CALGARY, Feb. 2, 2012 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") is pleased to announce that it has spud a well in its Hamburg area of
Alberta. Management of the Corporation expects drilling to take up to
thirty-five days from the date of spud to reach contract depth and to
review well logs.
Additionally, Petrus Resources Ltd. ("Petrus"), a privately owned energy
company based in Calgary, Alberta is participating in the well and has
the right to earn a 45% working interest in two sections of land in the
Hamburg area of Alberta. Petrus is required to contribute 45% of the
costs to drill to the contract depth, abandon, cap or complete, equip
and tie-in the first option well. The working interest is subject to
the same non-convertible overriding royalty calculated on 100% of
production of 1/15 (min. 5/10% and max 15/20%) on crude and 15/20% on
all other petroleum substances that Carmen is subject to and payable to
the original party whose property Carmen's farmin is with (as
previously disclosed in a press release of the Corporation dated
December 9, 2011) and subject to Crown Royalties.
The Corporation's Sylvan Lake 102/14-7-38-3w5 Leduc well has been on
production since November 7, 2011, without artificial lift. The first
thirty days of production averaged 35 barrels of oil equivalent
("BOE/d") per day consisting of 5 barrels of oil per day, 12 barrels of
natural gas liquids per day and 108 Mcf/day net to the Corporation.
Plans are being initiated to put the well on artificial lift. Carmen
has a 15% working interest in the well. Carmen will provide a
production update upon receipt of stabilized rates subsequent to
implementation of artificial lift.
The Sylvan Lake 12-22-38-4w5 Leduc well has been completed and tested at
noncommercial rates and is standing awaiting further evaluation.
Production at the Jumpbush area of Alberta well which Carmen owns a
37.5% working interest has maintained stable production rates of 8
BOE/d (net) comprised of 5 barrels of oil per day and 18 Mcf/day.
The Corporation is also pleased to announce the implementation of an
Executive Committee comprised of three members of the Board of
Directors being Randy Harrison, Archie Nesbitt and Gerald Facciani. The
role of the Executive Committee will be to facilitate financings,
negotiate and review corporate contracts. In conjunction with the
implementation of the Executive Committee, Brian Doherty will
relinquish the title of Chief Executive Officer in order to focus on
his duties as President and Director of the Corporation.
Carmen also announces that Grant MacKenzie, a partner at Burnet,
Duckworth and Palmer LLP has assumed the position of Corporate
Secretary and General Counsel for the Corporation effective
Furthermore, the Corporation announces that a total of 950,000 stock
options have been granted to the directors, and officers of the
Corporation at an exercise price of $0.19 per share for a period of
five years from the date of grant. The options have been granted in
accordance with the Corporation's stock option plan.
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.
Barrels of oil equivalent (BOE) may be misleading, particularly if used
in isolation. The BOE conversion ratio used in this report 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 this report are derived by converting gas to oil
in the ratio of six thousand cubic feet of natural gas to one barrel of
oil equivalent (6 Mcf = 1 BOE). It is important to note that the 1:6
ratio is based on an energy equivalency and the value ratio based on
the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1; utilizing a
conversion on a 6:1 may be misleading as an indication of value.
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 actual time to reach contract depth
of the Hamburg area well and the review of logs within thirty-five days
from the date of spud, plans to place the Sylvan Lake well on
artificial lift 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
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