CALGARY, April 6 /CNW/ - Vero Energy Inc. (TSX - VRO, "Vero" or the "Company") is pleased to report drilling and operating results for the first quarter of 2011.  During the quarter, the Company participated in the drilling of 11 (9.2 net) horizontal wells and one vertical deep basin gas well. Horizontal drilling activities achieved success on 10 of 11 wells resulting in five Cardium oil wells, four Notikewin wells, and one Viking well.

The drilling program enabled the Company to add significant production since Q4 2010, adding approximately 2,700 boe/d and yielding current production field estimates of approximately 11,000 boe/d (73% natural gas).  In addition, the Company just completed and tested another Notikewin horizontal well forecast to be on production April 10 at a restricted rate of approximately 1,000 boe/d.  This should bring aggregate corporate production to approximately 12,000 boe/d.  Included in this production estimate are three new Notikewin horizontal gas wells which the Company currently has restricted with chokes, and are expected to produce at restricted flat rates for 2-6 months. The first quarter was very active for Vero and the industry, resulting in 8 of the wells not being completed until the last 5 weeks.  Two wells drilled in the quarter will not get completed until after spring break up which include a horizontal Cardium oil well and a vertical test well targeting multiple zones.

Vero currently has two rigs operating but expects to slow down drilling and completion operations in the second quarter due to spring break up.  The focus for the quarter and the remainder of the year is on Cardium light oil where the Company continues to be pleased with results.  Current production from the Company's Cardium operations, based on field estimates is 1,700 boed (75% oil and liquids).

"In a challenging operating environment, our team has efficiently and effectively executed an active program that added a significant amount of production in a short period of time on our asset base." said Doug Bartole President and CEO.  "Many of the production additions have come from exploratory wells and step out locations.  The results have exceeded our expectations and will be followed up throughout the year and into the future."

For the remainder of the year the Company plans to drill approximately 25-28 gross (17-19 net) horizontal wells with a focus on Cardium light oil which will comprise approximately 20-23 gross (13-15 net) of the horizontal wells. Gas drilling will continue to be high-graded to target high impact, liquids rich wells that have strong economics.  The Company's gas production is liquids rich and averages approximately 30 bbls/mmcf.

Vero reiterates its previously released 2011 average production guidance of between 10,000 - 10,500 boed (72% natural gas) as the Company concentrates its drilling activities on its Cardium light oil inventory, which tend to have lower overall production rates per well but superior netbacks than gas in the current commodity environment.  Upon successful implementation of the Company's 2011 program, the production mix is expected to have changed from approximately 22% oil and liquids in 2010 to an estimated 31 - 35% by year end 2011. The team's belief is that with current and future oil prices, this shift in capital will have a positive impact on both our corporate netbacks and our overall profitability.

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". Vero's latest presentation will be available on the Company's website on April 11, 2011.


Forward Looking Statements:  Certain information regarding the Company in this news release including management's assessment of future plans and operations, current production estimates, forecast production estimates, initial production rates, drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of new wells, potential prospectivity of our Cardium lands, future commodity mix, capital expenditures and the timing thereof and the potential impact of our capital expenditure plans on our corporate netbacks and corporate valuation 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 (, and the Company's website ( 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 laws.

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.

This press release is reproduced on Vero's website at  Also for the latest presentation and other information about Vero Energy Inc., please visit the website (

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

SOURCE Vero Energy Inc.

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

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Vero Energy Inc.

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