Invicta Energy announces operations update & increased credit facility

CALGARY, Sept. 29, 2011 /CNW/ - Invicta Energy Corp. ("Invicta" or the "Company") (TSXV: VCA) is pleased to report an operations update and a significant increase in its credit facility with its current lender, ATB Financial.

Operations Update
Invicta has drilled, completed and placed on production 8 gross (4.4 net) horizontal wells over the past couple of months at Kindersley, Saskatchewan. Of the eight wells drilled, six wells are still flowing and two wells are pumping. Initial 30 day average gross production rates ranged from 20 to 80 bopd with the average at 40 bopd. The peak gross production rates from several individual wells exceeded 100 bopd during the first 30 to 45 days. The best well reached a gross peak rate of 150 bopd during a 48 hour production test. These rates do not include the solution gas which is currently being tied-in during the last week of September which should add another 100 to 120 boepd of gross production. Peak gross oil production from the property exceeded 350 bopd without the solution gas during August. Invicta is confident that the Kindersley property will provide drilling opportunities for the next several years based on this past summer's drilling results which have established over 100 drilling locations. 15 of these locations at Kindersley are being surveyed to be licensed and ready to drill in the next few quarters.

Invicta's current net production is 245 boepd (90% light oil). Net production is expected to increase to over 300 boepd in October, 2011 with the tie in of the Kindersley solution gas.

Credit Facility
The Company's credit facility has doubled from $3 million to $6.0 million. The increase is primarily based on a review of the production results from the recently completed drilling program at Kindersley.  Gordon Reese, President and CEO of Invicta commented "We are very pleased that our lender is supportive of our vision of developing our Viking resource play in Kindersley, SK."  The Company plans to spend approximately $4.8 million of capital in the fourth quarter to drill 6 gross (3.75 net) wells at Kindersley, SK, shoot two seismic programs and participate in crown land sales. Total capital spending for 2011 is forecasted to be $11 - $12 million with exit production ranging from 350 - 400 boepd (2 to 3 times 2010 exit of 150 boepd).

About the Company
Invicta is a Calgary based, emerging junior oil and gas company exploring and developing light oil opportunities in Saskatchewan and Alberta.  The Company's current focus is the development of its Viking resource play in Kindersley, Saskatchewan.

Cautionary Statements:

This press release contains certain forward-looking statements (forecasts) under applicable securities laws relating to future events or future performance. Forward-looking statements are necessarily based upon assumptions and judgements with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather, the regulatory and legal environment and other risks associated with oil and gas operations. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operating results and various components thereof affecting the economic performance of Invicta.  Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.

In the interest of providing Invicta shareholders and potential investors with information regarding Invicta, including management's assessment of future plans and operation, certain statements throughout this press release constitute forward looking statements.  All forward-looking statements are based on Invicta's beliefs and assumptions based on information available at the time the assumption was made.  The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward looking statements.  By its nature, such forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements.  Invicta believes the expectations reflected in those forward looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward looking statements contained throughout this press release should not be unduly relied upon.  These statements speak only as of the date specified in the statements. 

In particular, this press release may contain forward looking statements pertaining to the following:

  • the performance characteristics of Invicta's oil and natural gas properties;
  • oil and natural gas production levels;
  • capital expenditure programs;
  • the quantity of Invicta's oil and natural gas reserves and anticipated future cash flows from such reserves;
  • projections of commodity prices and costs;
  • supply and demand for oil and natural gas;
  • expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; and
  • treatment under governmental regulatory regimes.

Invicta's actual results could differ materially from those anticipated in the forward looking statements contained throughout this press release as a result of the material risk factors set forth below, and elsewhere in this press release:

  • volatility in market prices for oil and natural gas;
  • liabilities inherent in oil and natural gas operations;
  • uncertainties associated with estimating oil and natural gas reserves;
  • competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel;
  • incorrect assessments of the value of acquisitions and exploration and development programs;
  • geological, technical, drilling and processing problems;
  • fluctuations in foreign exchange or interest rates and stock market volatility;
  • failure to realize the anticipated benefits of acquisitions;
  • general business and market conditions; and
  • changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry.

These factors should not be construed as exhaustive.  Unless required by law, Invicta does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.

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 release.

SOURCE Invicta Energy Corp.

For further information:

For further information please visit our website at www.invictaenergy.ca or contact the following:

Gordon Reese
President & CEO
(403) 265-8890 ext 1     




or





    Carrie McLauchlin
Vice President, Finance & CFO
(403) 265-8890 ext 4

Profil de l'entreprise

Invicta Energy Corp.

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