Butte Energy Inc. - Operational Update



CALGARY, May 13, 2013 /CNW/ - Butte Energy Inc. (the "Company") is pleased to provide an operational update. The Chigwell Viking 4-35-42-26 W4 well was shut-in effective January 2012 pending a hearing and ruling on a Special Well Holding Application filed on December 21, 2011 with the Energy Resources Conservation Board (the "ERCB"). Such hearing was necessitated as a result of an objection by Glencoe Resources Ltd., operator of the immediately adjacent CO2 enhanced oil recovery ("EOR") scheme. The Company has received notification from the ERCB that its Special Well Holding Application has been denied. The 4-35 well will continue to be shut-in until the Company applies for and obtains approval from the ERCB for its independent EOR scheme.

While denying the Company's Holding Application,  the ERCB's ruling confirmed key elements of the Company's Holding Application that are worthy of note. The Company has always contended that its Section 35 lands are being influenced and inequitably drained by Glencoe's EOR scheme, to which the ERCB noted in its ruling, "…the examiners accept that C02 injection at Glencoe's 14-26 well has swept some oil from Section 35 to Glencoe's 8-34 well."

The Company, in response to this significant drainage, is reviewing and weighing all options, including an independent EOR scheme and any civil actions required to aggressively protect its reserves and to recover the reserves, swept to date, from its Section 35 lands.

In addition, approval from the ERCB to place the PEOC HZ Plain 3-4-55-12 W4 well on production has been obtained. The well is awaiting tie-in prior to being placed on production.

Forward looking information

This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. In particular, this news release includes forward looking information relating to the potential options in respect of the Company's Section 35 lands and approval of the Company's PEOC HX Plain 3-4-55-12 W4 well. Our actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. We can give no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including but not limited to those assumptions and risk factors discussed in our most recent MD&A which is incorporated herein by reference and other documents we file from time to time with securities regulatory authorities, which are available through SEDAR at www.sedar.com The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. We disclaim any intention and have no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Butte Energy Inc.

For further information:

Butte Energy Inc.
Vic Redekop, Chairman
Tel: (403) 541-5310


Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .


Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.


Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.