CALGARY, Feb. 19 /CNW/ - ("HFG" or the "Company") (TSXV: "HFG.P") is
pleased to provide an operational update and additional details on its future
Red Creek Horizontal, B.C.
HFG and Sabretooth Energy Ltd. ("Sabretooth") have finished completing
their first horizontal, exploration Montney well at Red Creek in February
2009. The well continues to recover gas and condensate and has recovered 59%
of its completion fluid. The well is currently producing at 670 mcf/d with
flow pressures of 1,000 kPa tubing and 3,650 kPa casing. Stabilized rates are
below expectations, however, Sabretooth and HFG are currently equipping the
well for extended cleanup and further flow test to better understand well
performance once additional load fluid is recovered. The well is owned by HFG
Holdings Inc. which is owned 71% by Sabretooth Energy.
Exploration and Development Update
HFG will continue to focus its exploration and development efforts on its
core land holdings which will provide opportunities for growth for the balance
of 2009 and into 2010. Sabretooth and HFG plan to spud a vertical Montney
exploration well in Sinclair this weekend. A second Sinclair Montney vertical
exploration well is expected to spud in Q2. Sabretooth and HFG also plan a
horizontal development Montney well, offsetting the recent successful
horizontal Montney well in the Gordondale area, following spring breakup.
About HFG Holdings Inc.
HFG Holdings Inc. is a public oil and gas exploration and development
company, located in Calgary, Alberta and carrying out operations in Western
Canada. HFG trades on the TSX Venture Exchange under the symbol "HFG.P".
This news release contains forward-looking statements relating to the
Company's plans and other aspects of the Company's anticipated future
operations, strategies, financial and operating results and business
opportunities. Forward-looking statements typically use words such as
"anticipate", "believe", "project", "expect", "plan", "intend" or similar
words suggesting future outcomes, statements that actions, events or
conditions "may", "would", "could" or "will" be taken or occur in the future,
or statements regarding the outlook for petroleum prices, estimated amounts
and timing of capital expenditures, the timing, location and extent of future
drilling operations anticipated timing and results of construction projects
and project tie-ins, estimates of future production, the ability to realize
the timing, operating costs or other expectations, beliefs, plans, objectives,
assumptions or statements about future events or performance. Statements
regarding reserves are also forward-looking statements, as they reflect
estimates as to the expectation that the deposits can be economically
exploited in the future.
These statements are based on certain factors and assumptions regarding
expected growth, results of operations, performance, business prospects and
opportunities. While we consider these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
By their nature, forward-looking statements involve numerous risk and
uncertainties and other factors that contribute to the possibility that the
predicted outcome will not occur, 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, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of acquisitions,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Although HFG believes that the expectations represented in such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. As a consequence, actual results may
differ materially from those anticipated in the forward-looking statements and
you should not unduly rely on forward-looking statements. The forward-looking
statements contained in this news release are made as the date of this new
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.
The term barrels of oil equivalent or boe may be misleading, particularly
if used in isolation. A conversion ratio for gas of 6 mcf : 1 boe is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.
Statements regarding flow rates in this news release are current only as
of the date hereof. Future flow rates may vary, perhaps materially, and the
wells in question may prove to be technically or economically unviable. Any
future flow rates will be subject to the risks and uncertainties set out in
this news release.
For further information:
For further information: HFG Holdings Inc. and/or Sabretooth Energy
Ltd., Doug Swartout, Investor Relations, (403) 806-4047, Email:
firstname.lastname@example.org, Website: www.sabretooth.ca; or Brookline Public Relations,
Inc., Shauna MacDonald, Media and Investor Relations, (403) 538-5645, Email: