2012-11-28 12:06:31 -
CALGARY, ALBERTA -- (Marketwire) -- 11/28/12 -- Crocotta Energy Inc. ("Crocotta" or the "Company") (TSX:CTA) is pleased to announce that current production is estimated to be 8,200 boepd (67% gas; 33% light oil and natural gas liquids). Crocotta is currently drilling at Edson and projects it will have an additional 2 (1.0 net) cardium wells and 1 (1.0 net) Bluesky wells on production by mid-December and, based on type curves, will exceed its exit target of 8,500 boepd with an approximate $90 million in 2012 capital expenditures.
Initial production rates for both Bluesky and Cardium have been at or above our type curves with drilling and completion costs coming in slightly below our estimates. Given current reduced costs combined with our drilling success to date, Crocotta is looking at drilling 1 (1.0 net) cardium well, 1 (0.60 net) Bluesky well and completing 1 (1.0 net) Montney well that was originally budgeted for 2013. The corresponding costs would be additive to the 2012 capital expenditures above and such wells would be completed and onstream during Q113.
Crocotta's 2013 Guidance is estimated to be released in late January 2013.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this document contains forward looking statements and information relating to the Company's oil, NGLs and natural gas production and capital programs. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
Crocotta Energy Inc.
President and Chief Executive Officer
Crocotta Energy Inc.
Vice President, Finance and Chief Financial Officer
Crocotta Energy Inc.
700, 639 - 5th Ave SW
Calgary, Alberta T2P 0M9
(403) 538-3735 (FAX)