CALGARY, Nov. 22 /CNW/ - Kootenay Energy Inc. ("Kootenay") announces the
results of its recent drilling program in central Alberta. Kootenay drilled
three 100% owned working interest oil wells in the Skaro field producing
37 degree API oil from the Cooking Lake formation. The additional 110 barrels
per day of oil production from these is anticipated to bring the total pool
production to 200 barrels per day. The cost of the three well program, drill
to tie in, is expected to be approximately $1,500,000 resulting in production
additions of $13,640 per producing barrel.
Kootenay also participated in the drilling of an exploration Ellerslie
oil well in the Killam area. The net 50% working interest well for Kootenay
was cased and tested. Unusually high oil viscosity for the region resulted in
low oil inflow under normal conventional operating conditions. Kootenay is
reviewing alternatives to produce the oil reserves in place.
Kootenay is also participating in a Keg River reef oil well (net 15%) in
the Shekilie, Alberta field. The development well was spud November 18, 2007
and if successful, is anticipated to commence production by year end. The well
is offsetting an earlier November 2005 infill well which had an initial oil
production rate of 500 barrels per day and has cumulative production to date
of 290 mbbls and is currently producing 340 barrels per day.
Kootenay's current production is approximately 520 barrels of oil
equivalent per day made up of 95% light oil and 5% natural gas.
The calculations of barrels of oil equivalent ("boe") are based on a
conversion rate of six thousand cubic feet ("mcf") of natural gas to one
barrel of crude oil. Boe's may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 mcf: 1 bbl 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 above disclosure contains certain forward-looking statements that
involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond the Corporation's control, including: the impact
of general economic conditions in Canada, industry conditions, increased
competition, the lack of available qualified personnel or management,
equipment failures, fluctuations in product prices and in foreign exchange or
interest rates and stock market volatility. The Corporation's actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances 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 the Corporation will derive there from.
THE TSX VENTURE EXCHANGE INC. DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information:
For further information: Kootenay Energy Inc. - Jack Marsh, President
and Chief Executive Officer, (403) 355-9800