/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, Sept. 26 /CNW/ - Vero Energy Inc. (TSX - VRO, "Vero" or the
"Company") is pleased to report that current production and average third
quarter production based on field estimates is approximately 5,150 boed and
4,825 boed (80% natural gas) respectively. In the quarter, Vero participated
in the drilling of 10 (6.6 net) wells with a success rate of 90% including two
new pool discoveries. Currently 8 (4.8 net) wells are awaiting either
completion or tie in.
The results of our operations and drilling program to date, coupled with
projects anticipated for the balance of the year warrant an increase in our
estimated year end production exit rate from 5,000 - 5,200 boed to 5,400 -
Highlights for the quarter include three full months of operation at the
Edson (100% owned) gas compression facility that was commissioned late in the
second quarter. The new facility eliminated restrictions on production that
was caused by high and increasing line pressures. The Company also
participated in the addition of a second compressor in Edson to alleviate
increased line pressures. Two (1.3 net) horizontal Rock Creek wells were
drilled in the quarter. Two (1.5 net) additional horizontal wells are expected
to be drilled prior to year end. Results from these wells continue to exceed
our expectations and as such Vero believes this continues to establish us as
leaders of drilling and completing horizontal wells by being the most cost and
time efficient operator in the area. The Company is in the process of building
a 100% working interest, 20 MMCFD, expandable gas processing facility at the
new compressor site. The facility is expected to be operational prior to year
end and will ease any issues related to our expected additional production
from the future drilling program. In this quarter, Vero received regulatory
approval for the down-spacing of land in the Edson area. There are now 19
sections approved for the drilling two wells per pool, per section. There are
still 22 additional sections awaiting approval. There is the potential drill
up to 50% of these wells as horizontal wells.
At Corbett 3 (3.0 net) wells were drilled in the quarter. This area has
now become our second largest producing area with production at over 600 boed
(40% oil) based on field estimates. Two, 100% wells are planned to be drilled
prior to year end. Corbett is an area that is very complicated both from a
geological and an operations standpoint. The core pool had approximately 500
mboe of proved plus probable reserves booked as of December 31, 2006 based on
only 2 producing wells. The Company now has 4 producing wells and has a
dominant land, gathering and facility infrastructure, and seismic position.
Operating costs are expected to decrease in the area as water disposal
facilities are on-site and a tank farm battery is processing clean oil.
Doug Bartole, President and CEO of Vero stated that "We again had an
outstanding quarter where our successes have us producing at our projected
2007 exit rates and now require us to increase our 2007 exit production
guidance." he also adds "Corbett is now our second largest producing area. It
is a very exciting play for us and it continues to evolve. The light sweet oil
production will continue to add to our high netback production and our
technical and operations staff continue to meet the challenges in developing
this play. In our largest producing area, Edson, we continue to build our land
base, and infrastructure which will enable us to continue with our multi-year
drilling program. This should allow for substantial reserve increases given
the current conservative booked amount."
Vero continues to manage its business in a prudent and efficient manner
and this will ensure that profitable growth is aligned with the balance sheet.
The Company estimates its 2007 drilling count will be approximately 39 (26.2
Vero Energy Inc. is a publicly traded Canadian energy company involved in
the exploration, development and production of oil, natural gas and liquids in
Alberta. The Company's shares trade on The Toronto Stock Exchange under the
symbol "VRO". Please visit our website for the latest presentation to be
posted at the beginning of October.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
Forward Looking Statements: Certain information regarding the Company in
this news release including management's assessment of future plans and
operations, production estimates, drilling inventory and wells to be drilled,
timing of drilling and tie-in of wells, productive capacity of new wells,
capital expenditures and the timing thereof, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
including, without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, the timing and length of
plant turnarounds and the impact of such turnarounds and the timing thereof,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources. As a
consequence, the Company's actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly no assurance can be given that any
events anticipated by the forward-looking statements will transpire or occur,
or, if any of them do so, what benefits the Company will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could effect the
Company's operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com), and the Company's website
(www.veroenergy.ca). Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
BOE Disclosure: Disclosure provided herein in respect of barrels of oil
equivalent (BOE) 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.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
This press release is reproduced on Vero's website at www.veroenergy.ca.
Also for the latest presentation and other information about Vero Energy Inc.,
please visit the website (www.veroenergy.ca).
For further information:
For further information: Doug Bartole, President & CEO, at (403)
218-2063; Gerry Gilewicz, Vice-President Finance & Chief Financial Officer at
(403) 693-3170; Scott Koyich, Investor Relations, (403) 714-5979