/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 30 /CNW/ - Silverwing Energy Inc., ("Silverwing" or the
"Corporation" or the "Company") (TSX:SVW) recognizes that the royalty regime
changes announced on Thursday October 25th, 2007 by the Alberta provincial
government will affect many junior oil and gas exploration and production
companies in Alberta. This is particularly true for companies that explore in
the high potential Pembina Nisku oil play. Successful Nisku oil wells produce
at rates of up to 2,500 bbls of oil per day, but are also critically sour and
are therefore expensive to drill and to produce.
Silverwing is an active explorer for the Nisku in the Pembina and
Tomahawk areas of west-central Alberta. By virtue of its extensive freehold
land (non-government control royalty mineral rights) position at Tomahawk, the
Company expects to be primarily immune to the royalty changes announced on
Thursday. Silverwing is planning to drill six Nisku wells over the next 12
As a result of its recent financing activities, Silverwing currently has
the funding available to meet the drilling commitments under its Tomahawk
Farm-in Extension agreement, dated April 20th, 2007.
The Farm-in provides Silverwing access to over 51,000 net acres of
undeveloped freehold land in the Tomahawk area of central Alberta. The area is
known for its under-explored multi-zone oil and gas potential along with
highly prospective formations including a Nisku interior patch reef oil trend,
a zone of primary interest to Silverwing. This area provides the Company with
a high impact exploration program and the ultimate potential to achieve a
balanced oil and gas production portfolio and a stable revenue stream.
The Tomahawk Farm-in agreement requires that Silverwing drill 29 wells,
including up to 7 Nisku wells in the initial earning phase, with an option to
earn additional land with additional drilling potential and commitments.
To date, the Company has drilled 15 and cased 14 of the 22 wells that are
required to be drilled by December 31, 2007 under the agreement and is on
track to complete its commitments as planned.
Silverwing Energy Inc. is a junior oil and gas exploration and production
company based in Calgary. The Company commenced drilling and production
operations in 2003 and has subsequently established two core operating
regions: the northeastern British Columbia Prespatou fairway and the Tomahawk
area of central Alberta. Silverwing has also established an exploratory
presence in the Torquay area of southwestern Saskatchewan, known for its
Midale and Bakken oil potential. All three areas of operation are primarily
immune to changes in the royalty regime in Alberta.
Certain statements contained in this document are "forward-looking
statements". The projections, estimates and beliefs contained in such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause actual results or events to differ materially
from those anticipated in any forward-looking statements. Silverwing believes
the expectations reflected in those forward-looking statements are reasonable;
however Silverwing cannot provide any assurance that these expectations will
prove to be correct.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
For further information:
For further information: Silverwing Energy Inc., Oleh Wowkodaw,
President and Chief Executive Officer, (403) 538-5597, (403) 263-5549 (FAX),
Email: email@example.com or Terry O'Connor, Senior Vice President,
Business Development, (403) 538-5593, (403) 263-5549 (FAX), Email:
firstname.lastname@example.org or Martin Rude, Vice President, Finance and
Chief Financial Officer, (403) 538-5591, (403) 263-5549 (FAX), Email: