CALGARY, April 18 /CNW/ - Sure Energy Inc. (SHR, TSX) ("Sure Energy" or "the Company") is pleased to announce that it has closed an acquisition in the Virginia Hills area of Alberta for $7.5 million. The acquisition includes 120 barrels of oil equivalent per day (including 40 barrels of oil per day). More importantly it augments a smaller acquisition that the Company completed in January 2011 which exposes the Company to a potential new Viking horizontal resource play. In total, Sure Energy now owns 44,320 gross acres (28,382 net acres) of developed and undeveloped land in the Virginia Hills area with 160 barrels of oil equivalent per day associated production, 72 barrels a day of which is oil and liquids. The Virginia Hills area is an area of multi-zone potential. As well as the potential Viking Oil play the Company will have exposure to an emerging Beaverhill Lake horizontal oil resource play, exposure to a series of shallow gas plays and will assume ownership in a Gething oil unit.
The Company is also pleased to announce that it has received an increase to its existing bank credit facility from $15 million to $25 million. The increase in the credit facility is as a result of the increase in lending value from recent discoveries and acquisitions. This along with the $20 million term facility the Company arranged with Deans Knight Capital Management in December 2010, gives the Company a total borrowing capacity of $45 million.
As a result of the acquisition and anticipated drilling and completion activity to evaluate the assets, Sure Energy has increased its 2011 capital budget from $20 million to $35 million.
Sure Energy Inc. is a publicly traded oil and gas exploration and development company listed on the Toronto Stock Exchange under the symbol "SHR".
SOURCE Sure Energy Inc.
For further information: please visit our website at www.sureenergyinc.com or contact: Mr. Jeff Boyce, Chairman and CEO; Mr. Chris Baker, President and COO; Mr. Lance Wirth, Vice President, Finance and CFO, Phone: (403) 410-3100, Fax: (403) 410-3111, Email: firstname.lastname@example.org