CJS Coiled Tubing Supply Ltd. (“CJS”), Lloydminster, Alberta and Source Rock Energy Partners ("SREP"), Calgary, Alberta are pleased to announce the successful field testing of their JetPakTM tool in Oklahoma horizontal CBM wells.

Scott Kiser of CJS said “During December, CJS and SREP deployed a JetPakTM modified jet pump system coupled with the FlatPakTM coiled tubing conveyance system to successfully cleanout customer horizontal CBM wells in Oklahoma. These low reservoir pressure wells had historically proven difficult to cleanout with techniques such as underbalanced foaming operations only providing marginal performance improvements…. Based on our results with this multi well cleanout project, the JetPakTM cleanout technology is a viable solution for these horizontal wells, providing substantial improvement in post cleanout raw gas production.”

“Using a combination of JetPakTM vacuuming and jetting, we were able to move through the several coal fine bridges in these horizontal laterals, ultimately penetrating out to the toe of these 2,000 foot horizontal laterals. Following these cleanouts, certain of the wells saw increases in post cleanout raw gas production between 50 to 80 MCF/day (as much as a 260% increase in one case)” said Kiser. “We are very pleased with these results as increases of this magnitude evidence the efficiency of our cleanout technology. These significant production improvements coupled with reasonable service costs ensure rapid client paybacks of future cleanout operations” Kiser commented.

CJS and SREP are currently working on the second generation of their JetPakTM cleanout tool. This tool will feature multiple improvements including a provision for rear jetting so that when working in laterals with heavy solids matter, the tool can be easily removed from the well.

Aside from these cleanouts performed in Oklahoma, CJS and SREP are currently talking to operators in the San Juan basin. “With the JetPakTM tool now proven in vertical and horizontal wells in North America, this technology provides a viable new option for cleaning out low pressure and high solids wells. Once the second generation of the JetPak cleanout tool is complete, we intend to prove the tool in unconsolidated heavy oil wells in areas such as Lloydminster, Alberta,” says Kiser.

Kiser suggests, “With approximately 250,000 feet of FlatPakTM now deployed and a new bonding process in place to prevent gas migration up the FlatPakTM in high pressure situations, the CJS FlatPakTM system will be a viable solution for an increasing number of wells in North America. Coupled with the JetPakTM jet pump, FlatPakTM may greatly increase the economic viability of certain North American horizontal CBM wells.”

For further information contact, Scott Kiser – Business Development Advisor, CJS Coiled Tubing Supply Ltd. Cell: 403-463-4740 or email Scott at scott@cjsflatpak.ca.

December 2009