CALGARY, Feb. 16 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY)
(the "Company") is pleased to report on recent crude oil-focused
developments in South Texas.
Medina County In-fill drilling: Through its 25% ownership of Production Resources Inc. (PRI), and as the
managing partner, Emerald Bay has more than 100 in-fill drilling
locations on the existing leases in Medina County. PRI has recently
completed its 1st ten-well drilling package on three separate leases in the Taylor Ina
field. Considering the 175+ existing wells on PRI's leases, a
comparative analysis shows each of the wells drilled have either met or
exceeded the Company's expectations. Three of ten drilling permits
have been received for the second 10-well program. It is expected that
PRI will have seven remaining permits approved by the end of February
in order to start drilling in early March. Approximately 50 to 60
wells are planned for development drilling on the existing PRI leases
Medina County Well optimization: The well optimization plan is moving along nicely. Approximately 40
wellbores are scheduled for the installation of upgraded lifting
equipment. The equipment has been secured and 5 to 6 wells are being
upgraded each week. The other two phases of optimization will be (i)
the work-over of the Olmos zone in the existing wells; and (ii) the
perforation and production of the by-passed pay zone called the
Escondido. Under Emerald Bay's direction, PRI has recently tested one
well on the Escondido zone with great success. The Olmos zone was
isolated; then the Escondido was perforated and put on pump with no
stimulation needed. The initial 24-hour test produced 100% oil at
rates equivalent to the Company's stimulated Olmos wells. According to
plan, the up-hole potential of the existing wellbores has been
converted to production very efficiently using Companies-owned
Land and production acquisitions: The Company continues its land and production acquisitions in South
Texas with specific focus on Frio, Atascosa, and Medina Counties.
Multiple deals are currently in various stages of due diligence and
negotiations, and the Company is very optimistic that the transactions
could close in the 1st quarter of 2011. Zones of interest will continue to be where the
Company has specific experience; such as the Escondido, Olmos, Austin
Chalk, Eagle Ford, and Buda. While the Eagle Ford shale is widely
considered to be the crown jewel, the Buda has been equally productive
for operators who have reached this zone just below the Eagle Ford.
"In March of 2010, when Emerald Bay took the lead and found the joint
venture partners willing to get behind the Taylor-Ina project, the
project was producing around 750 barrels per month. We firmly believed
that Taylor-Ina had the potential to produce over 20,000 barrels per
month with a focused optimization and drilling plan. Based on our
current lease position and rig availability, we are projecting a 2011
year-end monthly production volume over 12,000 barrels. This provides
a solid, repeatable production operation to build on as we expand in
the Eagle Ford trend of South Texas," summarized Shelby Beattie,
President and CEO.
About Emerald Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas
producer with production properties in Western Canada and South Texas.
The common shares of Emerald Bay trade on the TSX Venture Exchange
under the symbol "EBY". Please visit www.emeraldbayenergy.com.
Neither 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 release.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect", "plan", "intend", "anticipates",
"projects", "potential" or similar expressions.. Forward-looking
statements inherently involve risks and uncertainties that could cause
actual results to differ materially from the forward-looking
statements. Forward-looking statements are statements that are not
Information inferred from the interpretation of drilling results may
also be deemed to be forward looking statements, as it constitutes a
prediction of what might be found to be present when and if a well is
actually developed. BOE's may be misleading, particularly if used in
isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on energy
equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. The reader
is cautioned that assumptions used in the preparation of such
information, which are considered reasonable by Emerald Bay at the time
of preparation, may prove to be incorrect. Actual results achieved will
vary from the information provided and the variations may be material.
There is no representation by Emerald Bay that actual results achieved
will be the same in whole or part as those indicated in the
forward-looking statements. Forward-looking statements in this
document include statements regarding the Company's exploration,
drilling and development plans, the Company's expectations regarding
the timing and success of such programs. In particular, forward-looking
information in this news release includes, but is not limited to,
statements with respect to: pipeline acquisitions and leasing; pipeline
permits, pipeline construction, production estimates, drilling
operations, completion operations, funding and development goals.
Although we believe that the expectations reflected in the
forward-looking information are reasonable, there can be no assurance
that such expectations will prove to be correct. We cannot guarantee
future results, level of activity, performance or achievements.
Consequently, there is no representation that the actual results
achieved will be the same, in whole or in part, as those set out in the
forward-looking information. Factors that could cause or contribute to
such differences include, but are not limited to, fluctuations in the
prices of oil and gas, uncertainties inherent in estimating quantities
of oil and gas reserves and projecting future rates of production and
timing of development activities, competition, operating risks,
acquisition risks, liquidity and capital requirements, the effects of
governmental regulation, adverse changes in the market for the
Company's oil and gas production, dependence upon third-party vendors,
and other risks detailed in the Company's periodic report filings with
the applicable securities regulators.
SOURCE Emerald Bay Energy Inc.
For further information:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at firstname.lastname@example.org,
CHF Investor Relations:
Lauren Clarke, Associate Account Manager, (416) 868-1079 x241, email@example.com
Robin Cook, Senior Account Manager, (416) 868-1079 x228, firstname.lastname@example.org.
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