Second Wave Petroleum Announces Beaverhill Lake Joint Venture Agreement in Judy Creek and Provides an Operations Update

Toronto Stock Exchange: SCS
82,922,629 Common Shares

CALGARY, Feb. 22 /CNW/ - Second Wave Petroleum Inc. ("Second Wave" or the "Company") is pleased to announce a strategic joint venture and farm out arrangement at Judy Creek focused on its Beaverhill Lake light oil play and resumption of production at its Judy Creek Pekisko oil battery and gas plant.

Judy Creek Beaverhill Lake Light Oil Joint Venture

Second Wave is pleased to announce that it has entered into a Joint Venture and Farm Out Agreement ("the Agreement") involving its Beaverhill Lake mineral rights at Judy Creek with an intermediate exploration and production Company. The Beaverhill Lake formation in Judy Creek represents a potential large light oil resource opportunity where off-setting acreage is currently being successfully developed through the application of horizontal drilling and multi-stage acid fracturing completion techniques.

Under the terms of the Agreement Second Wave's joint venture partner will have the ability to earn a 60% interest in the Company's 50,000 net acres of Beaverhill Lake mineral rights at Judy Creek by drilling a total of 13 horizontal earning wells. The Agreement calls for the Company's joint venture partner to pay 85% of the total costs to drill and complete each of the Beaverhill Lake horizontal earning wells in exchange for a 60% working interest in each 3,840 acre earning land block. Second Wave will pay the remaining 15% of the drilling and completions costs to retain a 40% working interest. The Company's partner has committed to drill the first two earning wells prior to the end of the second quarter of 2011 and has a rolling option to drill an additional 11 earning wells thereafter to earn an interest in the remaining lands. Second Wave will be the operator of the first well drilled.

This joint venture represents a significant step forward in the development of Company's Beaverhill Lake light oil resource which the Company believes offers meaningful exposure to this potential light oil resource while allowing the Company to focus the majority of its capital on the continued development of its Judy Creek Pekisko oil resource play.

Operation Update

The Company is pleased to announce that it has resumed production at its Judy Creek Pekisko oil battery and gas plant. As noted previously on December 10th, 2010, the Company experienced a fire at its Judy Creek 08-24-063-10W5 gas plant resulting in the plant's gas refrigeration system and the associated building suffering significant damage. As a result of this damage the Company shut in approximately 1,650 boe/d of net production until repairs could be made. Upon completing required repairs and receiving all regulatory approvals the Company started up the new gas plant on February 8, 2011.  Subsequently the Company has been systematically re-activating its oil wells in the area to effectively manage the flow of new volumes to the facility.  A total of 18 horizontal Pekisko wells have been brought on to date with a further four (4.0 net) wells to be placed on production over the next four weeks.

During the outage the Company took the opportunity to complete a significant number of upgrades to the gas plant to improve operating efficiencies, reduce downtime and to accommodate the Company's expanding production volumes from its planned drilling program in Judy Creek. Capacity of the refrigeration unit, inlet separation and flare system were expanded to accommodate up to 12 mmcf/d of solution gas production. As part of the repair the Company also installed an electrical generator at the plant site to improve operating efficiencies and reduce future downtime.

Since re-starting the Judy Creek facility the Company has reached total corporate production of 2,650 boe/d (60% liquids). In Judy Creek the Company currently has 22 (22.0 net) Pekisko horizontal oil wells drilled, completed and tied in with eight (8.0 net) wells having less than 30 days of production history.

The Company has planned an active drilling program in the first quarter and expects to drill four (4.0 net) vertical Ellerlsie oil wells, one (0.4 net) Beaverhill Lake horizontal oil well one (1.0 net) Pekisko oil well. Two (2.0 net) Pekisko horizontal wells that were drilled in the fourth quarter of 2010 were successfully completed and tied in prior to the start up of the gas plant. To date three of the Ellerlsie oil wells have been cased and completed successfully with the fourth well currently being drilled. Drilling and completion activities on the remaining wells are scheduled to occur later in the first quarter. The Company will look to provide a further operational update on its Judy Creek Pekisko, Beaverhill Lake and Ellerslie oil plays as additional testing and production history is attained in the first quarter.

READER ADVISORIES

Barrels of Oil Equivalent (BOEs). The term BOE refers to barrel of oil equivalent, with natural gas converted to crude oil equivalent at a ratio of six thousand cubic feet to one barrel. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf (six thousand cubic feet) to one bbl (one barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward-Looking Statements.  This news release contains forward-looking statements as to the Company's internal projections, expectations and beliefs relating to future events or circumstances. Forward-looking statements are typically (but not necessarily) identified by words such as "anticipate", "believe", "plan", "estimate", "expect", "plan", "intend", "potential", "may", "will", "should" or similar words suggesting future outcomes. Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on them as they are subject to known and unknown risks and uncertainties, many of which are beyond the Company's control. Forward-looking statements are not guarantees of future outcomes. There can be no assurance that the plans, intentions or expectations contained in the forward-looking statements or upon which they are based will in fact occur or be realized, and actual results may differ from those expressed or implied in the forward-looking statements. The difference may be material.

Second Wave is subject to the inherent risks associated with the exploration, development, exploitation and production of oil and gas. More particularly, material risk factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in this news release include: adverse changes in commodity prices, interest rates or currency exchange rates; accessibility of capital when required and on acceptable terms; lower than expected production of crude oil and natural gas; production delays; lower than expected reserve volumes on the Company's properties; increased operating costs; ability to attract and retain qualified personnel or to secure drilling rigs and other services on acceptable terms; competition for labour, equipment and materials necessary to advance the Company's projects; unforeseen engineering, environmental or geological problems; ability to obtain all required regulatory approvals on a timely basis and on satisfactory terms; and changes in laws and governmental regulations (including with respect to taxes and royalties). This list is not exhaustive. Readers should also review the risk factors described in other documents filed by the Company from time to time with securities regulatory authorities in Canada, including its most recent annual information form, copies of which are available electronically at www.sedar.com and at www.secondwavepetroleum.com.

The forward-looking statements included herein are made as of the date of this news release and Second Wave undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by securities laws.

SOURCE Second Wave Petroleum Inc.

For further information:

Colin B. Witwer, President and CEO
Randy Denecky, VP, Finance and CFO
Telephone: (403) 451-0165
Email: info@secondwavepetroleum.com
Web: www.secondwavepetroleum.com

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Second Wave Petroleum Inc.

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