CALGARY, Aug. 28, 2012 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Corporation" or "Emerald Bay") is pleased to provide an operational update on recent events.
GUADALUPE COUNTY, TEXAS
Recent swab testing operations have concluded on Imhoff 1 in the Austin Chalk formation with results consistent with the Company's expectations. Road and Facilities construction will begin immediately, and production operations are expected to commence by the middle of September.
Regulatory approval was also recently obtained for a Salt Water Disposal well on the Kuhn lease in the Kingsbury area that will be vital to the Company's development plans now, and in the future. The drilling of Kuhn Salt Water Disposal well is expected to begin by the third week of September. Current exploration plans are to drill one well every 60 to 120 days through Q2 2013 in Guadalupe County.
MEDINA COUNTY, TEXAS
Based on the continuing success of the current multi-well drilling program in the Taylor-Ina field, the 12 well program has been expanded to at least 16 wells (4 net wells) in the current phase through Q3 2012. The program continues to be drilled in 4-well packages, and as of this writing 15 wells have been drilled, cased, and cemented. The logs were in line with expectations and consistent oil "shows" were observed confirming the target zones of Escondido and Olmos sands. Ten of the 15 wells have been fracture stimulated and are currently flowing back frac fluid and production oil. Additional facilities were constructed to allow for the increased production. Perforation operations will take place on 4 wells this week, with fracture stimulation operations to follow. It is anticipated that all 16 wells will be turned to production facilities by the end of September.
ABOUT EMERALD BAY
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas. The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY". Please visit www.emeraldbayenergy.com.
If you would like to receive press releases via email please contact [email protected] Please specify "Emerald Bay press releases" in the subject line.
Neither 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 release.
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect", "plan", "intend", "anticipates", "projects", "potential" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements are statements that are not historical facts.
Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a well is actually developed. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Emerald Bay at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Emerald Bay that actual results achieved will be the same in whole or part as those indicated in the forward-looking statements. Forward-looking statements in this document include statements regarding the Company's exploration, drilling and development plans, the Company's expectations regarding the timing and success of such programs. In particular, forward-looking information in this news release includes, but is not limited to, statements with respect to: pipeline acquisitions and leasing; pipeline permits, pipeline construction, production estimates, drilling operations, completion operations, funding and development goals. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in the prices of oil and gas, uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company's oil and gas production, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the applicable securities regulators.
SOURCE: Emerald Bay Energy Inc.
For further information:
Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at [email protected],
CHF Investor Relations:
Robin Cook, Senior Account Manager, (416) 868-1079 x228, [email protected].