West Announces Alberta Energy and Utilities Board Notices


    CALGARY, April 16 /CNW/ - West Energy Ltd. ("West" or "Company", TSX:
"WTL") updates shareholders of notices received from the Alberta Energy and
Utilities Board (AEUB) affecting its production from its operations along the
Pembina Nisku trend.
    Late on Friday April 13, 2007, West received two notices from the AEUB
affecting the Company's current production base. The first notice requires
that all production from the Pembina Nisku WW pool be shut-in immediately
which includes the Company operated well located at 5-35-48-8W5 (W.I. 60%).
The well was producing approximately 1,200 BOEPD to the Company. The pool will
remain shut-in until the reservoir pressure is restored above the MOP which is
uncertain at this point. The Company's reserves have not been affected by this
    The second notice received affects the Company's near term ability to
inject water in the Pembina Nisku SS pool. West has been injecting more water
into the SS pool than was initially authorized by the AEUB. West's actions
were to maintain the pool pressure above the MOP. Even though West had been
maintaining a voidage replacement ratio (VRR) of 1.5 times (ratio of water
injected to amount of production) the reservoir pressure was falling and in
February, West had shut-in its producing well at 14-27-48-8W5 to arrest the
pressure fall. The result caused the cumulative VRR to exceed 1.0, which is
contrary to the enhanced oil recovery (EOR) scheme approval. West believes its
actions in February and its continued injection volumes are needed to maintain
the reservoir pressure. The current SS pool reservoir pressure is above the
MOP and the SS pool wells will continue to produce approximately 750 BOEPD to
the Company. Without continued injection however, West believes the pressure
will fall below the MOP sometime in early May. Today West applied to the AEUB
for an amendment to the EOR scheme to allow West to continue to inject
sufficient water into the SS pool to maintain pressure. The Company's reserves
have not been affected by this action.
    The Pembina Nisku EOR schemes are injecting water into a common aquifer
for the sole purpose of maintaining reservoir pressure to maximize oil
recovery. Communication between Nisku pools through a common aquifer is well
known and must be compensated for in the VRR calculation. West's experience to
date shows there is no simple relationship between the VRR calculation for a
pool and maintaining the reservoir pressure. All Nisku operators must work
together to maintain production and West is working with the other operators
to find solutions.
    The Company's current production base of 4,400 to 4,800 BOEPD will be
affected by the above actions of the AEUB. West is working to bring two
additional wells on stream in the near future. The Lodgepole 16-32-47-9W5 well
(W.I. 100%) is awaiting GPP approval from the AEUB. The well located at
11-32-48-9W5 (W.I. 50%) received approval to produce from the AEUB in early
March, however the operator has yet to bring the well on stream.
    The team at West has been working very hard to minimize the affects of
third party interference in bringing the Company's production base on stream.
The second half of the year sees the Company focusing on exploration drilling
in the Crossfire area and its new exploration fairway in Alberta.

    Reader's Advisory:
    Certain information regarding West Energy Ltd. in this news release
including management's assessment of production estimates, enhanced oil
recovery projects, future plans and operations, and their timing may
constitute forwarding-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, incorrect assessment of the value of acquisitions, failure to
realize the anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources. As a consequence,
actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhausted. Additional information on these and other factors
that were applied in drawing a conclusion or making a forecast or projection
as reflected in the forward-looking information and that could cause actual
results to differ materially from those anticipated in the forward-looking
statements are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com) or
at the Corporation's website (www.westenergy.ca). Furthermore, the
forward-looking statements contained in this news release are made as the date
of this news release and the Corporation 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 laws.
    BOE's may be misleading, particularly if used in isolation. In accordance
with NI-51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 Bbl has
been used which is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalence at the

    %SEDAR: 00018134E

For further information:

For further information: Ken McCagherty, President and Chief Executive
Officer, Email: mccagherty@westenergy.ca, Direct Phone: (403) 716-3458 or Rick
Jaggard, Vice-President Finance and Chief Financial Officer, Email:
rjaggard@westenergy.ca, Direct Phone: (403) 716-3457

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