CALGARY, Feb. 12 /CNW/ - Synenco Energy Inc. (TSX: SYN) today announced
that its Board of Directors has approved a cash expenditure budget for 2008 of
$50 million, consisting of $48.1 million earmarked for Northern Lights Project
development (net to Synenco Energy's 60-percent interest) and $1.9 million for
other corporate needs.
The 2008 Synenco budget reflects the 2008 priorities established for the
project, which include advancing the mine's regulatory process, continuing
pilot testing of its bitumen extraction-related technologies and design, and
completion of the 2007/2008 winter drilling program. Included in the corporate
budget are funds to complete the previously commenced evaluation program on
the Company's 100-percent McClelland lease.
Synenco is a Calgary-based oil sands company, which, with a 60-percent
interest, is the managing partner of the Northern Lights Partnership and
operator of the Northern Lights mineable oil sands project. (SinoCanada
Petroleum Corporation, an indirect wholly-owned subsidiary of China-based
Sinopec, owns the remaining 40 percent of the partnership and project.)
Synenco also holds a 100-percent interest in the McClelland oil sands lease
adjacent to the Northern Lights project lands. Visit Synenco's Web site at
About Northern Lights
The Northern Lights project consists of an oil sands mining and bitumen
extraction project about 100 kilometres northeast of Fort McMurray, Alberta
and a heavy oil upgrader project in Sturgeon County near Edmonton. The project
is designed to initially produce 114,500 barrels per day of bitumen for an
estimated 30 years. Regulatory applications for the project were first filed
with the Alberta Energy and Utilities Board (now the Energy Resources and
Conservation Board) and Alberta Environment during 2006.
The Northern Lights Partnership also holds extensive coal lease
applications in the Athabasca region in northeastern Alberta.
Cautionary note regarding forward-looking statements
This news release contains "forward-looking statements" relating to
Synenco Energy Inc. ("Synenco") and Northern Lights Partnership ("NLP") that
are subject, in their entirety, to this cautionary note. Forward-looking
statements are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"intend", "could", "might", "should", "believe" and similar expressions.
As NLP is only in the early stages of engineering and design and has not
yet received regulatory approvals or sought or obtained project financing, all
statements about the proposed project and anticipated production are
forward-looking statements. All other statements suggesting future plans and
outcomes, including statements relating to the expenditure of budgeted funds,
are also forward-looking statements. Forward-looking statements concerning the
future capabilities of the Northern Lights project, including production
capacity and estimated project life, are based on the current design for the
project, which is subject to change.
Readers are strongly cautioned that forward-looking statements are
inherently uncertain and based on a number of estimates and assumptions and
subject to numerous known and unknown risks and uncertainties. Undue reliance
must not be placed on them. Actual results will differ, and in some cases will
differ materially. Refer to the risk factors in Synenco's annual information
form dated March 9, 2007 and to Synenco's annual and interim MD&A.
Forward-looking statements are made as at the date of this news release
and are not guarantees of future performance or outcomes. Synenco expressly
disclaims any obligation to update publicly or revise any of the
forward-looking statements except as required by law.
For further information:
For further information: Todd Newton, President and CEO, Tel. (403)