CALGARY, Sept. 15, 2014 /CNW/ - Seven Generations Energy Ltd. ("7G" or the "Company") is pleased to announce that it has increased its contracted volumes with Pembina Pipeline Corporation and its affiliates ("Pembina"). 7G has increased its volumes on Pembina's Peace Pipeline Phase III Expansion by 91% to 40,695 barrels per day, such service to commence upon the completion of Pembina's Phase III Expansion expected in late-2016 to mid-2017. This volume is primarily comprised of condensate, and includes natural gas liquids and light sweet crude oil. 7G has also increased its contracted volumes at Pembina's fractionation expansion project (RFS3) near Fort Saskatchewan by 143% to 8,806 barrels per day.
7G Vice President, Construction and Marketing, Merle Spence, said, "With these increased volumes we will have secured a significant portion of liquids transportation and market access which we will need to augment the 500 MMcf/d (total) of rich gas sales that we have arranged for the Alliance pipeline system."
Pat Carlson, 7G's Chief Executive Officer, added, "Our vision is to build a project that can produce a total of more than 2 billion cubic feet per day of sales gas and more than 200 thousand barrels per day of total liquids. We have acquired a land base of sufficient size and quality that we expect to be able to support, alone or as a major contributor, large market opportunities such as liquefied natural gas export and transcontinental pipelines if they are required. In combination with our other marketing arrangements these contracts with Pembina give us time to delineate our resource and find or develop markets and transportation for the rest of our resources."
About the Company
Seven Generations Energy Ltd. is a private, Canadian company engaged in the development of the Kakwa River Project (the "Project"). Located approximately 100 kilometers south of Grande Prairie, Alberta, the Project is a tight, liquids rich gas and light oil project in the early stages of development. The Company's vision for the Project incorporates the potential production capacity of more than 2 billion cubic feet per day of natural gas and more than 200 thousand barrels per day of natural gas liquids (including condensate). 7G has a corporate headquarters in Calgary, Alberta and an operations headquarters in Grande Prairie, Alberta.
This press release may contain forward-looking information and statements regarding the Company. Any statements included in this press release that address activities, events or developments that the Company "expects," "believes," "plans," "projects," "estimates" or "anticipates" will or may occur in the future are forward-looking statements. Actual results may differ materially due to a variety of important factors. Among other items, such factors might include: planned and unplanned capital expenditures; changes in general economic conditions; uncertainties in reserve, resource and production estimates; unanticipated recovery or production problems; weather-related interference with business operations; the effects of delays in completion of, or shut-ins of, gas and liquids gathering systems, pipelines and processing facilities; potential costs associated with complying with new or modified regulations; oil and natural gas prices and competition; the impact of derivative positions; production expense estimates; cash flow and cash flow estimates; drilling and operating risks; the Company's ability to replace oil and gas reserves; volatility in the financial and credit markets or in oil and natural gas prices; effects of regulation by governmental agencies including changes in environmental regulations, tax laws and royalties. Except as required by law, the Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change. Do not place undue reliance on forward-looking information.
Seven Generations has adopted the standard of 6 Mcf:1 bbl when converting natural gas to oil equivalent. boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 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. Given the value ratio based on the current price of oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication of value.
SOURCE: Stikeman, Elliott - Calgary
For further information:
Pat Carlson, CEO