CALGARY, Jan. 22 /CNW/ - Bow Valley Energy Ltd. (TSX -BVX) announces an
update on its international operations.
U.K. North Sea Operations
Production for the fourth quarter of 2007 was approximately 4,300 boe/d.
Due to the timing of lifting oil shipments the sales volume for the
fourth quarter is expected to be approximately 3,600 boe/d up approximately
93% from sales of 1,867 reported in the previous third quarter 2007. The
remaining fourth quarter volumes are held in inventory pending future liftings
and sales in 2008.
New production additions are expected over the next six months from field
developments at Chestnut and Ettrick. At the Chestnut field, the Sevan
Hummingbird production facility was anchored on the field location in December
2007. The subsea wells will shortly be tied to the facility with flexible
risers and first oil is expected in the second quarter of 2008. Drilling and
completion of the Ettrick field development wells is continuing. The Aoka Misu
FPSO is undergoing hook-up in the Sembawang shipyard, Singapore, with delivery
anticipated in the second quarter. First oil production is forecast around mid
U.K. North Sea Exploration
The 9/28b-19A exploration well, operated by Bow Valley Petroleum
(UK) Limited (37.5%) on behalf of partners Marathon Oil U.K. Ltd. (37.5%) and
Vaalco UK (North Sea) Limited (25%), was drilled to a total measured depth of
12,726 feet. The well penetrated a thick sequence of Upper Jurassic Brae
Formation sandstone reservoirs, the top of which encountered 105 feet of gross
oil column. Formation pressures and fluid samples were acquired during a
TD wireline logging programme. The potential reserves associated with this
discovery are smaller than anticipated and the well has been suspended pending
further evaluation or possible development in conjunction with other activity
in the area. Bow Valley was carried for the majority of its costs in the
drilling of this well.
The drilling rig, Transocean Prospect, will now move to Block
16/27a North, where Bow Valley will operate the drilling of an Eocene
prospect. Bow Valley has farmed-out a portion of its interest in this block,
resulting in the Company retaining a 70% working interest in the block.
Elsewhere in the North Sea, Bow Valley (12%) will shortly participate in
the drilling of the Blackbird prospect close to our Ettrick field development.
Nexen, as operator of the Blackbird well, advise that they will be moving a
drilling rig to this location in mid-February.
Bow Valley has also committed to a drilling rig to drill one exploration
well on Block 22/11b in the second half of 2008. Block 22/11b is currently
owned by Bow Valley at a 100% working interest but the Company anticipates
finding a partner to join in the drilling of this well.
North Slope, Alaska
During the 2007 winter drilling season, Bow Valley (20% interest)
participated in drilling a new pool discovery with the Northshore No.1 well.
This well penetrated potential oil pay in the Sag and Ivishak Formations but
the joint venture group was unable to complete the well before the 2007 winter
drilling season came to an end. The well bore was drilled to 13,319 feet total
measured depth. Casing was run in the well to approximately 12,500 feet
measured depth and suspended for re-entry during the 2008 winter drilling
season. A drilling rig is now on location to complete and test both the Sag
and Ivishak formations.
After the completion and testing of the Northshore No.1 well, the joint
venture group will move the drilling rig southwest to drill an exploration
well, Tofkat No.1, situated east of the Village of Nuiqsut along the east side
of the Colville River and on trend to the Nanuk oil field. Dependent on
encouraging results from the Northshore No.1 completion and/or the results
from the Tofkat No.1 well, the joint venture group are prepared to drill up to
two additional exploration wells during this 2008 winter drilling season. In
addition, the group currently has a seismic crew active on the North Slope of
Alaska acquiring new 3-D seismic data on or around the groups extensive
R. G. Moffat, President and CEO of Bow Valley stated: "The Company's
underlying production remains steady and continued volume growth is forecast
from the addition of the Chestnut and Ettrick fields within the next three to
six months. It is also exciting to have such an active exploration program
added to this level of activity. Between the U.K. North Sea and the North
Slope of Alaska, Bow Valley will participate in drilling at least four to six
exploration prospects within the next six months. The Company's exploration
strategy is to participate in a multi-well, multi-year portfolio of prospects
that should be financed by the Company's growing production base. It is
gratifying to see the Company successfully execute on its business plan".
Bow Valley Energy Ltd. is an oil and natural gas exploration, development
and production company with operations in Alaska and the U.K sector of the
North Sea. The common shares of the Company trade on the Toronto Stock
Exchange under the symbol BVX.
Certain statements included or incorporated by reference in this news
release constitute forward-looking statements or forward-looking information
under applicable securities legislation. Forward-looking statements or
information typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", or similar words
suggesting future outcomes or statements regarding an outlook. Although the
Company believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not be placed
on forward-looking statements because the Company can give no assurance that
such expectations will prove to be correct. Forward-looking statements or
information are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause actual results
to differ materially from those anticipated by the Company and described in
the forward-looking statements or information. The forward-looking statements
or information contained in this news release are made as of the date hereof
and the Company 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. The forward looking statements or information contained in
this news release are expressly qualified by this cautionary statement.
Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil equivalent at six
thousand cubic feet to one barrel of oil equivalent (6 mcf = 1 boe). This
conversion ratio is the conversion used in the oil and natural gas industry
and is based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the wellhead.
The use of boe's may be misleading, particularly if used in isolation.
For further information:
For further information: Bow Valley Energy Ltd., R.G. Moffat, President
and CEO, or M.L. Janisch, Vice President Finance and CFO, Phone (403)
232-0292, website: www.bvenergy.com.