CALGARY, Feb. 2, 2012 /CNW/ - Carmen Energy Inc. (TSXV: CEI) ("Carmen" or the "Corporation") is pleased to announce that it has spud a well in its Hamburg area of Alberta. Management of the Corporation expects drilling to take up to thirty-five days from the date of spud to reach contract depth and to review well logs.
Additionally, Petrus Resources Ltd. ("Petrus"), a privately owned energy company based in Calgary, Alberta is participating in the well and has the right to earn a 45% working interest in two sections of land in the Hamburg area of Alberta. Petrus is required to contribute 45% of the costs to drill to the contract depth, abandon, cap or complete, equip and tie-in the first option well. The working interest is subject to the same non-convertible overriding royalty calculated on 100% of production of 1/15 (min. 5/10% and max 15/20%) on crude and 15/20% on all other petroleum substances that Carmen is subject to and payable to the original party whose property Carmen's farmin is with (as previously disclosed in a press release of the Corporation dated December 9, 2011) and subject to Crown Royalties.
The Corporation's Sylvan Lake 102/14-7-38-3w5 Leduc well has been on production since November 7, 2011, without artificial lift. The first thirty days of production averaged 35 barrels of oil equivalent ("BOE/d") per day consisting of 5 barrels of oil per day, 12 barrels of natural gas liquids per day and 108 Mcf/day net to the Corporation. Plans are being initiated to put the well on artificial lift. Carmen has a 15% working interest in the well. Carmen will provide a production update upon receipt of stabilized rates subsequent to implementation of artificial lift.
The Sylvan Lake 12-22-38-4w5 Leduc well has been completed and tested at noncommercial rates and is standing awaiting further evaluation.
Production at the Jumpbush area of Alberta well which Carmen owns a 37.5% working interest has maintained stable production rates of 8 BOE/d (net) comprised of 5 barrels of oil per day and 18 Mcf/day.
The Corporation is also pleased to announce the implementation of an Executive Committee comprised of three members of the Board of Directors being Randy Harrison, Archie Nesbitt and Gerald Facciani. The role of the Executive Committee will be to facilitate financings, negotiate and review corporate contracts. In conjunction with the implementation of the Executive Committee, Brian Doherty will relinquish the title of Chief Executive Officer in order to focus on his duties as President and Director of the Corporation.
Carmen also announces that Grant MacKenzie, a partner at Burnet, Duckworth and Palmer LLP has assumed the position of Corporate Secretary and General Counsel for the Corporation effective immediately.
Furthermore, the Corporation announces that a total of 950,000 stock options have been granted to the directors, and officers of the Corporation at an exercise price of $0.19 per share for a period of five years from the date of grant. The options have been granted in accordance with the Corporation's stock option plan.
About Carmen Energy Inc.: Carmen is based in Calgary, Alberta and a publicly traded oil and gas exploration and production company. The focus is on exploration and development of Western Canadian Sedimentary Basin based oil and gas properties. The current projects are the Jumpbush properties in south eastern Alberta, the Ferrybank properties in central Alberta, the Sylvan Lake area properties in Southern Alberta and the Hamburg properties in northern western Alberta.
Barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. The BOE conversion ratio used in this report is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in this report are derived by converting gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf = 1 BOE). It is important to note that the 1:6 ratio is based on an energy equivalency and the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1; utilizing a conversion on a 6:1 may be misleading as an indication of value.
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, the actual time to reach contract depth of the Hamburg area well and the review of logs within thirty-five days from the date of spud, plans to place the Sylvan Lake well on artificial lift and information with respect to the Corporation's beliefs, plans, expectations, anticipations, estimates and intentions and the activities of the Corporation. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. . The forward-looking information in this news release describes the Corporation's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, the risks associated with the oil and gas industry in general, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licences and leases in the conduct of its business, the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; reliance on third parties, reliance on key personnel, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, competition, environmental matters, and insurance or lack thereof; failure to realize the anticipated benefits of acquisitions including the Acquisition; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on the Corporation's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE CORPORATION AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE CORPORATION MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
For further information: