CALGARY, June 14 /CNW/ - ProspEx Resources Ltd. ("ProspEx" or the
"Company") will be providing an operational update at the upcoming Canadian
Association of Petroleum Producers ("CAPP") Investment Symposium on June 19
and 20, 2007. Highlights of this operational update are:
- ProspEx's new facilities in Harmattan were commissioned in mid-May,
and current corporate production is 4,400 to 4,600 barrels of oil
equivalent ("boe") per day. Two wells are currently producing at
Harmattan, with two additional wells tied in and scheduled to come
onstream after the initial flush production decline from the first
wells. Two further wells are scheduled for tie-in during July.
- In the Deep Basin, the Company's first quarter 2007 exploration well
continues to produce at a stable, facilities constrained rate of
17 million cubic feet ("mmcf") per day (850 boe per day net to
- New production also came onstream in May in the Granum area. Two
wells drilled in the first quarter of 2007 were tied in and are
producing approximately 140 boe per day net to ProspEx. Two follow-up
wells to this discovery are planned for the summer, with the first
well currently being drilled.
- Second quarter production is expected to be approximately 4,000 boe
per day, compared to production of 3,166 boe per day in the first
quarter of 2007. The Company believes that it is on track to achieve
its previously released production guidance of 4,000 to 4,200 boe per
day for the full year, equivalent to 30% production growth versus
- Summer drilling programs are planned for all three of the Company's
core areas. Drilling in West Central Alberta is expected to start in
July, with step-out locations offsetting the Cardium W Pool in
Harmattan. A ProspEx operated drilling program at Medallion in
Southern Alberta is also expected to start in July. Drilling in the
Wapiti and Kakwa areas in the Deep Basin is scheduled to start in
- The Company continues to maintain a strong balance sheet, with
current debt levels of approximately one year's debt to cash flow.
Approximately half of the Company's summer gas production is hedged
with floor prices of $7.00/GJ at AECO, providing assured cash flow in
an environment of weakening gas prices.
The CAPP Investment Symposium presentation will be available via web cast
on the Company's website at www.psx.ca on Tuesday, June 19, 2007 at 11:25 a.m.
(MDT). A copy of this presentation will also be available to download on the
Company's website at www.psx.ca.
ProspEx is also announcing that Mr. Peter Luxton, the Company's Vice
President, Exploration will be stepping down from this role effective June 30,
2007. Mr. Luxton has led ProspEx's exploration efforts since the inception of
the Company in October 2004. The Company has pursued a strategy of "drill bit
growth" under his direction, growing to current production of 4,400 to
4,600 boe per day from initial production of 1,470 boe per day. ProspEx
extends its thanks to Mr. Luxton for his contributions to the Company's
success to date. Mr. Luxton will continue to be an advisor to the Company
after June 30.
ProspEx is pleased to announce that Mr. Bruce McFarlane will assume the
role of Vice President, Exploration of ProspEx effective June 30, 2007. Mr.
McFarlane brings more than 15 years experience serving in various exploration
and leadership capacities over the course of his career at Amoco Canada,
Canadian Hunter Exploration, Burlington Resources and, most recently, Kereco
Energy. His extensive deep basin exploration and management expertise will be
an asset to ProspEx as the Company continues to grow. Mr. McFarlane joined
ProspEx in February, 2007. He graduated from the University of British
Columbia in 1988 with a Bachelor of Science (Honours) and from Queens
University in 1992 with a Master of Science, and has been a member of the
Canadian Society of Petroleum Geologists (CSPG) since 1999.
ProspEx Resources Ltd. is a Calgary-based junior oil and gas company
focused on exploration for natural gas in the Western Canadian Sedimentary
Certain information regarding ProspEx Resources Ltd. including
management's assessment of future plans and operations, constitutes
forward-looking information or statements under applicable securities law and
necessarily involve assumptions regarding factors and risks that could cause
actual results to vary materially, including, without limitation, assumptions
and risks associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets, volatility of
commodity prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of acquisitions and
ability to access sufficient capital from internal and external sources.
The reader is cautioned that these factors and risks are difficult to
predict and that the assumptions used in the preparation of such information,
although considered reasonably accurate by ProspEx at the time of preparation,
may prove to be incorrect. Accordingly, readers are cautioned that the actual
results achieved will vary from the information provided herein and the
variations may be material. Readers are also cautioned that the foregoing list
of factors is not exhaustive. Additional information on these and other
factors that could affect ProspEx's operations or financial results are
included in ProspEx's reports on file with Canadian securities regulatory
authorities. In particular see ProspEx's MD&A and the Risk Factors and
Industry Conditions sections of ProspEx's Annual Information Form. ProspEx's
reports may be accessed through the SEDAR website (www.sedar.com), at
ProspEx's website (www.psx.ca) or by contacting the Company directly.
Consequently, there is no representation by ProspEx that actual results
achieved will be the same in whole or in part as those set out in the forward
Furthermore, the forward-looking statements contained in this news
release are made as of the date of this news release, and ProspEx does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained herein are
expressly qualified by this cautionary statement.
Boe's may be misleading, particularly if used in isolation. A boe
conversion ratio of six thousand cubic feet to one barrel is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.
For further information:
For further information: John Rossall, President & Chief Executive
Officer, firstname.lastname@example.org, (403) 268-3941 or George Yee, Vice President Finance
and Chief Financial Officer, email@example.com, (403) 268-3942