MONTREAL, QUEBEC--(Marketwire - Dec. 16, 2010) - Gastem (TSX VENTURE:GMR) is pleased to announce that the Ross No.1 vertical well was recently completed in the Marcellus Shale. Two different zones of interest in the Marcellus Shale, namely the Chittenango and the Union Springs were fracture stimulated and both fracs were successful. The operation produced an IP of 200 mcfd and it is currently testing at 150mcfd after 4 weeks of extended flow. The completion was executed by BJ Services.
Gastem has now fracced three potential productive shale intervals in the Ross No.1 well in Otsego County, New York. The operations team fracced the Utica shale in November 2009 and tested that interval in excess of 100 mcfd using a fluid volume under the existing SGEIS guidelines with a maximum volume of 80,000 gallons.
"We see some excellent productive indications on Gastem's first Marcellus frac in the region with a very limited frac volume," stated Gastem's Chairman and CEO, Mr. Raymond Savoie. "The combined economics of the multi-layer targets (Utica, Oneida and Marcellus) will provide development opportunities until the NYSDEC completes their review process for horizontal shale wells now scheduled for release on June 1st 2011."
Gastem is currently completing a seismic program on existing leased property and plans to initiate development wells targeting "local gas for local use" in the area by mid 2011. Gastem is operator of the project and has an 80% working interest in 33,000 acres in this area.
Gastem is an independent oil and gas exploration and development company based in Montreal. The company holds exploration and storage permits and rights in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as rights and interests in New York State and Virginia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.