/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
CALGARY, Jan. 21 /CNW/ -
Alberta Clipper Energy Inc. ("Alberta Clipper" or "the Company") advises
that it has completed testing of its latest Leduc discovery in the Sylvan Lake
area of Western Alberta at 9-36-38-4W5 ("9-36"). The well, in which the
Company holds a 100% working interest, tested at a stabilized rate of 600
boe/d from 47 feet of pay in the Leduc Formation. The 9-36 well, which was the
final location drilled in the Company's 2007 program, is expected to be on
production by the end of the first quarter of 2008 at a restricted rate of 400
boe/d. In addition, Alberta Clipper advises it has now brought all 4 remaining
successful wells from its fourth quarter 2007 program on stream. Two of the
higher productivity wells continue, however, to produce at restricted rates
pending resolution of infrastructure issues.
First Half 2008 Capital Budget
The Board of Directors of Alberta Clipper Energy Inc. has approved a
$15 million capital budget for the first half of 2008. As further
clarification is provided on the New Royalty Framework ("NRF"), the Company
expects to be in a better position to provide information on plans for the
remainder of the year.
The first half budget projects drilling 6 wells (3.4 net) and undertaking
11 re-completions in the Company's core operating areas. Approximately
$14 million will be spent in Western Alberta and $1 million in Northeast
British Columbia. Over 85% of the capital program will be invested in drilling
and associated development activities with 60% of the budget being allocated
to light oil targets. Of the 6 wells to be drilled, 3 are exploratory and 3
are of a development nature.
Alberta Clipper exited 2007 with production in excess of 3,000 boe/d
which represents an increase of more than 50% over the 2006 exit rate. The
Company is targeting production of 3,000 - 3,200 boe/d during the first half
of 2008 with the majority of the projected production additions from the first
half drilling program occurring in the third quarter.
In Northeast British Columbia, Alberta Clipper will continue with the
development of the Trutch gas property with the construction of an 8.4 km
pipeline to tie-in a well at the western edge of the property. The well tested
at rates in excess of 1.0 MMcf/d (0.5 MMcf/d net) and is expected to be on
production before the end of the first quarter. The new pipeline will
establish a new infrastructure corridor for further development of the Trutch
property, which covers 33 sections of land.
The Company believes maintaining a strong balance sheet is critical in
the current environment and therefore has entered into a physical contract to
hedge 3,150 mcf/d of production at $7.37/mcf for the period of February 1,
2008 to September 30, 2008. Alberta Clipper expects to exit mid year with
approximately $36 million of net debt on bank lines of $55 million based on
current strip prices.
Alberta Clipper Energy Inc. is a publicly traded Canadian energy company
involved in the exploration, development and production of crude oil and
natural gas in western Canada.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements including
expectations of future production. More particularly, this press release
contains statements concerning Alberta Clipper's future cash flow, production
estimates, exploration and development drilling, regulatory applications,
payout estimates, capital expenditures, and drilling locations to be drilled.
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 gas industry (e.g., 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 reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
regulatory, commodity price, price and exchange rate fluctuation and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. Additional
information on these and other factors that could affect Alberta Clipper's
operations or financial results are included in Alberta Clipper's reports on
file with Canadian securities regulatory authorities.
The forward-looking statements or information contained in this news
release are made as of the date hereof and Alberta Clipper undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
Oil and Gas Advisory
This press release contains disclosure expressed as "Boe/d". All oil and
natural gas equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil. Equivalency measures
may be misleading, particularly if used in isolation. A conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the well head.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Not for
distribution to U.S. newswire services or for dissemination in the United
States. Any failure to comply with this restriction may constitute a violation
of U.S. securities law.
For further information:
For further information: Kel Johnston, President & C.E.O., Alberta
Clipper Energy Inc., Telephone: (403) 440-3474, Facsimile: (403) 440-3475,