Vero Energy Inc. - First quarter operation and production results and increase to 2007 exit production guidance


    CALGARY, April 10 /CNW/ - Vero Energy Inc. (TSX - VRO, "Vero" or the
"Company") is pleased to report that current production based on field
estimates is approximately 4,750 boed. This is a direct result of our most
aggressive quarter to date where the Company participated in the drilling of
17 (10.9 net) wells with a success rate of 82% including two new pool
    Based on actual sales receipts for two months and March field estimates,
Vero's average production for the quarter was approximately 4,350 boed (80%
natural gas) which is a 32% increase over the fourth quarter average of 2006.
The first quarter's average production and solid current production has
warranted an increase to year end exit guidance from 4,700 - 4,900 boed to
5,000 - 5,200 boed. Vero currently anticipates second quarter production to
average 4,500 - 4,700 boed, slightly less than current production rates, due
to the expected long spring break-up where we will be unable to truck fluid at
some locations and a known turn-around of a gas transmission system. The
Company has 6 (3.0 net) wells in various stages of tie in and completion.
    Doug Bartole, President and CEO of Vero stated, "We had our most active
quarter to date and our staff executed the program exceptionally. The direct
result is exceeding our production forecast and increasing our 2007 exit
production guidance. We have continued our trend of significant quarter over
quarter growth since inception." He also adds, "Based on our outstanding last
two quarters we are very excited about our future. With the completion of our
recent equity financing we are in a position to potentially increase our
capital budget with internally generated projects, farm-in opportunities on
other operators' lands and opportunities that we believe will increase our
long term project inventories."
    With a longer than expected spring break-up from a shallow frost line due
to a warm December and the large amount of snow shortly after, Vero
anticipates a slow second quarter in field operations activity. We anticipate
the Company will end the second quarter with net debt of $40-45 MM depending
on when we can resume field operations. Coupled with our newly increased bank
line of $70 MM this will allow us financial flexibility to take advantage of
opportunities that become available. Vero plans to be back in the field full
force in the third quarter executing our program. The drilling agenda consists
of approximately 23 (13.1 net) wells over the remainder of the year.

    Vero Energy Inc. is a publicly traded Canadian energy company involved in
the exploration, development and production of oil, natural gas and liquids in
Alberta. The Company's shares trade on The Toronto Stock Exchange under the
symbol "VRO".

    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein.

    Forward Looking Statements: Certain information regarding the Company in
this news release including management's assessment of future plans and
operations, production estimates, drilling inventory and wells to be drilled,
timing of drilling and tie-in of wells, productive capacity of new wells,
capital expenditures and the timing thereof, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
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, the timing and length of
plant turnarounds and the impact of such turnarounds and the timing thereof,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources. As a
consequence, the Company's actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly no assurance can be given that any
events anticipated by the forward-looking statements will transpire or occur,
or, if any of them do so, what benefits the Company will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could effect the
Company's operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed through
the SEDAR website (, and the Company's website
( Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news 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

    BOE Disclosure: Disclosure provided herein in respect of barrels of 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.


    This press release is reproduced on Vero's website at
Also for the latest presentation and other information about Vero Energy Inc.,
please visit the website (

    %SEDAR: 00022902E

For further information:

For further information: Doug Bartole, President & CEO at (403)
218-2063; Gerry Gilewicz, Vice-President, Finance & Chief Financial Officer at
(403) 693-3170; Scott Koyich, Investor Relations, (403) 714-5979

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