/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
CALGARY, Oct. 31 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper"
or the "Company") advises that it has recently tested 3 new significant wells
in the Sylvan Lake area of Alberta with a 4th well currently being completed.
Details on the 15-02-39-4W5 discovery well ("15-2") are as follows. The
well tested at a restricted rate of 2.3 MMcf/d at a flowing tubing pressure of
7,500 kPa from approximately 15 feet of net pay in the Ostracod Formation.
Alberta Clipper operates the well and holds a 71% working interest. The
Company is currently finalizing tie-in routes and expects the well to be on
production at initial rates of up to 3.5 MMcf/d (400 boe/d net) by the end of
The 10-22-38-4W5 discovery well ("10-22") tested at a final rate of
400 boe/d from 12 feet of net oil pay in the Leduc Formation. Alberta Clipper
operates the well and holds a 50% working interest. The Company is currently
in the process of obtaining all regulatory approvals required to tie the well
into Alberta Clipper-owned infrastructure. Tie-in is expected to be completed
before the end of the year. The well will be subject to a Maximum Rate
Limitation ("MRL") as determined by the Alberta Energy and Utilities Board
upon commencement of production.
The 12-04-38-4W5 Leduc development well ("12-04") tested at a restricted
rate of 380 boe/d from a 13 foot barefoot section within a pool that exhibits
over 158 feet of Leduc oil pay. The barefoot technique was employed for the
first time in this pool in an attempt to maximize oil recovery in this large
oil-in-place reservoir that is currently exhibiting less than a 10% recovery
factor. Alberta Clipper is operator and holds a 50% working interest in the
well. The well is expected to be on production by the end of the year and is
not subject to MRL limitations.
In addition to the aforementioned tests, Alberta Clipper is currently
completing a new Ellerslie oil discovery located at 12-30-38-3W5. ("12-30").
Again, with successful test results it is expected that this well will be on
production by the end of the year. Alberta Clipper holds a 100% working
interest in the 12-30 well.
Alberta Clipper is currently assessing the impacts of the Alberta
Department of Energy royalty changes and estimates a decrease in 2009 cash
flow of approximately 14% at US$86 oil, AECO C$6.50 gas and current
productivity rates. It should be noted that actual effect of the proposed
royalty changes on Alberta Clipper will be dependent on the specifics of the
royalty changes enacted, pricing parameters, average well productivity and
product mix of the Company in 2009.
In assessing the overall effects of the proposed royalty scheme, Alberta
Clipper agrees with other Alberta-based exploration companies on what appears
to be inequitable treatment for those engaged in high-risk oil exploration.
Alberta Clipper intends to continue to provide information to the Government
of Alberta regarding the effects on future risked drilling economics in an
attempt to deal with what appears to be the unintended consequences of the oil
Although a portion of Alberta Clipper's growth will continue to come from
its Sylvan Lake Leduc exploration program, the proposed royalty scheme does
not provide the same risk-reward return across the entire portfolio of
single-zone Leduc exploration targets. The Company, however, has a large
number of shallow prospects, which have been seismically identified on
third-party lands held by deeper production in the Sylvan Lake area. With the
recently announced proposal for shallow-rights-reversion, many of the
identified shallow opportunities within this area will revert back to the
crown for inclusion in future Crown land sales. The Sylvan Lake exploration
program will over time move from being largely a single-zone play to a stacked
multi-zone play with over 10 potential horizons. Alberta Clipper's extensive
3D seismic data set and infrastructure base will continue to provide the
Company with an exploration advantage in targeting these new opportunities.
Alberta Clipper Energy Inc. is a publicly traded Canadian energy company
involved in the exploration, development and production of natural gas and
crude oil in western Canada.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements including
expectations of future production. More particularly, this press release
contains statements concerning Alberta Clipper's future cash flow, production
estimates, exploration and development drilling, regulatory applications,
payout estimates, capital expenditures, and drilling locations to be drilled.
These statements are based on current expectations that involve a number of
risks and uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks associated
with the oil and gas industry (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty
of reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
regulatory, commodity price, price and exchange rate fluctuation and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. Additional
information on these and other factors that could affect Alberta Clipper's
operations or financial results are included in Alberta Clipper's reports on
file with Canadian securities regulatory authorities.
The forward-looking statements or information contained in this news
release are made as of the date hereof and Alberta Clipper undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.
Oil and Gas Advisory
This press release contains disclosure expressed as "Boe/d". All oil and
natural gas equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil. Equivalency measures
may be misleading, particularly if used in isolation. A conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the well head.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Not for
distribution to U.S. newswire services or for dissemination in the United
States. Any failure to comply with this restriction may constitute a violation
of U.S. securities law.
For further information:
For further information: Kel Johnston, President & C.E.O., Alberta
Clipper Energy Inc., Telephone: (403) 440-3474, Facsimile: (403) 440-3475,