CALGARY, March 14 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY)
today reported on recent exploration and production activities.
During the month of March the Company has averaged in excess of
220 BOEPD. This increase will drive the rising production in this first
quarter and beyond. By way of comparison, the Company reported 171 boepd
averaged in Q3 2006; Q4 and year end figures have not yet been finalized.
Q1 2007 PRODUCTION OPTIMIZATION
Emerald Bay recently completed its pipeline construction and tie-in
operations in Dorenlee and Kelsey. The Company is currently evaluating
production bottlenecks that have us producing at constrained rates at
Dorenlee, Kelsey and Clive. It is the Company's goal to be fully optimized in
these areas by the end of the month which could potentially add another 25 to
50 BOEPD. In addition to the de-bottlenecking operations, Emerald Bay is also
planning the re-entry of a well with by-passed Glauconitic pay in Ferrybank.
The goal is to conclude this operation prior to spring breakup. Completion
operations on the non-operated (10% WI) well at 3-21-39-25 W4 will continue
through the next couple of weeks. The logs identified potential in the
Edmonton Sand and Belly River formations and the Company expects to announce
the results of the testing in the coming weeks.
Q2 2007 DEVELOPMENT FORECAST
- In Gilby, the Company will continue with Phase 2 of the testing
operations with three Jurassic intervals to be perforated and tested
during this phase.
- In Clive, Emerald Bay is currently reviewing trade seismic recently
purchased to confirm the location for a Basal Belly River well on
Company lands at 16-16-39-24 W4. The Company also plans to re-enter
its two open-hole CBM wells in 14-39-24 W4 to case, cement, fracture-
stimulate, and tie-in the wells to existing infrastructure. It is
forecasted that the Clive operations will commence immediately after
2007 CAPEX FORECAST
Due to the evolving nature of our 2007 capital expenditure plans, Emerald
Bay's CAPEX program forecast will be updated as operations progress over the
next 30 to 60 days. In the near-term the Company anticipates development
growth to be funded from an expanded bank line of credit and cash flow. The
updated engineering report that is expected by the end of March will be used
to finalize the CAPEX forecast.
OTHER PROPERTIES UNDER REVIEW
- Testing operations continue in Maverick County on the Cypress Hills
604-1 well. Very encouraged by the results to date, the Company is
working with its engineers, geophysicists, and geologists to determine
the location and associated risk factors of well No. 2.
- Completion operations were concluded in test well No. 1 that targeted
the Mississippian Madison Group in Southwest Saskatchewan. This well
did not have commercial quantities of producing hydrocarbons. Test
well No. 2 will not be drilled at this time. Emerald Bay had a
minority interest in this property and was relying on the operator and
majority interest owner to participate in further exploration. The
majority interest owner has declined to participate in the continuing
development, therefore Emerald Bay will re-direct its efforts in
ABOUT EMERALD BAY
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas
producer with production properties in Western Canada. The common shares of
Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please
visit our website at www.emeraldbayenergy.com.
If you would like to receive press releases via email please contact
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The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.
BOEs and BOEPDs may be misleading, particularly if used in isolation. A
BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words "believe,"
"estimate," "project," "expect" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Forward looking statements are statements
that are not historical facts and are generally, but not always, identified by
the words "expects," "plans," "anticipates," "believes," "intends,"
"estimates," "projects," "potential" and similar expressions, or that events
or conditions "will," "would," "may," "could" or "should" occur. Information
inferred from the interpretation of drilling results may also be deemed to be
forward looking statements, as it constitutes a prediction of what might be
found to be present when and if a well is actually developed. Forward-looking
statements in this document include statements regarding the Company's
exploration, drilling and development plans, the Company's expectations
regarding the timing and success of such programs. Factors that could cause or
contribute to such differences include, but are not limited to, fluctuations
in the prices of oil and gas, uncertainties inherent in estimating quantities
of oil and gas reserves and projecting future rates of production and timing
of development activities, competition, operating risks, acquisition risks,
liquidity and capital requirements, the effects of governmental regulation,
adverse changes in the market for the Company's oil and gas production,
dependence upon third-party vendors, and other risks detailed in the Company's
periodic report filings with the Securities and Exchange Commission.
For further information:
For further information: Emerald Bay President, Shelby D. Beattie, by
telephone at (403) 262-6000 or by email at email@example.com, or CHF Investor
Relations: Robin Cook, Account Manager, (416) 868-1079 x228, firstname.lastname@example.org;
Barry Leung, Account Manager, (416) 868-1079 x247, email@example.com