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Attention Business Editors
Alberta Clipper Energy Inc. (ACN - TSX) Announces 2007 Capital Budget
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
CALGARY, Dec. 8 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper" or
"the Company") is pleased to announce that the Board of Directors has approved
a $60 million capital budget for 2007. The budget projects drilling 27 wells
(14.6 net) in the Company's three core operating areas. Of the $60 million,
approximately $42 million will be spent in Western Alberta, $16 million in
Northeast British Columbia and $2 million in Central Alberta. Over 90% of the
capital program will be invested in drilling and associated development
activities with 66% of the budget being allocated to light oil targets on the
Sylvan Lake Leduc play. Based on this capital program, the Company forecasts a
2007 exit rate of between 3,000 and 3,500 boe/d.
With Alberta Clipper having attained a 100% exploration success rate on
the Leduc light oil play in 2006, a significant proportion of the Company's
2007 capital program will be dedicated towards extending the play along the
Leduc Rimbey trend outside of the existing producing-area boundaries. Alberta
Clipper has budgeted to drill 10 Leduc exploratory wells in 2007 at working
interests of between 50 and 100%. In addition, 7 lower risk Leduc development
wells will be drilled over the course of the year as follow-ups to recent
discoveries made by the Company.
A total of 27 wells are planned for 2007, including 11 that are
classified as exploratory and 16 of a development nature. The $60 million
budget also anticipates the pre-investment of approximately $4 million on land
and seismic in the Company's core areas. The Company currently holds
approximately 230,000 acres of net undeveloped land and 3,100 square km of 3D
seismic data in its core operating areas.
Current production is 1,800 boe/d with an additional 250 boe/d that is
expected to be on production prior to year-end allowing the Company to attain
its 2006 exit rate target of 2,000 boe/d.
As a result of the year-round access now provided by the new road at
Trutch, Alberta Clipper has accelerated one well from its Q1 2007 drilling
program into the fourth quarter of 2006. The Company has drilled two wells
during the fourth quarter and is nearing total depth on a third at Trutch. The
first well tested at rates of up to 1.2 MMcf/d and the second well is being
prepared for completion and testing. Both wells are expected to be on-stream
prior to year-end bringing the total producing well count at Trutch to nine.
The well that is currently drilling and the final well to be drilled prior to
year-end are both expected to be on-stream prior to the end of the first
quarter of 2007 pending successful test results.
At Sylvan Lake, Alberta Clipper has also accelerated the drilling of a
100% Leduc location from the first quarter of 2007. The 6-15-37-5W5 well is
targeting a Leduc pinnacle reef and is expected to reach total depth prior to
the end of the year. In addition, a further Leduc well at 7-5-38-4W5 is
undergoing completion and testing operations and is expected to be producing
by the end of the year bringing the total number of new Leduc wells brought
on-stream in 2006 to eight. One final Leduc exploratory drilling location is
expected to spud in late December.
First quarter 2007 activity will include five Leduc locations at Sylvan
Lake and two drilling locations and two re-completions at Trutch targeting
Halfway gas. In addition, construction will begin on the Company's new 5,000
bopd battery at Sylvan Lake where the Company is near the limitations of the
existing battery. The new capacity will allow the Company to fully optimize
its existing wells and will provide processing capacity for future exploration
and development activity.
Alberta Clipper's 2007 capital program will continue to focus on its
light oil play at Sylvan Lake and its resource gas development project at
Trutch. The pre-investment made during 2006 in land, seismic and
infrastructure in these areas will allow the Company to allocate a larger
component of its total 2007 budget to drilling. The 2007 drilling program
exposes the Company to both multiple high-impact light-oil prospects, each
with the ability to have a material impact on the Company, and a predictable
gas development program that will provide an inventory of locations for many
years.
Alberta Clipper Energy Inc. is a publicly traded Canadian energy company
involved in the exploration, development and production of natural gas and
crude oil in western Canada.
Boe Presentation - Barrels of oil equivalent ("Boe") may be misleading,
particularly if used in isolation. A Boe conversion rate of 6 Mcf : 1 Bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead. All Boe
conversions in the report are derived by converting gas to oil at the ratio of
six thousand cubic feet of gas to one barrel of oil.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements including
expectations of future drilling, capital expenditures, facilities construction
and production. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results
to differ from those anticipated. These risks include, but are not limited to:
the risks associated with the oil and gas industry (e.g., operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), commodity price, price and exchange rate fluctuation and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. Additional
information on these and other factors that could affect Alberta Clipper's
operations or financial results are included in Alberta Clipper Energy's
reports on file with Canadian securities regulatory authorities.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Not for
distribution to U.S. newswire services or for dissemination in the United
States. Any failure to comply with this restriction may constitute a
violation of U.S. securities law.
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/For further information: Kel Johnston, President & C.E.O., Alberta
Clipper Energy Inc., Telephone: (403) 440-3474, Facsimile: (403) 440-3475,
Website: www.albertaclipperenergy.com/
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