Second Wave Petroleum Provides Update on its Judy Creek Operations

Toronto Stock Exchange: SCS
82,899,295 Common Shares

CALGARY, Jan. 12 /CNW/ - Further to its news release of December 13, 2010, Second Wave Petroleum Inc. ("Second Wave" or the "Company") provides an update on its Judy Creek operations.

The Company has successfully located and purchased a new refrigeration system to replace the unit that was damaged in the previously announced fire at its Judy Creek 08-24-063-10W5 gas plant. The new refrigeration unit was purchased on December 20, 2010, and was delivered to the field on January 5, 2011, where it is positioned at the plant site. The new system has a licensed capacity for 10 mmcf/d of natural gas with a capability to produce stabilized natural gas liquids at a ratio of 30 bbls per mmcf, which is an increase from the damaged system's capacity of 6 mmcf/d of natural gas with a capability to produce 10 bbls of natural gas liquids per mmcf. Currently, the system is undergoing well connections and testing with the expected online date to occur during the last week of January 2011.

Prior to the outage, Judy Creek production had reached a daily net rate of approximately 1,300 boe/d with approximately 1,050 boe/d being produced from the Company's Judy Creek Pekisko oil battery. As solution gas from the Company's Pekisko oil battery is processed exclusively at the damaged 08-24-063-10W5 gas plant, production of approximately 1,050 boe/d was shut in on December 10, 2010, as the Company could no longer meet its hydrocarbon dew point requirements on its sales gas stream.

Since the outage at Judy Creek, the Company has completed the tie-ins of its 100% working interest 03-14 Gilwood gas well and its 05-14 Pekisko horizontal oil well. Additionally two Pekisko horizontal oil wells and one vertical oil well have been drilled and are currently awaiting completion and tie-in. Currently, the Company has 1,650 boe/d of production awaiting start-up of the Judy Creek gas plant, with the two Pekisko horizontal oil wells and one vertical oil well to be brought on later in the first quarter.

As a result of the shut-in volumes at Judy Creek the Company's current production, by area, is approximately 400 boe/d at Provost, 250 boe/d at Battle Creek, 250 boe/d at south Judy Creek and 100 boe/d from other minor areas for a total of approximately 1,000 boe/d.

The Company looks to provide an additional operational update in February once the refrigeration plant is started up and all of the associated shut-in and standing wells are on line and optimized.

READER ADVISORIES

Barrels of Oil Equivalent (BOEs). The term BOE refers to barrel of oil equivalent, with natural gas converted to crude oil equivalent at a ratio of six thousand cubic feet to one barrel. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf (six thousand cubic feet) to one bbl (one barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward-Looking Statements. This news release contains forward-looking statements as to the Company's internal projections, expectations and beliefs relating to future events or circumstances. Forward-looking statements are typically (but not necessarily) identified by words such as "anticipate", "believe", "plan", "estimate", "expect", "plan", "intend", "potential", "may", "will", "should" or similar words suggesting future outcomes. Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on them as they are subject to known and unknown risks and uncertainties, many of which are beyond the Company's control. Forward-looking statements are not guarantees of future outcomes. There can be no assurance that the plans, intentions or expectations contained in the forward-looking statements or upon which they are based will in fact occur or be realized, and actual results may differ from those expressed or implied in the forward-looking statements. The difference may be material.

Second Wave is subject to the inherent risks associated with the exploration, development, exploitation and production of oil and gas. More particularly, material risk factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements contained in this news release include: adverse changes in commodity prices, interest rates or currency exchange rates; accessibility of capital when required and on acceptable terms; lower than expected production of crude oil and natural gas; production delays; lower than expected reserve volumes on the Company's properties; increased operating costs; ability to attract and retain qualified personnel or to secure drilling rigs and other services on acceptable terms; competition for labour, equipment and materials necessary to advance the Company's projects; unforeseen engineering, environmental or geological problems; ability to obtain all required regulatory approvals on a timely basis and on satisfactory terms; and changes in laws and governmental regulations (including with respect to taxes and royalties). This list is not exhaustive. Readers should also review the risk factors described in other documents filed by the Company from time to time with securities regulatory authorities in Canada, including its most recent annual information form, copies of which are available electronically at www.sedar.com and at www.secondwavepetroleum.com.

Specific forward-looking statements contained in this news release include statements regarding: the timing for bringing the Judy Creek gas plant back online; and the completion and tie-in of two Pekisko horizontal oil wells and one vertical oil well during the first quarter. In making such forward-looking statements, Second Wave has made various assumptions regarding, among other things: the accuracy of geological and geophysical data and interpretations of that data; future oil and natural gas prices; future capital requirements; future exchange rates; the accessibility and cost of associated services; the Company's ability to economically produce oil and gas from its properties and the timing and cost to do so; and its ability to obtain qualified staff, equipment and supplies in a timely and cost-efficient manner.

The forward-looking statements included herein are made as of the date of this news release and Second Wave undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by securities laws.

SOURCE Second Wave Petroleum Inc.

For further information:

Colin B. Witwer, President and CEO
Randy Denecky, VP, Finance and CFO
Telephone: (403) 451-0165
Email: info@secondwavepetroleum.com
Web: www.secondwavepetroleum.com

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Second Wave Petroleum Inc.

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