CALGARY, Jan. 27 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company") (TSX: WAV) is pleased to provide initial flow test information from its first horizontal multi-frac well at its wholly-owned Doig/Montney gas resource property in Fireweed, British Columbia.

The well was fractured with six staged treatments and opened to flow on cleanup for a 50 hour period. For the last 10 hours of cleanup testing, field measurements recorded that the well flowed at a rate of approximately 10 mmcf/d at nine MPa (1,300 psia) flowing tubing head pressure. The gas included approximately six percent hydrogen sulfide and five percent carbon dioxide. In addition, the well was producing approximately 300 bbls/d of natural gas liquids.

The first portion of the test was flared, with the last seven hours of the test being flowed in-line and sent through Breaker's facility to sales. As a result of the high rates and flowing pressures of this new well, Breaker has undertaken facility modifications to enhance the production capability from the existing wells and the new well. These modifications are expected to be completed by the end of the first quarter. Production at Fireweed should initially exceed 1,500 boe/d via this high impact result, up from approximately 750 boe/d prior to the drilling of this well. Breaker expects to spud its second Fireweed horizontal multi-frac well before the end of January.

The initial flow test results exceed the Company's expectations. Breaker will closely monitor the well's production performance in order to assist in formulating the production type curve for the pool. Breaker will use this type well information to assist in forecasting future production performance for the field, and ultimately optimal economic well spacing on full development.

This success confirms the potential of the Fireweed high rate, liquids rich resource play. Currently Breaker has identified 15 additional drilling locations at Fireweed and the Company's horizontal multi-frac resource play inventory is now in excess of 100 potential new locations. The resource play areas include Fireweed, Irricana light oil, and Provost sweet gas.

Breaker Energy Ltd.