CALGARY, June 4 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Company") is pleased to report on recent crude oil-focused developments at three counties in South Texas.
South Texas Oil
Medina County Texas: CAPEX funding for the optimization and drilling has been secured for the Medina County property recently acquired in March. The development plan will be carried out in two phases:
(1) Well optimization:
Multiple wellbores will undergo various work-overs to maximize their
potential, including upgrading production lifting equipment, and a
re-perforation of Olmos formation. The final phase of the well
optimization program will focus on the by-passed Escondido zone which
is producing in off-set leases. Upon completion of the optimization
steps and before drilling operations, Emerald Bay projects to be
producing approximately 50 to 75 net barrels per day from the Medina
(2) In-fill drilling:
Over 100 in-fill drilling locations have been indentified on the
existing leases in Medina County. The wells will be drilled in groups
of ten to reduce costs and is currently scheduled to begin in July of
this year. The wells will target both the Escondido and Olmos
formations and will be tied into existing production facilities.
Based on historical production in the area from the Olmos formation,
the Company is expecting initial production rates between 7 and 15
barrels of oil per day, per well. Emerald Bay is also planning a well
late in 2010 that will test the Austin Chalk and Eagle Ford Shale
Zavala and Uvalde Counties Texas: The Company has recently leased approximately 600 acres in Uvalde County to develop serpentine plugs located on the property. A nearby serpentine plug well drilled in 1976 by Emerald Bay's consulting engineer has produced close to 300,000 barrels of oil. Emerald Bay has also executed an Option and Right of First Refusal Agreement with The Energy Company of Texas covering an Area of Mutual Interest of approximately 22,000 acres targeting the Eagle Ford Shale. This is a continuation of the Company's Eagle Ford Shale work dating back to 2007. 47+ active rigs are now drilling horizontal Eagle Ford Shale in South Texas.
"Our transition to oil-focused development in Texas and Alberta will provide the near-term and long-term stability we believe is necessary as natural gas prices continue to remain low. The low-cost, low-risk Medina County project is a great step in the right direction, and the Eagle Ford Shale horizontal drilling efforts in South Texas have produced amazing results. For a Company our size, we believe we will have a very attractive land position in the oil portion of the Eagle Ford trend," stated Shelby Beattie, President and CEO.
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.
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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: For further information: Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at email@example.com; or CHF Investor Relations: Chelsea Jones, Associate Account Manager, (416) 868-1079 x246, firstname.lastname@example.org; Robin Cook, Senior Account Manager, (416) 868-1079 x228, email@example.com