CALGARY, April 10 /CNW/ - Highpine Oil & Gas Limited (TSX: HPX)
("Highpine" or the "Company") is pleased to provide a first quarter production
Highpine's average production for the first quarter of 2007 exceeded
Highpine's March 2007 production averaged approximately 18,000 boe/d. The
March volumes did not include any production from the Dominion operated
Pembina Nisku "II" pool which was shut in during the month to rebuild
reservoir pressure and were also further reduced by a short term failure of a
non-operated gas plant injection well which is now repaired.
On April 10, 2007, the Nisku "WW" pool was temporarily shut-in to allow
reservoir pressure to build above the AEUB assigned minimum operating pressure
("MOP") for the pool. Despite Highpine replacing its voidage in the "WW" pool,
the reservoir pressure dropped below the MOP as voidage from another
operator's offsetting production in the pool was not replaced.
Highpine's current production remains in excess of 17,000 boe/d without
any contribution from the Nisku "II" and "WW" pools.
Highpine is placing new Nisku production on stream at this time. In
addition, the Nisku "II" pool and Highpine's approximate 1,500 boe/d of
working interest production therefrom, curtailed on March 1, 2007, is
scheduled to re-commence production next week. Additional water source and
injection capacity have been added to the Nisku "II" pool which will reduce
the likelihood of future shut-ins.
Highpine continues to estimate an average 2007 production rate in excess
of 20,000 boe/d, notwithstanding production fluctuations which may be
experienced by Highpine's Nisku pools during the year.
Highpine is a Calgary-based oil and natural gas company engaged in
exploration for and the acquisition, development and production of natural gas
and crude oil in western Canada. Highpine's current exploration and
development efforts are focused in the West Pembina Nisku and West Central
Alberta Gas Fairway, both located in Central Alberta. The Company's class "A"
common shares trade on the Toronto Stock Exchange under the symbol "HPX".
Boes may be misleading, particularly if used in isolation. A boe
conversion ratio of six mcf to one bbl 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 in this news release contain forward-looking information
including expectations of future production, plans for and results of
exploration and development activities and other operational developments.
Readers are cautioned that assumptions used in the preparation of such
information may prove to be incorrect. Events or circumstances may cause
actual results to differ materially from those predicted, as a result of
numerous known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. These risks include, but are not
limited to; the risks associated with the oil and gas industry, commodity
prices, and exchange rate changes. Industry related risks include, but are not
limited to; operational risks in exploration, development and production of
oil and gas and production risks associated with sour hydrocarbons, dependence
on third party owned and operated production facilities, availability of
skilled personnel and services, failure to obtain industry partner, regulatory
and other third party consents and approvals, delays or changes in plans,
risks associated with the uncertainty of reserve estimates, health and safety
risks and the uncertainty of estimates and projections of reserves,
production, costs and expenses. The risks outlined above should not be
construed as exhaustive. Readers are cautioned not to place undue reliance on
this forward-looking information. The Company undertakes no obligation to
update or revise any forward-looking statements except as required by
applicable securities laws.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
For further information:
For further information: Greg Baum, President and Chief Operating
Officer; Bob Rosine, Executive, President, Corporate Development; Harry
Cupric, Vice President, Finance and Chief Financial Officer; Telephone: (403)
265-3333, Facsimile: (403) 265-3362; Media Contact: Shauna MacDonald, (403)