TSXV Trading Symbol: SWE
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CALGARY, Feb. 25, 2014 /CNW/ - SilverWillow Energy Corporation
("SilverWillow" or the "Corporation") is pleased to announce an update
to its estimate of Contingent Resources and Discovered Bitumen
Initially-In-Place following an independent evaluation of the bitumen
resources attributable to its oil sands property, the Audet Lands,
located approximately 110 km northeast of Fort McMurray, Alberta.
Sproule Unconventional Limited ("Sproule") prepared the independent
evaluation of the bitumen resources for SilverWillow effective December
31, 2013. Sproule's work on the Audet Lands included a review of the
2013 drilling program results, geological evaluation and a review of
the work conducted by SilverWillow's independent consultants with
respect to caprock integrity and reservoir simulation, as well as
preliminary engineering design and costing studies to determine the
potential for production of bitumen using low pressure Steam Assisted
Gravity Drainage ("SAGD") methods.
Sproule has assigned a best estimate of Contingent Resources to the
Audet Lands of 83.6 million barrels of recoverable bitumen in place
amounting to an increase of 15.2 million barrels or 22% over the prior
year's best estimate of Contingent Resources of 68.4 million barrels
following a review of the results from the 2013 drilling program. The
estimate of Discovered Bitumen Initially-In-Place has decreased 2% from
1,845.9 million barrels to 1,803.8 million barrels.
SilverWillow Energy Corporation
Contingent Bitumen Resources1
as of December 31, 2013
1The term "contingent resources" is taken from the Canadian Oil and Gas
Evaluation Handbook ("COGEH") as published by the Society of Petroleum
Evaluation Engineers (Calgary Chapter). The volumes listed in the
chart above entitled, "Contingent Bitumen Resources" refer to
potentially recoverable volumes of bitumen resources. The volumes of
contingent bitumen resources in the above chart are presented in
millions of barrels at stock tank conditions. There is no certainty
that it will be commercially viable to produce any portion of the
contingent bitumen resources.
SilverWillow has updated its investor presentation to reflect this
announcement. The presentation is posted on SilverWillow's website at www.swenergy.ca.
The preparation and disclosure of the reported resource estimates are
the responsibility of SilverWillow's management and require approval by
the Corporation's Reserves and HSE Committee and Board of Directors.
Sproule's responsibility is to express an opinion on the contingent
bitumen resources based on the data provided by management. Sproule
carried out the evaluation and review in accordance with standards
established by National Instrument 51-101 Standards of Disclosure for
Oil and Gas Activities. These standards require that the contingent
resources estimates be prepared in accordance with COGEH.
Discovered Petroleum Initially-In-Place (equivalent to Discovered
Resources) is defined in COGEH as that quantity of petroleum that is
estimated, as of a given date, to be contained in known accumulations
prior to production. The recoverable portion of discovered petroleum
initially-in-place includes production, reserves, and contingent
resources; the remainder is unrecoverable.
Contingent Resources are defined in COGEH as those quantities of
petroleum estimated, as of a given date, to be potentially recoverable
from known accumulations using established technology or technology
under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies.
Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters or a lack of markets.
It is also appropriate to classify as ''contingent resources'' the
estimated discovered recoverable quantities associated with a project
in the early project stage.
With respect to the Contingent Resources associated with SilverWillow's
Audet Lands, the contingencies which prevent the classification of
these resources as reserves are as follows: the need to verify the
effectiveness of the McMurray Formation shales as caprock for steam
containment during the SAGD operation; uncertainties regarding the
regulatory requirements applicable to the development of the Audet
project; the absence of regulatory approvals for future commercial
development; the absence of a firm commercial development plan; and the
uncertainty of funding approval for commercial developments.
Prior to commercial production from the Audet Lands, which is not
expected prior to late 2017, and is subject in any event to the risks
described in this section, SilverWillow will have limited financial
resources and a limited source of income, principally in the form of
asset sales and farm-outs. SilverWillow anticipates making substantial
capital expenditures for the acquisition, exploration, evaluation,
delineation, development of and production from any potential project
related to its properties. There can be no assurance that debt or
equity financing, a bank loan facility or cash generated by operations
will be available or sufficient to meet these requirements or for other
corporate purposes or, if debt or equity financing is available, that
it will be on terms acceptable to SilverWillow.
The inability of SilverWillow to access sufficient capital for its
operations could have a material adverse effect on SilverWillow's
business, financial condition, results of operations and prospects,
could result in the delay or indefinite postponement of further
exploration, evaluation and development of SilverWillow's properties or
the possible loss of its properties and could put at risk
SilverWillow's ability to operate as a going concern.
Capital requirements are subject to normal capital market risks,
primarily the availability and cost of capital. The extent to which
SilverWillow will need to access additional funding will be subject to
normal capital market risks, primarily the availability and cost of
Contingent Resources do not constitute and should not be confused with
reserves. There is no certainty that it will be commercially viable to
produce any portion of the contingent resources on any of the above
For further information including risk factors, please see
SilverWillow's Management Discussion and Analysis for the period ended
September 30, 2013 which was filed on SEDAR at www.sedar.com and the
Corporation's website at www.swenergy.ca.
About SilverWillow Energy
SilverWillow Energy Corporation is a Calgary, Alberta based
pre-production oil sands company with a portfolio of exploration leases
in Canada's Athabasca oil sands. To learn more, please visit www.swenergy.ca.
FORWARD-LOOKING INFORMATION: This news release contains "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect", "project",
"intend", "believe", "anticipate", "estimate" and other similar words,
or statements that certain events or conditions "may" or "will" occur.
The forward-looking information in this news release relates, but is
not limited to, statements with respect to the Corporation's plans for,
and the economic viability of, the development of a proposed 12,000
barrel per day SAGD project. In addition information relating to
"resources" is forward-looking information, as it involves the implied
assessment, based on estimates and assumptions, that the resources
described exist in the quantities predicted or estimated, and can be
profitably produced in the future.
The forward-looking information set out in this news release, is based
on certain expectations and assumptions regarding, among other things,
the exploration and development of the Audet Project and the Audet
Lands; the ability of the Corporation to obtain required regulatory
approval for the development of the Audet Project; the ability of the
Corporation to raise capital to fund the development of the project;
the geography of the areas in which SilverWillow will be exploring; and
the sufficiency of budgeted capital expenditures in carrying out
planned activities. These expectations and assumptions are based on
certain factors and events that are not within the control of
SilverWillow and there is no assurance they will prove to be correct.
Forward-looking information is subject to known and unknown risks and
uncertainties and other factors which may cause actual results, levels
of activity and achievements to differ materially from those expressed
or implied in such forward-looking information. Such risks,
uncertainties and factors include, among others, the risk that new
regulatory requirements may prevent the development of the Audet
Project; the risk that, even if new regulatory requirements do not
restrict the development of the Audet Project, regulatory approvals in
respect of the Audet Project will not be received in the timeframe or
on the terms expected or at all; risks relating to the early stage of
development of SilverWillow and the Audet Project; and the general
risks associated with exploring for, developing and producing bitumen.
In addition, there are numerous uncertainties inherent in estimating
bitumen, including many factors beyond the Corporation's control, and
no assurance can be given that the indicated level of bitumen or the
recovery thereof will be realized. In general, estimates of bitumen are
based upon a number of factors and assumptions made as of the date on
which the resource estimates were determined, such as geological and
engineering estimates, which have inherent uncertainties. Additional
risks relating to the business and operations of SilverWillow are set
forth in the Corporation's TSX Venture Exchange Listing Application and
in its most recent Management's Discussion and Analysis, which are
filed under the Corporation's profile on SEDAR at www.sedar.com.
SilverWillow undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions
should change except as required by law. The reader is cautioned not
to place undue reliance on forward looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE: SilverWillow Energy Corporation
For further information:
please contact Howard J. Lutley, President and Chief Executive Officer, at (403) 538-7030