/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
CALGARY, May 13, 2013 /CNW/ - Butte Energy Inc. (the "Company") is
pleased to provide an operational update. The Chigwell Viking
4-35-42-26 W4 well was shut-in effective January 2012 pending a hearing
and ruling on a Special Well Holding Application filed on December 21,
2011 with the Energy Resources Conservation Board (the "ERCB"). Such
hearing was necessitated as a result of an objection by Glencoe
Resources Ltd., operator of the immediately adjacent CO2 enhanced oil
recovery ("EOR") scheme. The Company has received notification from the
ERCB that its Special Well Holding Application has been denied. The
4-35 well will continue to be shut-in until the Company applies for and
obtains approval from the ERCB for its independent EOR scheme.
While denying the Company's Holding Application, the ERCB's ruling
confirmed key elements of the Company's Holding Application that are
worthy of note. The Company has always contended that its Section 35
lands are being influenced and inequitably drained by Glencoe's EOR
scheme, to which the ERCB noted in its ruling, "…the examiners accept
that C02 injection at Glencoe's 14-26 well has swept some oil from
Section 35 to Glencoe's 8-34 well."
The Company, in response to this significant drainage, is reviewing and
weighing all options, including an independent EOR scheme and any civil
actions required to aggressively protect its reserves and to recover
the reserves, swept to date, from its Section 35 lands.
In addition, approval from the ERCB to place the PEOC HZ Plain 3-4-55-12
W4 well on production has been obtained. The well is awaiting tie-in
prior to being placed on production.
Forward looking information
This news release may contain certain forward-looking information as
defined under applicable Canadian securities legislation, that are not
based on historical fact, including without limitation statements
containing the words "believes", "anticipates", "plans", "intends",
"will", "should", "expects", "continue", "estimate", "forecasts" and
other similar expressions. In particular, this news release includes
forward looking information relating to the potential options in
respect of the Company's Section 35 lands and approval of the Company's
PEOC HX Plain 3-4-55-12 W4 well. Our actual results, events or
developments could be materially different from those expressed or
implied by these forward-looking statements. We can give no assurance
that any of the events or expectations will occur or be realized. By
their nature, forward-looking statements are subject to numerous
assumptions and risk factors including but not limited to those
assumptions and risk factors discussed in our most recent MD&A which is
incorporated herein by reference and other documents we file from time
to time with securities regulatory authorities, which are available
through SEDAR at www.sedar.com The forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and are made as of the
date hereof. We disclaim any intention and have no obligation or
responsibility, except as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE: Butte Energy Inc.
For further information:
Butte Energy Inc.
Vic Redekop, Chairman
Tel: (403) 541-5310