CALGARY, Dec. 7 /CNW/ - Sure Energy Inc. ("Sure Energy" or the "the Company") is pleased to announce that it has made a significant sweet dual zone natural gas discovery in the Peace River Arch area of Alberta. The 100% working interest well production flow tested for eight days at a combined stabilized rate of 3.5 MMcf/d from two separate zones.
Operations are currently underway to tie the well in by mid January 2010. This discovery well is anticipated to commence production at a rate of 2.0 MMcf/d (335 BOE/d) net to the Company. This well qualifies for the Alberta Government Drilling Tax Credit of $200 a meter and a reduced government crown royalty of 5% on the first year's production. With this well on production, Sure Energy's corporate production will increase to over 1,000 BOE/d.
In this press release the calculation of barrels of oil equivalent (BOE) is calculated at a conversion rate of 6,000 cubic feet (Mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. BOEs 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.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or Sure Energy's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Sure Energy's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, Sure Energy's statements with respect to the timing to tie in the well, anticipated production from the well and the Company's increased production contain forward looking information. Sure Energy's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. Sure disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Sure Energy is a public company traded on the Toronto Stock Exchange under the symbol SHR.
SOURCE Sure Energy Inc.
For further information: For further information: please visit our website at www.sureenergyinc.com or contact: Mr. Jeff Boyce, President and CEO, Phone: (403) 410-3100, Email: firstname.lastname@example.org, or Mr. Lance Wirth, Vice President Finance and CFO