Synenco Energy releases updated independent estimates of Northern Lights Resource following 2006-2007 winter drilling program



    CALGARY, Dec. 18 /CNW/ - Synenco Energy Inc. today released updated
Discovered Resource estimates which incorporated the results of the 2006-2007
winter drilling program on the Northern Lights Partnership leases.
    The estimate was determined by Norwest Corporation, an independent
resource consulting company, in accordance with National Instrument standard
51-101. The estimate is based on the cumulative results from all drilling
conducted to date on the Northern Lights leases.
    The Best Estimate of Discovered Resource contained on Northern Lights
project lands is 1.657 billion barrels of bitumen in place (1.673 billion -
2006), with low and high estimates of 1.043 billion barrels and 2.067 billion
barrels (0.984 billion and 2.074 billion - 2006) respectively. Synenco
Energy's ownership interest in the Northern Lights Partnership leases is
60 percent.
    Discovered Resources are defined as "those quantities of oil and gas
estimated on a given date to be remaining in known accumulations. Discovered
Resources are divided into economic and uneconomic categories, with the
estimated future recoverable portion classified as reserves and contingent
resources respectively." The Best Estimate contemplates minimum ore thickness
of 3 metres; a minimum ore grade weight of 6 percent and a maximum TV:BIP
(total volume to bitumen in-place) of 18:1. Based on the mine plan submitted
as part of the Northern Lights regulatory application, 1.082 billion barrels
have been previously classified as contingent resources. The contingent
resource estimate remains unchanged.
    During the 2006-2007 winter program, 174 holes were drilled on NLP's
Western Lease to advance mine planning in the area where the initial Northern
Lights mine pit is to be located.
    "This report clearly confirms Northern Lights' significant resources,"
said Todd Newton, Synenco Energy's President and Chief Executive Officer.
"Last winter's drilling program was specifically designed to tighten hole
spacing in support of detailed mine planning and the mine application. With
more than 1,100 holes drilled over the last seven years, we have a very high
level of confidence in the quality of this asset."

    About Synenco Energy and Northern Lights

    Synenco Energy (TSX:SYN) 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, on
behalf of the NLP, holds five coal lease applications in northeastern Alberta.
In addition, Synenco Energy also holds a 100-percent interest in the
McClelland oil sands lease adjacent to Northern Lights project lands.
    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 Inc. ("Synenco") and NLP that are subject, in their entirety,
to this cautionary note. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "intend", "could", "might",
"should", "believe" and similar expressions.
    Estimates of NLP's in-place bitumen "Discovered Resources" are made as of
December 2007. Estimates of coal mineral resources in lands subject to NLP
coal lease applications are as of May 8, 2007. Estimates of NLP's bitumen
"Contingent Resource" are made as of June 2007 and are forward-looking
statements. (The terms "Contingent Resource" and "Discovered Resource" are
defined in the COGE Handbook. The terms "Inferred mineral resources" and
"Indicated mineral resources", as relating to coal, are defined in the CIM
Standards.) Further classification into contingent resources and/or reserves
is dependent on additional feasibility studies, validation through pilot
testing of the planned extraction process, and the issuance by the Government
of Alberta of a mine permit. Resource estimates are inherently uncertain and
are generally considered more uncertain than estimates of reserves. Future
estimates of recoverable resources and actual recoverable resources will
differ and may differ materially from the estimate of in-place bitumen
Discovered Resources or other resources.
    Statements with respect to the estimated capital costs for the project,
anticipated capital cost savings associated with the modular
construction/northern transportation strategy, capital cost sensitivities,
operating costs, netbacks, yields, cash flow, estimated rates of return, oil
price assumptions, natural gas and power requirements, costs of capital, the
project's proposed design, execution strategy and development schedule,
anticipated production, anticipated cash expenditures and commitments, the
proposed northern route, the benefits of modularization, anticipated water
consumption, the anticipated reclamation cycle, the timing of regulatory
review and approval, the economic impact of utilization of the coal resources,
and the sufficiency of cash resources are all forward-looking statements. All
other statements suggesting future plans and outcomes, including without
limitation statements regarding possible transactions 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 known and unknown risks and uncertainties. Undue reliance must not
be placed on them. Actual results will differ and may differ materially.
    Factors which could cause actual results to differ materially from those
expressed or implied include but are not limited to: availability and
fluctuating price of oil and energy commodities; heavy/light crude oil
differentials; operating conditions and costs; interest rate fluctuations;
costs of construction materials, labour and transportation; labour
disruptions; the level of engineering data available for estimations; changes
or refinements in project design and engineering or transportation and
execution strategy; economic recoverability of resources; ability to transport
modules as contemplated or at all; ability to secure adequate product and
diluent transportation; ability to finalize a binding agreement with Agrium or
others for the sale of by-products from the upgrader; changes in law or
government policy such as changes in the oil sands royalty regime and/or tax
regime, the regulatory environment and federal and provincial environmental
legislation; public opinion with respect to water usage, environmental issues
and socio-economic impacts of oil sands and energy projects; the ability to
obtain regulatory and governmental approvals and licenses on a timely basis or
at all (including, without limitation, approvals in respect of coal leases for
which NLP has made application); the ability to identify and successfully
negotiate commercially advantageous transactions; and the availability and the
cost of debt and equity financing. Refer also 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 expressly disclaims any obligation to update publicly or
revise any of the forward-looking statements except as required by law.
    Forward-looking information relating to the modular construction/northern
transportation strategy for the upstream project including its estimated
capital cost of $4.4 billion (2006 dollars) is based upon preliminary study by
management, and management's estimates and assessment of feasibility. Given
the early stage of the Project, there is no assurance that the proposed
strategy can be implemented, or implemented at the estimated costs. Management
has assumed the ability to negotiate and finalize binding agreements with
module fabricators and transportation companies for the manufacture and
transport of modules as contemplated by Synenco's modular
manufacturing/northern transportation strategy including the costs and
timeframes estimated by management. The modular construction/northern
transportation strategy also assumes that the risks associated with the
transportation routing proposed by management including those associated with
the weather and other physical and timing constraints imposed by the northern
routing can be successfully mitigated. This strategy also assumes that Asian
political, economic and labour sectors, and the costs of materials including
steel, and labour will not undergo significant change within the timeframes
projected for fabrication.





For further information:

For further information: Media: Scott Ranson, General Manager, Public
Affairs, Telephone: (403) 451-5212, Cellular: (403) 619-5038,
scott.ranson@synenco.com; Investment community: Todd Newton, President and
Chief Executive Officer, Telephone: (403) 261-1990; Or visit www.synenco.com

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