TSX Exchange: BEC
CALGARY, Nov. 23 /CNW/ - Berkana Energy Corp. ("Berkana" or the
"Company") is pleased to announce that the Company achieved its October 3,
2007 market guidance and provides the following updated guidance for the
remainder of 2007.
Current estimates for the fourth quarter place Berkana's 2007 exit rate
between 3,400 to 3,600 boe/d with average production of approximately
2,800 boe/d for calendar 2007. This is at the high range of our Company's
market guidance for 2007 average production of between 2,700 to 2,800 boe/d
and exceeds our most recent exit rate guidance (October 3, 2007) of between
3,000 to 3,100 boe/d.
During August and September, new production came on-stream intermittently
as third party processors commissioned new capacity. During the fourth
quarter, committed gathering and processing capacity became fully operational,
and Berkana experienced increased facility reliability to bring on-stream our
behind pipe production. This increased processing capacity will also help
accommodate new production anticipated from future drilling.
"Increased sales volumes, primarily at Kaybob, continue to move our
corporate production rates up," said Glenn Gradeen, CEO of Berkana. He
continued, "by overcoming processing capacity constraints and assuming no
mechanical or operational problems, we are increasing our estimated 2007 exit
rate to a range of 3,400 to 3,600 boe/d."
On November 8, 2007, Berkana's Board of Directors approved a $35 million
capital budget for calendar 2008. This budget was designed to facilitate
Berkana's targeted production growth of 25% to 30% per year. The Board will
review capital expenditures quarterly and monitor progress particularly in
light of the volatility of natural gas pricing. Berkana will remain
financially disciplined and an overriding principle will be to maintain a low
debt to cash flow ratio.
Berkana remains a highly focused company, currently producing over 95% of
its sales volumes from three core properties in Alberta at Rimbey, Kaybob and
Red Earth. Berkana's corporate production mix is 75% natural gas.
Budgeted capital expenditures for the fourth quarter are expected to be
between $11 million and $16 million with the majority planned for the drilling
of up to 13 gross wells in the Company's core areas.
Berkana is in the midst of its first drilling program in the Rimbey area
and expects the current drilling activities will add additional production.
The Company has drilled six gross wells, all to be completed, with two to four
further wells planned for later this winter. In addition, Kaybob's winter
drilling program commenced with the first of a four to six well program.
Berkana Energy Corp. is a Calgary based public resource company actively
pursuing crude oil and natural gas through exploration, development,
production and strategic acquisitions in key focus areas located in Western
Canada. Berkana was created as a vibrant, growing Canadian energy company with
a mission to grow shareholder wealth by adding reserves and production through
a balanced mix of low risk drilling opportunities, high impact exploration and
strategic acquisitions. The Company's common shares trade on the TSX Exchange
under the symbol BEC.
Additional information relating to Berkana is filed on SEDAR and can be
viewed at www.sedar.com. Information can also be obtained by contacting the
Company at Berkana Energy Corp., Suite 2100, 801 Sixth Avenue S.W., Calgary,
Alberta, Canada T2P 3W2 or by e-mail at email@example.com. Information is
also accessible on the Company's website at www.berkanaenergy.com.
Statements in this press release may contain forward-looking statements
including management's assessment of Berkana's future plans and operations.
Information concerning reserves may also be deemed to be forward-looking
statements as such estimates involve the implied assessment that the resources
described can be profitably produced in future. 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 background risks of the oil and gas
industry (e.g., operational risks in development, exploration and production;
potential 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),
and uncertainties resulting from potential delays or changes in plans with
respect to exploration, development projects, capital expenditures or
Per barrel of oil equivalent ("boe") amounts may be misleading,
particularly if used in isolation. A boe conversion ratio has been calculated
using a conversion rate of six thousand cubic feet of natural gas to one
barrel of oil (6 mcf:1 bbl) and is based on an energy equivalency conversion
method applicable at the burner tip and does not represent a value equivalency
at the wellhead.
For further information:
For further information: Robb Thompson, CFO,
firstname.lastname@example.org; Robyn Lore, Managing Director, Land,
email@example.com; Berkana Energy Corp., Suite 2100, 801 Sixth Avenue
S.W., Calgary, Alberta, T2P 3W2, Telephone: (403) 221-7700, Fax: (403)
221-7719, Website: www.berkanaenergy.com