Action Provides Q1-2009 Operations Update



    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICE. ANY FAILURE TO COMPLY WITH THIS
    RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./

    TSX-V Symbol "AEC"
    

    CALGARY, April 17 /CNW/ - Action Energy Inc. ("Action" or the "Company")
provides an update for Q1-2009 operational activities and production rates.

    
    OPERATIONS
    ----------
    
    During the first quarter of 2009, Action drilled 1 (0.5 net) successful
exploration well in its Bienfait Saskatchewan Bakken core area resulting in a
potential horizontal oil well that will be completed and equipped for
production after spring breakup. This well is the third and final earning well
for Action's partner in the area and Action was carried for 100% of the
drilling costs for this well.
    Also during the first quarter, Action completed three sand cleanout
operations on wells at Lloydminster which appear to have been effective in
removing packed sand from horizontal wellbores. The initial results of these
operations appear to have been successful at restoring individual well
production. Action believes there are up to twenty three potential well
cleanout and pump change operations out of 26 horizontal heavy oil wells that
have been drilled in the area. Each operation costs $25,000 to $50,000
depending on the condition of the wellbore. The Company plans to perform
additional cleanout operations on this 100% working interest property after
spring break-up and when economic conditions improve for heavy oil operations.

    
    PRODUCTION
    ----------
    
    During the first quarter of 2009, the Company produced an average of
1,236 boed (3.8 mmcf/d of natural gas, 487 bbl/d of heavy oil and 107 bbl/d of
oil and natural gas liquids ("NGLs")). Action's average production for the
quarter decreased 13% or 177 boed from 1,413 boed (3.5 mmcf/d of natural gas,
545 bbl/d of heavy oil and 278 bbl/d of oil and NGLs) for the fourth quarter
ended December 31, 2008. The drop in production is due to approximately 150
boed that was shut in during January and February due to freezing
temperatures, no new production brought on stream during Q1 because of limited
capital spending in Q4-2008 and no capital spending in Q1-2009, normal and
expected production declines on all properties and approximately 100 bbls/day
of heavy oil production that was voluntarily shut in at Lindbergh/Lloydminster
as a result of low heavy oil prices experienced in Q1-2009 and poor operating
economics on certain single-well operations.
    Current production for Action is approximately 1,050 to 1,100 boed (55%
natural gas, 25% heavy oil and 20% light oil and NGLs). There is approximately
200 to 250 boed that is either voluntarily shut in or awaiting some form of
remedial operation to return to production. With improving heavy oil price
differentials and dryer lease access, it is anticipated that these production
volumes will be restored after spring breakup. The Company also has in excess
of 100 boed of natural gas and NGL discovery that is expected to be tied in to
production facilities by the fourth quarter of 2009.

    
    FINANCIAL
    ---------
    In mid March 2009, Action entered into two forward costless commodity
contracts as follows:

    -------------------------------------------------------------------------
      Product         Volume             Period         Contract      Price
    -------------------------------------------------------------------------
    Natural gas  1,450 GJ per day  April 1, 2009 to    Fixed Price   $5.45/GJ
                                    December 31, 2009     Swap

    Natural gas  1,450 GJ per day  January 1, 2010     Call Option   $6.18/GJ
                                    to March 31, 2011
    -------------------------------------------------------------------------
    

    Action Energy Inc. is a publicly traded Calgary, Alberta based junior oil
and natural gas exploration and production company with operations
concentrated in three core areas in central Alberta and southern Saskatchewan.

    
    FORWARD LOOKING STATEMENTS
    --------------------------
    
    This press release may contain forward-looking statements including
expectations of future production, funds flow and earnings. These statements
are based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks associated
with the oil and natural gas industry (e.g., the impact of general economic
conditions, industry conditions, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other industry participants, the lack of availability of
qualified personnel or management, stock market volatility, ability to access
sufficient capital from internal and external sources, operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of estimates and projections relating to production, costs and
expenses, and health, safety and environmental risks. Additional information
on these and other factors that could affect Action's operations or financial
results are included in Action's reports on file with Canadian securities
regulatory authorities.
    Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of preparation,
may prove to be imprecise and, as such, undue reliance should not be placed on
forward looking statements. The actual results, performance or achievement of
Action could differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given that
any of the events anticipated by the forward looking statements will transpire
or occur, or if any of them do so, what benefits that Action will derive
therefrom. Action disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
    Boe's may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf: 1 bbl is based on a deemed energy equivalency
conversion method primarily applicable at the burner tip and is not intended
to represent a value equivalency at the wellhead.
    For further information, please review the Company's website: 
www.action-energy.com or, additional disclosures can be found at
www.sedar.com.

    
    NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE
    TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    

    %SEDAR: 00001728E




For further information:

For further information: Kelly D. Kerr, Vice President Finance & Chief
Financial Officer, ACTION ENERGY INC., Suite 800, 350 - 7th Avenue S.W.,
Calgary, Alberta, T2P 3N9, Phone: (403) 264-1112, Fax: (403) 264-1116, E-mail:
info@action-energy.com, Website: www.action-energy.com

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