CALGARY, Nov. 21, 2011 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") In light of the Corporation's announcement on November 17th, 2011, in respect to terminating its obligations under the Letter of
Intent with Shorthorn Exploration Ltd. ("Shorthorn") dated September
15, 2011. The Corporation will continue to focus on its current
portfolio of prospects in the Hamburg, Jumpbush and Ferrybank areas of
Alberta. Additionally, the Corporation intends to fulfill its
obligation under the farmin agreement with Shorthorn and evaluate
further development drilling opportunities on the earned land.
The current drilling portfolio has a capital program in excess of seven
million dollars based on current drilling cost estimates. Carmen is
concluding evaluations of its current drilling portfolio in advance of
finalizing financing efforts to adequately fund its capital program.
The Corporation is also pleased to announce the following operational
The Sylvan Lake 102/14-7-38-3w5 Leduc well is on production as of
November 7, 2011. Plans are being initiated to put this well on
artificial lift. Carmen has a 15% working interest in the well. Carmen
will continue to evaluate the well as rates stabilize and examine the
merit of offset targets, in conjunction with its partners.
The Sylvan Lake 12-22-38-4w5 Leduc well is currently being completed and
Initial analysis of well logs and samples from the Viking-Kinsella
Horizontal Glauconitic location indicate a successful penetration of
the Glauconitic formation with the horizontal leg intersecting
approximately 900 meters of the Glauconitic zone. Stimulation
operations are expected shortly followed by production testing.
About Carmen Energy Inc.: Carmen is based in Calgary, Alberta and a publicly traded oil and gas
exploration and production company. The focus is on exploration and
development of Western Canadian Sedimentary Basin based oil and gas
properties. The current projects are the Jumpbush properties in south
eastern Alberta, the Ferrybank properties in central Alberta, the
Sylvan Lake area properties in Southern Alberta and the Hamburg
properties in northern western Alberta.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information
includes, among other things, the earning of the working interest,
completions of the Sylvan Lake 12-22-38-4w5 and Viking-Kinsella
Horizontal Glauconitic location and information with respect to the
Corporation's beliefs, plans, expectations, anticipations, estimates
and intentions and the activities of the Corporation. The words "may",
"could", "should", "would", "suspect", "outlook", "believe",
"anticipate", "estimate", "expect", "intend", "plan", "target" and
similar words and expressions are used to identify forward-looking
information. . The forward-looking information in this news release describes the
Corporation's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or events.
Material factors which could cause actual results or events to differ
materially from such forward-looking information include, among others,
the risks associated with the oil and gas industry in general, risks
arising from general economic conditions and adverse industry events,
risks arising from operations generally, reliance on contractual rights
such as licences and leases in the conduct of its business, the
uncertainty of reserve and resource estimates; the uncertainty of
estimates and projections relating to reserves, resources, production,
costs and expenses; reliance on third parties, reliance on key
personnel, possible failure of the business model or business plan or
the inability to implement the business model or business plan as
planned, competition, environmental matters, and insurance or lack
thereof; failure to realize the anticipated benefits of acquisitions
including the Acquisition; ability to access sufficient capital from
internal and external sources; changes in legislation, including but
not limited to tax laws, royalties and environmental regulations.
The Corporation cautions that the foregoing list of material factors is
not exhaustive. When relying on the Corporation's forward-looking
information to make decisions, investors and others should carefully
consider the foregoing factors and other uncertainties and potential
events. The Corporation has assumed a certain progression, which may
not be realized. It has also assumed that the material factors
referred to in the previous paragraph will not cause such
forward-looking information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is
subject to change and there can be no assurance that such assumptions
will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE
REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS
NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.
READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER
DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO
UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
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 press
SOURCE Carmen Energy Inc
For further information:
President and Chief Executive Officer