CALGARY, March 28 /CNW/ - Synenco Energy Inc. (TSX: SYN) today announced
the completion of its 2006/2007 winter drilling program, which included
245 core holes. The company focused its program on two areas: the planned
opening pit area on the Northern Lights Partnership's (NLP) Western Lease, and
the company's wholly-owned McClelland Lease.
"This winter's program was the largest in the seven year history of
Synenco Energy," said Executive Vice President of Operations Steve Gilliland.
"We completed the program with zero lost-time incidents; we gained valuable
information that should lead to greater clarification about our resource; and
we built facilities that will improve performance in future years."
Of the program's core holes, 174 were drilled on NLP's Western Lease to
further advance mine planning in the area where the initial Northern Lights
mine pit is expected; 63 were drilled on the McClelland Lease as part of the
second half of the initial exploration program on the lease; and eight were
drilled on NLP's coal lease application area. Indications of mineable bitumen
meeting the company's physical cut-off parameters were noted in holes drilled
in the southeastern area of the McClelland Lease.
Synenco Energy will report geological results and resource updates
incorporating the results of this winter's drilling program once analysis by
an independent geological engineering firm has been completed in the second
half of the year.
In addition to the 245 core holes, highlights of the company's 2006/2007
- drilling of almost 300 auger holes as part of Northern Lights'
program for groundwater investigation, facility foundation design,
and to confirm the absence of oil sand under planned locations of
- collection of a 1,400-tonne bulk sample, which will provide Northern
Lights with oil sand to run extraction pilot plant tests scheduled
for later this year;
- commissioning of a new 250-bed camp that will allow for earlier
winter season access; and,
- improvements made to waste handling and drilling fluid disposal
About Synenco Energy and Northern Lights
Synenco Energy is a Calgary-based oil sands company which, with a
60-percent interest, is the managing partner of the Northern Lights
Partnership and operator of the Northern Lights oil sands project. Synenco
Energy also holds a 100-percent interest in the McClelland oil sands lease
adjacent to Northern Lights project lands.
The Northern Lights project consists of an oil sands mining and bitumen
extraction project to be established about 100 kilometres northeast of Fort
McMurray, Alberta, and a heavy oil upgrader proposed for Sturgeon County near
Edmonton. Separate regulatory applications for each segment of the project
were filed with the Alberta Energy and Utilities Board and Alberta Environment
during 2006. The independent best estimate of Northern Lights bitumen, based
on all drilling up to and including the 2005/2006 program, is 1.67 billion
barrels of Discovered Resources.
SinoCanada Petroleum Corporation, an indirect wholly-owned subsidiary of
China-based Sinopec, owns the remaining 40 percent of the Northern Lights
Partnership and project.
Cautionary note regarding forward-looking statements:
This news release contains "forward-looking statements" relating to
Synenco Energy and NLP which are expressly qualified by this cautionary note.
Estimates of NLP's bitumen "Discovered Resources" are made as of December 2006
and are forward-looking statements. (The term "Discovered Resources" is
defined in the COGE Handbook and in CSA Staff Notice 51-321.) Further
classification into contingent resources or reserves is not expected to be
possible until a feasibility study has been completed. Resource estimates are
inherently uncertain and are generally considered more uncertain than
estimates of reserves. The estimated and actual resources recoverable will
differ and may differ materially from the estimate of NLP's in-place bitumen
discovered resources. All statements suggesting future plans and outcomes are
forward-looking statements. Readers are strongly cautioned that
forward-looking statements are inherently uncertain and based on a number of
estimates and assumptions and subject to numerous known and unknown risks and
uncertainties. Undue reliance must not be placed on them. Actual results will
differ, and in some cases will differ materially. Factors which could cause
actual results to differ materially from those expressed or implied include
but are not limited to: the fact that the Northern Lights Project is in the
early stages of engineering and revisions and enhancements to the Project's
design, engineering, procurement and construction plans will occur. Refer to
the risk factors in Synenco's annual information form dated March 9, 2007.
Forward-looking statements are made as at the date of this news release and
are not guarantees of future performance. Synenco Energy expressly disclaims
any obligation to update publicly or revise any of the forward-looking
statements except as required by law.
For further information:
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