Palliser Expands Credit Facilities with the National Bank of Canada and Increases Production

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Sept. 12, 2011 /CNW/ - Palliser Oil & Gas Corporation ("Palliser" or the "Company") (TSXV: PXL) is pleased to announce that the Company has signed a credit facility agreement with the National Bank of Canada. The basic terms of the National Bank facilities are as follows: $18 million revolving line of credit and a $10 million Acquisition/Development demand loan.  The new facility will be used to pay out the current lender and increases Palliser's borrowing capacity by $10 million which will allow Palliser to complete the $41 million 2011 capital program while supplying the Company with additional financial flexibility.

Outlook & Operational Update

Based on field estimates, Palliser produced 1,508 boepd (barrels of oil equivalent per day, 97% heavy oil) in August, which is up from 1,363 boepd in July and represents a 23% increase in production as compared to the second quarter 2011 average of 1,225 boepd.

Palliser has continued operations on the 23 well Q3/Q4 (100% working interest) drilling and reactivation program in the Company's Lloydminster core area.  In August and September, two wells were drilled and cased and one well reactivated, for heavy oil production, with the balance of the program expected to be completed and all of the wells on production by year end.

At Lloydminster, Alberta and Manitou Lake, Saskatchewan, the Company continues to achieve higher oil production rates as a result of ongoing optimization work in both areas.  Palliser continues to work on our new salt water disposal (SWD) facilities at Edam, Saskatchewan with start up of the first facility expected in October, 2011 and the remaining two SWD facilities following shortly thereafter.

A copy of this press release is available at www.sedar.com or the Company's website at www.palliserogc.com.

About Palliser

Palliser is a Calgary-based emerging junior oil and gas company currently focused on high netback conventional heavy oil production in the greater Lloydminster area of both Alberta and Saskatchewan.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements that involve 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. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this release should not be unduly relied upon. Information and statements in this news release relating to "resources" are deemed to be forward looking information and statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated, and that the resources described can be profitably produced in the future. Actual results could differ materially as a result of changes in Palliser's plans, changes in commodity prices, regulatory changes, general economic, market and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations including anticipated success of resource prospects and the expected characteristics of resource prospects; uncertainties inherent in estimating quantities of resources; anticipated capital requirements, project rates of return and estimated project life; estimates of original discovered resource; estimates of recovery factors; lack of diversification; and overall technical and economic feasibility of the Company's projects. These statements speak only as of the date of this release or as of the date specified in the documents accompanying this release, as the case may be. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.

Disclosure provided herein in respect of boes may be misleading, particularly if used in isolation.  A boe conversion ratio of 6 mcf to 1 bbl 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 press release are derived by converting gas to oil according to this 6 mcf to 1 bbl ratio.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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 Palliser Oil

For further information:

Kevin Gibson
President and CEO
kevin@palliserogc.com
(403) 209-5717
          or        


 
Ivan J. Condic
Vice President, Finance and CFO
ivan@palliserogc.com
(403) 209-5718

 

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Palliser Oil & Gas Corporation

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