CALGARY, May 7 /CNW/ - ("HFG" or the "Company") (TSXV: "HFG") is pleased
to provide an operational update and additional details on its future
In the first quarter of 2009 Sabretooth Energy Ltd. ("Sabretooth") and
HFG deepened a vertical well in the Sinclair area to the Montney formation.
Based on prospective pay on logs, this well has been cased for a future
completion. This well held three expiring sections in which the Company held
an interest and earned an interest in an additional two gross sections of
land, with the Company acquiring an interest in approximately 1769 additional
net acres at Sinclair by virtue of the deepening operation. Subsequent to the
deepening operation a drilling rig was moved into Sinclair and the next
Montney well is anticipated to spud when weather and surface access conditions
allow in June. HFG and Sabretooth also plan to drill a third Montney well at
Sinclair in 2009.
HFG and Sabretooth finished drilling, completing and testing its first
horizontal Montney well at Red Creek in the first quarter of 2009 as press
released on February 19, 2009. Recorders were run in March for pressure
build-up and will be pulled in May for analysis.
HFG's existing non-conventional Montney undeveloped land holdings total
approximately 40,440 net acres, of which the Company's northeast British
Columbia Montney land holdings account for approximately 80% of that number.
For the balance of the year, HFG plans to participate in the drilling of
three Montney exploration wells in the Sinclair and Mica areas of Alberta and
British Columbia. Sabretooth will operate these wells on behalf of HFG who
holds a 99.9% interest in these wells. The first wells at Sinclair and Mica
will be drilled as pilot holes which will allow the wells to be drilled out
horizontally at a later date if the logging, testing and other reservoir
results are favourable. Sabretooth has moved a drilling rig into the Sinclair
area and anticipates spudding the first well in June pending weather and
surface access conditions. The Mica well is expected to spud in the third
quarter of 2009.
Sabretooth also plans to drill a development horizontal well at
Gordondale following the results of Sabretooth's Montney success in that area.
HFG has a 33.3% working interest in this well.
Sabretooth Energy Ltd. ("Sabretooth") has today issued a press release,
and filed financial statement for the three month period ending March 31, 2009
and related management's discussion and analysis which contain certain
financial and other information pertaining to HFG and are available on
Sabretooth's SEDAR profile at www.sedar.com.
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 (TSXV) under the symbol "HFG".
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 consist of 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 , 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.
Note Regarding BOE's
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.
For further information:
For further information: please contact HFG Holdings Inc., 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: