie in, from a start in October 2011 at zero production.

Currently, only 10% of the 176 well drilling inventory has been drilled, and reserves are largely unbooked. As at Dec. 31, 2011, proved plus probable reserves of only 2.4 MMBOE (81% oil) were recognized exclusively in the northern area of the play. The successful results in the step out areas south and west of the original producing wells has significantly de-risked the drilling inventory and will provide additional reserve bookings for 2012. Angle has plans to drill up to an additional two wells in the play in the fourth quarter, which will also de-risk additional lands and provide new reserve assignments. The cost to drill and complete the latest three wells in the play was $2.8 million per well.

Edson Cardium

Angle has participated in the drilling of four gross (1.1 net) non-operated wells in the third quarter in the Edson Cardium light oil play. The company also has an additional two gross (0.3 net) wells as potential drills for the remainder of the fourth quarter, taking the program to eight gross (1.8 net) wells total for 2012. Four wells are currently on production, with gross oil production of 375 bbl/d (net to Angle 92 bbl/d). Two of the wells have been on production for over 30 days, with IP 30 rates of over 120 bbl/d. These wells are showing stabilized production with continued clean up (oil rate increasing) post slick water fracture completions. The operators in the play have shown recent improvements in both drill cost and fracturing technique, with monobores reducing drill time by approximately three to four days.

Current slick water fracture applications have been employing additional stages (27 instead of the 17 previously being applied) with improved productivity achieved. The non-operated wells have provided information to de-risk Angle's 100% working interest Cardium rights offsetting the activity. The early results in Edson are encouraging and Angle sees a total drilling inventory in this play of 75 gross (45 net) unbooked locations. Prior to expected cost savings, the cost to drill and complete is approximately $3.5 million with expected risked recoveries of 175 MBOE per well.